Under Armour lowers outlook, cutting about 280 jobs
Under Armour is cutting approximately 280 jobs from its global workforce and lowering its full-year revenue outlook, overshadowing a strong second-quarter and extending woes for companies in the retail sports sector.
Shares declined more than 5 per cent in premarket trading Tuesday.
A board-approved restructuring plan will come with about $110 million to $130 million in related charges this year. That includes approximately $15 million in employee severance and benefits costs.
Under Armour Inc. now expects full-year revenue growth of 9 per cent to 11 per cent, down from a previous outlook of 11 per cent to 12 per cent growth. The chain foresees fullyear adjusted earnings between 37 and 40 cents per share.
For the quarter ended June 30, the sports clothing and accessories company lost $12.3 million, or 3 cents per share. That compares with a loss of $52.7 million, or 12 cents per share, a year earlier.
That’s better than the loss of 6 cents per share expected by analysts, according to a poll by Zacks Investment Research.
Revenue for the Baltimore company climbed to $1.09 billion, from $1 billion, squeaking by Wall Street projections.
This Jan. 4, 2016, photo shows a pair of Under Armour SpeedForm Gemini 2 Record Equipped running shoes. On Tuesday, Under Armour announced it is cutting approximately 280 jobs from its global workforce and lowering its full-year revenue outlook, overshadowing a second-quarter performance that topped most expectations.