Under Armour Widens Restructuring Costs, Lowers Fiscal Outlook business, fashion, fashion news

Under Armour Inc., the Baltimore-based athletic apparel brand, announced a downward revision of its fiscal outlook, citing increased expenses associated with its ongoing restructuring plan. The company now anticipates a wider operating loss for the current fiscal year, driven primarily by the closure of a distribution center in Rialto, California.

The decision to close the facility by March 2026 will result in approximately $70 million in additional costs, significantly impacting the company’s previously projected turnaround strategy expenses. Consequently, Under Armour now forecasts an operating loss of up to $240 million for the fiscal year, exceeding its previous estimate of a maximum $214 million loss.

This adjustment translates to a projected loss per share range of 58 cents to 61 cents, widening from the previously anticipated range of 53 cents to 56 cents.

The restructuring plan is being implemented under the leadership of Chief Executive Officer Kevin Plank, who returned to the helm in April. Plank’s focus on cost savings through a comprehensive overhaul of the company’s operating model and supply chain is central to Under Armour’s turnaround efforts.

Following the announcement, Under Armour shares experienced a 2.9% decline in after-hours trading on Monday. This dip compounds a year-to-date decline of 15%. The market reaction reflects investor concern regarding the escalating costs associated with the restructuring process and its potential impact on the company’s financial performance in the short term.