Under Armour, Inc. has announced an update to its restructuring plan for Fiscal 2025, outlining additional initiatives to enhance its strategic supply chain capabilities and bolster overall business performance. The company initially projected pre-tax restructuring charges of $70-$90 million, but after further analysis, it has identified an additional $70 million in charges, primarily linked to the decision to exit a major distribution facility in Rialto, California by March 2026. As a result, Under Armour now expects to incur $140-$160 million in pre-tax restructuring charges throughout Fiscal 2025 and Fiscal 2026, including both cash and non-cash expenses related to employee severance, transformational initiatives, and facility closures.
This restructuring plan is designed to improve Under Armour’s efficiency and agility. As Under Armour’s Chief Financial Officer, David Bergman, stated, “We continue to proactively identify opportunities to optimize our business to help create a better and stronger Under Armour.” By streamlining its supply chain, the company aims to become a more efficient, streamlined, and responsive organization.
Reflecting the expansion of the restructuring plan and its impact on Fiscal 2025, the company has updated its financial outlook. The updated outlook anticipates an operating loss of $220-$240 million for Fiscal 2025, compared to the previous projection of $194-$214 million. Adjusted operating income, excluding the anticipated restructuring charges and litigation reserve expense, is expected to be $140-$160 million. The company also forecasts a diluted loss per share of $0.58-$0.61, compared to the previous estimate of $0.53-$0.56. Adjusted diluted earnings per share are projected to be $0.19-$0.22.
These revised expectations underscore Under Armour’s commitment to its strategic transformation, which includes enhancing its brand, boosting financial productivity, and optimizing its operational efficiency. The company believes that these steps will lead to a more sustainable and successful future for Under Armour.
