Under Armour updates restructuring plan for fiscal 2025 in Baltimore
- Under Armour announced an update to its Fiscal 2025 restructuring plan on September 9, 2024.
- The company now expects pre-tax restructuring charges to be approximately $140 million to $160 million, significantly higher than the previous estimate of $70 million to $90 million.
- These changes reflect Under Armour's ongoing efforts to optimize its business and improve financial performance amid challenging market conditions.
On September 9, 2024, Under Armour, Inc. provided an update regarding its restructuring plan for Fiscal 2025, revealing a significant increase in anticipated pre-tax restructuring charges. The company now estimates these charges to be between $140 million and $160 million, a notable rise from the earlier forecast of $70 million to $90 million. This adjustment underscores the company's proactive approach to addressing operational inefficiencies and financial pressures. The restructuring plan includes up to $75 million in cash-related charges, which encompasses employee severance and benefits costs, as well as funds allocated for various transformational initiatives. Additionally, the company anticipates up to $85 million in non-cash charges, primarily related to facility and asset impairments. As a result of these changes, Under Armour has revised its Fiscal 2025 outlook, projecting an operating loss of $220 million to $240 million, compared to the previous expectation of $194 million to $214 million. The updated outlook reflects the ongoing challenges in the market, including increased competition and fluctuating consumer demand. Under Armour's Chief Financial Officer, David Bergman, emphasized the company's commitment to identifying opportunities for optimization to strengthen its overall business. The restructuring efforts are part of a broader strategy to enhance operational efficiency and improve financial performance in a competitive landscape.