Excluding the midpoint of anticipated restructuring charges and litigation reserve expenses, Under Armour expects adjusted operating income to range between $140 million and $160 million. Additionally, the company’s diluted loss per share is now forecast to be between $0.58 and $0.61, an increase from the previous estimate of $0.53 to $0.56. The company’s adjusted diluted earnings per share are anticipated to be in the range of $0.19 to $0.22, the company said in a press release.

Initially, Under Armour projected pre-tax restructuring and related charges of $70 million to $90 million as part of its fiscal 2025 plan. However, after further evaluation, the company identified an additional $70 million in charges, largely tied to its decision to exit one of its primary distribution facilities located in Rialto, California, by March 2026. With this development, Under Armour now expects total pre-tax restructuring charges to range from $140 million to $160 million for fiscal 2025 and fiscal 2026.

Through the three months ending on June 30, 2024, Under Armour has already incurred approximately $34 million in restructuring and related charges. This includes $19 million in cash charges and $15 million in non-cash charges. The company expects to incur about two-thirds of the total restructuring charges under this revised plan by the end of fiscal year 2025.

"We continue to proactively identify opportunities to optimise our business to help create a better and stronger Under Armour," said Under Armour chief financial officer David Bergman. "As we work to reconstitute our brand and increase our financial productivity over the long term, optimising our supply-chain network will make us a more efficient, uncomplicated, and agile company."

Fibre2Fashion News Desk (DP)