Under Armour Expects Bigger Charges From Restructuring Plan



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Under Armour lowered its outlook for its current fiscal year, saying the company’s restructuring plan is going to cost more than management predicted.

The athletic-wear brand said it decided to close a distribution centre in Rialto, California by March 2026, which will add about $70 million in extra expenses to its turnaround strategy.

Under Armour now expects its operating loss in the fiscal year to be as much as $240 million, compared with the previous view of as much as $214 million. Losses per share are expected to be between 58 cents to 61 cents, versus the prior range of 53 to 56 cents.

The Baltimore-based company is reorganizing itself under Chief Executive Officer Kevin Plank, Under Armour’s founder. He retook the top role in April, and is searching for cost savings through an overhaul of the company’s operating model and supply chain.

Shares fell 2.9 percent at 5:45 p.m. in after-market trading in New York on Monday. The stock has declined 15 percent this year through the close.

By Kim Bhasin.

Learn more:

Does Under Armour Need Kevin Plank?

When the American sportswear retailer announced the return of its controversial founder as CEO, investors were perplexed. BoF unpacks why Plank may be back — and the challenges that lie ahead in his bid to transform its fortunes.



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