Restructuring becomes more expensive: Under Armour warns of higher losses

Business

Credits: Under Armour.

The US sporting goods manufacturer Under Armour Inc. had to issue a profit warning on Monday evening. According to current information, the ongoing reform measures will have a greater impact on earnings in the 2024/25 financial year than previously expected.

The company cited additional restructuring costs as the reason, which mainly result from the closure of a distribution center in Rialto, California, planned for March 2026. Under Armour now expects restructuring-related charges totaling 140 million to 160 million dollars before taxes for the current and next fiscal years.

Based on the updated cost estimate, the company now expects an operating loss of between $220 million and 240 million dollars (199 million and 217 million euros) for the current fiscal year. Previously, a corresponding loss of between 194 million and 214 million dollars had been forecast. As a result, management now expects a diluted loss per share in the range of 0.58 to 0.61 cents for 2024/25. The previous target was between 0.53 and 0.56 cents.

This article originally appeared on FashionUnited.DE, translated and edited to English.

It was translated using an AI tool called Gemini 1.5. .

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