Under Armour lowered its outlook for its current fiscal year, saying the companyâs 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 Armourâs founder. He retook the top role in April, and is searching for cost savings through an overhaul of the companyâs 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.
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