Under Armour recently downgraded its 2025 fiscal outlook with a larger net loss due to higher than expected re-structuring costs.
Founded by Kevin Plank back in 1996, Under Armour rose to fame for its ‘sweat wicking’ fabric technology across its performance apparel. With its roots firmly in American football, Under Armour had its first IPO on the Nasdaq in 2005, initially raising $153 million. From sponsoring Major League Baseball to dropping their own range of technical trainers it would be fair to say the Baltimore based brand has become a household name. Here in the UK, the American sportswear brand found a slightly different home on 110 sporting’ Scousers that made it one of their own in a pre-pandemic era, just like the more recent ON running trainer craze in the Mersey city. Moving into the more financial side of things, Under Armour recently announced they were expecting a larger net loss for its fiscal 2025 outlook due to its re-structuring plan. Re-structuring costs are now expected to reach a total of between $140 million to $160 million as oppose to $70 million to $90 million as previously estimated. Share prices of Under Armour (UAA) also dipped by around 4% yesterday after the Baltimore based brand released the news.
After updating its fiscal 2025 outlook, Under Armour now expects an operating loss of between $220 million to $240 million compared to the previous estimations of $194 million to $214 million. Increased costs include around $30 million for employee benefits as well as $78 million for facility, software and other asset-related charges. Earlier in the year Under Armour also reported an operating loss of $300 million as sales dropped by 10% to $1.2 billion.
We continue to proactively identify opportunities to optimize our business to help create a better and stronger Under Armour. As we work to reconstitute our brand and increase our financial productivity over the long term, optimizing our supply-chain network will make us a more efficient, uncomplicated and agile company.
David Bergman – Chief Financial Officer Under Armour
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