Under Armour (UAA.US) expects restructuring costs to double, significantly raises loss guidance for fiscal 2025
1min read Zhitong Finance learned that Under Armour (UAA.US) updated its 2025 restructuring plan on Monday, significantly raising its loss guidance for fiscal 2025. The company expects to generate about $140 million to $160 million in pre-tax restructuring and related expenses in 2025 and 2026; and said it expects its operating loss in 2025 to be between $220 million and $240 million, compared with its previous expectation of a loss of $194 million to $214 million. Its stock price fell more than 4% on Monday.
The company previously expected to generate about $70 million to $90 million in pre-tax restructuring and related expenses, but after further assessment, it determined $70 million in expenses related to exiting its major distribution facility in California. Therefore, Under Armour expects to generate about $140 million to $160 million in pre-tax restructuring and related expenses in 2025 and 2026.
The company updated its 2025 outlook and said it expects its operating loss to be between $220 million and $240 million, compared with its previous expectation of a loss of $194 million to $214 million. Its diluted loss per share is expected to be $0.58 to $0.61, compared with its previous expectation of a loss of $0.53 to $0.56; its adjusted diluted earnings per share is expected to be $0.19 to $0.22.