From CNBC: 2024-05-16 09:49:42

Under Armour reported a 10% drop in sales in North America, predicting further decline in the current fiscal year, resulting in profits plunging over 96% in the fiscal fourth quarter. The restructuring plan, estimated to cost between $70-90 million, will involve layoffs. Shares fell over 2% in morning trading.

Despite Wall Street expectations, Under Armour reported earnings of 11 cents per share, outperforming the anticipated 8 cents. Revenue matched expectations at $1.33 billion. Net income was $6.6 million, a sharp decrease from the previous year. Sales fell to $1.33 billion, with North American sales down 10%.

Under Armour expects North American sales to continue dropping, projecting a 15-17% decline in the current fiscal year. CEO Kevin Plank attributes the decline to lower demand and inconsistent execution. The company plans a pivot towards premium positioning, anticipating a low-double-digit decrease in revenue for the fiscal year.

Stephanie Linnartz, former CEO of Under Armour, stepped down as Plank resumed the position he founded the company in 1996. Linnartz aimed to shift the brand to more athleisure-focused offerings, but her departure led to analysts downgrading Under Armour and lowering price targets. Shares were down about 23% year to date.



Read more at CNBC:: Under Armour (UAA) earnings Q4 2024