Under Armour: sales decline, restructuring in sight
The American sports equipment manufacturer warns that the restructuring project, which aims to improve its operational and financial efficiency, will initially result in charges of between $70 and $90 million, notably linked to job cuts.
This announcement comes as the Baltimore-based group saw its sales decline by 5% to $1.3 billion in the 4th quarter of its 2023/2024 financial year, resulting in an operating loss of $4 million.
For the full year, sales were down by 3%, and this downward trend is set to continue into the new fiscal year, with Under Armour forecasting a decline of between 0% and 5%.
Operating profit, expected to be between $50 and $70 million, is also set to fall sharply from the $230 million recorded last year.
Despite the gloomy outlook, the footwear and sporting goods manufacturer plans to launch a new share buyback program of up to $500 million.
Listed on the New York Stock Exchange, UA shares nibbled a little over 1% following these announcements.
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