Under Armour is laying off workers as retailer says North America sales will plunge this year

[mahatmakanejeeves]

I put this in the Maryland forum, because Under Armour's roots are in Maryland.

RETAIL
Under Armour is laying off workers as retailer says North America sales will plunge this year
PUBLISHED THU, MAY 16 2024 • 8:38 AM EDT | UPDATED 4 MIN AGO

Gabrielle Fonrouge
@IN/GABRIELLE-FONROUGE
@FONROUGEGAB

KEY POINTS
• Under Armour said sales in its largest market, North America, fell 10% and the retailer expects them to get worse during its current fiscal year.
• The athletic apparel company also announced a broad restructuring plan that will include an unspecified number of job cuts.
• Founder and CEO Kevin Plank blamed the rough quarter on “a confluence of factors, including lower wholesale channel demand and inconsistent execution across our business.”

Under Armour announced a broad restructuring plan on Thursday as it said sales in its largest market, North America, plunged 10% and predicted the trend will get worse throughout its current fiscal year.

The athletic apparel retailer also saw profits sink by more than 96% during its fiscal fourth quarter, compared with the year-ago period.

It’s unclear how many employees Under Armour will lay off as part of the restructuring, but the plan is expected to cost between $70 million and $90 million, a portion of which will be used for employee severance and benefits costs. The company declined to share more information with CNBC about its restructuring.

The company’s shares dropped about 10% in premarket trading.

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