(CercleFinance.com) – Under Armor announced Thursday the launch of a restructuring plan intended to reduce its costs, while the group predicts a further contraction in its sales for the 2024/2025 financial year.
The American sports equipment manufacturer warns that the restructuring project, which aims to improve its operational and financial efficiency, will initially result in costs of between 70 and 90 million dollars, notably linked to job cuts.
This announcement comes as the Baltimore group saw its turnover fall by 5% to $1.3 billion in the 4th quarter of its 2023/2024 financial year, which resulted in an operational loss of four million dollars.
Over the entire past financial year, its turnover fell by 3%, a decline expected to continue into the new fiscal year since Under Armor says it expects a decline ranging from 0% to 5%.
Expected between 50 and 70 million dollars, operating profit should also be down sharply compared to the 230 million dollars generated in the previous financial year.
Despite its gloomy outlook, the shoe and sporting goods maker plans to launch a new stock buyback program of up to $500 million.
Listed on the New York Stock Exchange, UA shares gained a little more than 1% following these announcements.
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