BALTIMORE — Under Armour is cutting approximately 280 jobs from its global workforce and lowering its full-year revenue outlook, overshadowing a second-quarter performance that topped most expecations.
Shares tumbled more than 7 percent in premarket trading Tuesday.
A board-approved restructuring plan will come with about $110 million to $130 million in related charges this year. That includes approximately $15 million in employee severance and benefits costs.
Under Armour Inc. now expects full-year revenue growth of 9 percent to 11 percent, down from a previous outlook of 11 percent to 12 percent growth. The chain foresees full-year adjusted earnings between 37 and 40 cents per share.
For the quarter ended June 30, the sports clothing and accessories company lost $12.3 million, or 3 cents per share. That compares with a loss of $52.7 million, or 12 cents per share, a year earlier.
That's better than the loss of 6 cents per share expected by analysts, according to a poll by Zacks Investment Research.
Revenue for the Baltimore company climbed to $1.09 billion, from $1 billion, squeaking by Wall Street projections.