Under Armour Lowers Outlook, Cutting About 280 Jobs

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.

Mnet 175327 Under Armour Logo

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.

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