Under Armour Shares Fall 9% After Company Announces Restructuring, Job Cuts
Under Armour Inc. shares dropped more than 9% in premarket trade on Tuesday after the company lowered its full-year outlook and announced job cuts. The athletic apparel company reported a net loss of $12.3 million, or 3 cents per share, compared with a loss of $52.7 million, or 12 cents per share in the year-earlier period. FactSet's consensus was for a loss of 6 cents per share. Under Armour revenue was $1.09 billion, up from last year's $1.00 billion during the same quarter, and just above the FactSet consensus of $1.08 billion. Under Armour announced a restructuring play that includes job the company, including job cuts. The company said it will incur restructuring charges of about $110 million to $130 million. The company also lowered its expectations for full year revenue growth, forecasting growth of 9% to 11%, compared with its previous expectation of 11% to 12%. Earnings per share for the year, excluding the impact from restructuring, are expected to come in at a range of 37 cents to 40 cents. FactSet expected per-share earnings of 42 cents. Shares of Under Armour are down more than 285 in the year to date, while the S&P 500 index is up more than 10%
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