Under Armour (UAA.US) expects restructuring costs to double, significantly raising its 2025 fiscal year loss guidance.

Under Armour (UAA.US) updated its restructuring plan for 2025 on Monday, leading to a significant increase in the loss guidance for the 2025 fiscal year. Under Armour expects to incur approximately $140 million to $160 million in pre-tax restructuring and related expenses in the 2025 and 2026 fiscal years; and projects an operating loss of $220 million to $240 million for the 2025 fiscal year, compared to the previous estimate of a loss of $194 million to $214 million. The company's stock price dropped over 4% on Monday. Previously, the company had anticipated pre-tax restructuring and related expenses of approximately $70 million to $90 million, but after further evaluation, they identified $70 million related to costs in exiting a primary distribution facility in California. Therefore, Under Armour now expects to incur approximately $140 million to $160 million in pre-tax restructuring and related expenses in the 2025 and 2026 fiscal years. The company updated its outlook for the 2025 fiscal year, projecting an operating loss of $220 million to $240 million, compared to the previous estimate of a loss of $194 million to $214 million. Diluted loss per share is now expected to be $0.58 to $0.61, compared to the previous estimate of $0.53 to $0.56; adjusted diluted earnings per share are projected to be $0.19 to $0.22.