The stock of Under Armour (UA) is down 8% as the maker of fitness apparel announces a major restructuring plan and lowers its forward guidance.
The restructuring was announced along with the company’s latest financial results.
For its fiscal fourth quarter, Under Armour reported earnings per share (EPS) of $0.11 U.S. That topped Wall Street’s forecast for $0.08 U.S., according to data from FactSet.
Revenue in the quarter totaled $1.33 billion U.S., which matched Wall Street’s expectations.
However, the Baltimore, Maryland-based company lowered its forward guidance and announced a major restructuring plan that will involve charges of as much as $90 million U.S., including severance packages for laid off employees.
In terms of guidance, Under Armour said that for its current fiscal year, it expects revenue to be down at a low-double-digit percentage rate.
The company sees earnings over the next year at between $0.18 U.S. and $0.21 U.S. per share. Analysts had expected earnings of $0.59 U.S. a share.
Prior to today (May 16), Under Armour’s stock had declined nearly 20% on the year and was trading at $6.66 U.S. per share.
