Due to an anticipated $70 million in additional charges related to a decision to close a distribution facility in Rialto, CA by March 2026, Under Armour has increased its projected pre-tax restructuring cost range to $140 to $160 million.
Charges, which will be incurred in FY25 and FY26, include $75 million in cash expenses, including about $30 million in employee severance and benefit costs and $85 million in non-cash expenses related to facility, software, and other asset-related charges and impairments.
Recently we spoke to Under Armour’s Senior Vice President and EMEA Managing Director Kevin Ross. You can read the interview here.
Due to these expected actions, the Baltimore-based group has revised its FY25 outlook. The annual operating loss range has been increased by 12 to 13 percent to a range between $220 and $240 million. Adjusted operating income is now pegged at $140 to $160 million.
