Under Armour Updates 2018 Restructuring Plan, Outlook

(RTTNews) - Under Armour Inc. (UA, UAA) announced an update to its 2018 restructuring plan based on an organizational and process redesign intended to optimize the company's strategic growth initiatives and overall business performance.

Previously, the company expected to incur total estimated pre-tax restructuring and related charges of about $190 million to $210 million in connection with its 2018 restructuring plan. Following further evaluation, the company has identified approximately $10 million of cash severance charges related to an approximate 3 percent reduction in its global workforce. Accordingly, it now expects approximately $200 million to $220 million of pre-tax restructuring and related charges to be incurred in 2018.

The reduction in workforce is expected to be completed by March 31, 2019 and represents the final component and update to the company's 2018 restructuring plan.

For its full year 2018 outlook, the company now expects adjusted operating income, excluding the impact of the restructuring plan, to be $140 million to $160 million compared to the prior expectation of $130 million to $160 million.

Annual operating loss is now expected to be approximately $60 million versus the previous range of $50 million to $60 million.

Excluding the impact of the restructuring efforts, annual adjusted earnings per share is now expected to be in the range of $0.16 to $0.19 versus the previously expected range of $0.14 to $0.19.