Under Armour Expands Restructuring

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Approximately 600 Under Armour corporate employees, some 11.8 percent of its 5100 strong corporate workforce as of Dec. 31, 2019, are losing their jobs at the Baltimore-based company. The job cuts, expected to cost Under Armour $30 million in employee severance and benefit costs, are part a widened restructuring that will results in $40-60 million in pre-tax benefits for the company this fiscal year.

Under Armour’s total restructuring, now forecast to cost $550-600 million on a pre-tax basis, also includes $135 million for contract terminations and a $291 million impairment that was taken earlier this year that is related to its New York City flagship store. The company released details in a public filing earlier this month.

During its most recent earnings call in late July, Under Armour senior executives voiced eagerness to move ahead with a brand reset strategy focused on “digital first” and “premium (selling) environment” planks. The company confirmed the off-price distribution channel would account for a “mid-single digit” percentage of its FY20 global sales.

North American revenues slipped 45 percent to $450 million in the period ended June 30 as global footwear sales declined 35 percent to $185 million.

As of December 31, 2019, Under Armour  had approximately 16,400 employees, including approximately 11,300 in its brand and factory house stores and approximately 1500 at its distribution facilities. Approximately 7000 of employees were full-time.

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Share:

Approximately 600 Under Armour corporate employees, some 11.8 percent of its 5100 strong corporate workforce as of Dec. 31, 2019, are losing their jobs at the Baltimore-based company. The job cuts, expected to cost Under Armour $30 million in employee severance and benefit costs, are part a widened restructuring that will results in $40-60 million in pre-tax benefits for the company this fiscal year.

Under Armour’s total restructuring, now forecast to cost $550-600 million on a pre-tax basis, also includes $135 million for contract terminations and a $291 million impairment that was taken earlier this year that is related to its New York City flagship store. The company released details in a public filing earlier this month.

During its most recent earnings call in late July, Under Armour senior executives voiced eagerness to move ahead with a brand reset strategy focused on “digital first” and “premium (selling) environment” planks. The company confirmed the off-price distribution channel would account for a “mid-single digit” percentage of its FY20 global sales.

North American revenues slipped 45 percent to $450 million in the period ended June 30 as global footwear sales declined 35 percent to $185 million.

As of December 31, 2019, Under Armour  had approximately 16,400 employees, including approximately 11,300 in its brand and factory house stores and approximately 1500 at its distribution facilities. Approximately 7000 of employees were full-time.

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