Under Armour is closing a distribution center in Rialto, Calif., and lowering its fiscal 2025 expectations.
of about $70 million to $90 million as a result of its fiscal 2025 restructuring plan. However, a decision to close one of its primary distribution facilities in Rialto, Calif., is now expected to result in $70 million in charges, bringing the total to between $140 million and $160 million in fiscal 2025 and fiscal 2026.
That includes cash charges of about $30 million in employee severance and benefits costs and $45 million related to what it called “various transformational initiatives.” There are also expected to be up to $85 million in noncash charges, including about $7 million in employee severance and benefits costs and $78 million in facility, software and other asset-related charges and impairments, the company said.,” said chief financial officer David Bergman.
As a result of this move, Under Armour updated its fiscal 2025 outlook and is now expecting an operating loss of $220 million to $240 million versus the previous expectation of $194 million to $214 million. Adjusted operating income is expected to be $140 million to $160 million. The diluted loss per share is expected to be 58 cents to 61 cents, up from the 53 cents to 56 cents previously projected. Adjusted diluted, who returned to the top post at the company he founded in March, outlined a restructuring plan that would include an unspecified number of layoffs, a 25 percent reduction in product, a renewed focus on its historic strength in menswear, substantially less discounting and a new communication strategy to get the message out to consumers.
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