RETAIL
Under Armour is laying off workers as retailer says North America sales will plunge this year
PUBLISHED THU, MAY 16 2024 • 8:38 AM EDT | UPDATED 4 MIN AGO

Gabrielle Fonrouge
@IN/GABRIELLE-FONROUGE
@FONROUGEGAB

KEY POINTS
• Under Armour said sales in its largest market, North America, fell 10% and the retailer expects them to get worse during its current fiscal year.
• The athletic apparel company also announced a broad restructuring plan that will include an unspecified number of job cuts.
• Founder and CEO Kevin Plank blamed the rough quarter on “a confluence of factors, including lower wholesale channel demand and inconsistent execution across our business.”

Under Armour announced a broad restructuring plan on Thursday as it said sales in its largest market, North America, plunged 10% and predicted the trend will get worse throughout its current fiscal year.

The athletic apparel retailer also saw profits sink by more than 96% during its fiscal fourth quarter, compared with the year-ago period.

It’s unclear how many employees Under Armour will lay off as part of the restructuring, but the plan is expected to cost between $70 million and $90 million, a portion of which will be used for employee severance and benefits costs. The company declined to share more information with CNBC about its restructuring.

The company’s shares dropped about 10% in premarket trading.

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