Under Armour restructures plan to optimise growth in FY18

22 Sep '18

2 min read

Courtesy: Under Armour

Under Armour, a leading marketer and distributor of branded performance athletic apparel, footwear and accessories, has announced an update to its restructuring plan for fiscal 2018 based on an organisational and process redesign. The modification is aimed to optimise the company's strategic growth initiatives and overall business performance.

"In our relentless pursuit of running a more operationally excellent company, we continue to make difficult decisions to ensure we are best positioned to succeed," said Under Armour chief financial officer David Bergman. "This redesign will help simplify the organisation for smarter, faster execution, capture additional cost efficiencies, and shift resources to drive greater operating leverage as we move into 2019 and beyond."

Previously, the company expected to incur total estimated pre-tax restructuring and related charges of approximately $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 fiscal 2018, 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 plan, adjusted operating income is now expected to be $140 million to $160 million as against the prior expectation of $130 million to $160 million. (RR)

Fibre2Fashion News Desk – India

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