Under Armour raises full-year income guidance amid restructuring push

Investing.com - Under Armour (NYSE: UAA) has lifted its profit outlook for its current fiscal year, as the athletic apparel maker works through a pricey overhaul of its operations.

Baltimore-based Under Armour previously announced a plan to focus its operations on its core business, with Chief Executive Kevin Plank arguing that a host of company initiatives had strained its resources.

As part of the changes, the group slashed promotional activity, scaled down its inventory and reduced headcount. It has also moved to increase sales of higher-margin items like men's apparel.

Yet the shift has pushed up pre-tax restructuring charges to a range of $140 million to $160 million in its 2025 and 2026 fiscal years, the company said in September. The prior forecast for these costs stretched from almost $70 million to $90 million.

Still, Under Armour has raised its projected range for annual adjusted per-share income to between $0.24 to $0.27, versus an earlier estimate of $0.19 to $0.21.

In its second quarter, net revenue fell by 11% to $1.40 billion, just outpacing expectations, while operating income jumped by 19% versus the year-ago period to $173.1 million.

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