On Thursday, Under Armour announced the launch of a restructuring plan designed to reduce costs, as the group predicts a further contraction in sales for the 2024/2025 financial year.

The American sports equipment manufacturer warns that the restructuring project, which aims to improve its operational and financial efficiency, will initially result in charges of between $70 and $90 million, notably linked to job cuts.

This announcement comes as the Baltimore-based group saw its sales decline by 5% to $1.3 billion in the 4th quarter of its 2023/2024 financial year, resulting in an operating loss of $4 million.

For the full year, sales were down by 3%, and this downward trend is set to continue into the new fiscal year, with Under Armour forecasting a decline of between 0% and 5%.

Operating profit, expected to be between $50 and $70 million, is also set to fall sharply from the $230 million recorded last year.

Despite the gloomy outlook, the footwear and sporting goods manufacturer plans to launch a new share buyback program of up to $500 million.

Listed on the New York Stock Exchange, UA shares nibbled a little over 1% following these announcements.

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