Why Is Under Armour Stock Sliding Today?
Portfolio Pulse from Lekha Gupta
Under Armour (NYSE:UA) shares are down premarket due to an update on its FY25 restructuring plan, which includes $140-$160 million in charges. The company plans to exit its Rialto, California distribution facility by March 2026. Despite a sales decline, Under Armour beat Q1 estimates but revised its operating loss expectations upwards.
September 10, 2024 | 1:27 pm
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Under Armour's stock is sliding due to an update on its FY25 restructuring plan, which includes significant charges and the exit of a key distribution facility. The company also revised its operating loss expectations upwards.
The announcement of increased restructuring charges and the exit from a primary distribution facility indicates potential operational challenges. The upward revision of operating loss expectations further pressures the stock, leading to a negative short-term impact.
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