More bad news for retail. According to this CNBC report Under Armour has announced hundreds of layoffs as sales slide.
Under Armour plans to cut about 2 percent of its global workforce as it restructures its business in the face of slumping sales.
On Tuesday, the sports apparel company reported a narrower-than-expected second-quarter loss, but shares fell as the company trimmed its sales forecast for the year.
Here’s what the company reported vs. what Wall Street was expecting:
- Earnings per share: a loss of 3 cents, adjusted, vs. an expected loss of 6 cents, according to Thomson Reuters
- Revenue: $1.088 billion vs. a forecast for $1.077 billion, analysts said
One year ago, Under Armour reported a loss of 12 cents per share on revenue of $1.001 billion.
Under Armour’s stock tumbled more than 8 percent at one point in premarket trading Tuesday after the news. Most recently, shares were down about 6 percent.
Under Armour said it now expects adjusted earnings for the full year to fall within 37 cents and 40 cents per share, excluding any impacts from restructuring. Analysts had been forecasting Under Armour to earn 42 cents a share in 2017, according to Thomson Reuters estimates.
Further, Under Armour said revenue is now expected to grow 9 to 11 percent, lower than its previous forecast of 11 to 12 percent growth.
As part of its restructuring plan, CEO Kevin Plank said that Under Armour intends to increase its speed in getting products to market and expand the retailer’s digital capabilities.
“We’ve identified a number of areas to enhance our operational capabilities, drive process improvement and gain greater efficiencies,” Plank said in a statement.
During the company’s earnings call, Plank said Under Armour’s five focus areas moving forward will be men’s training, women’s, running, basketball and lifestyle. The CEO put extra emphasis behind the retailer’s push in lifestyle.