Under Armour Inc. has surpassed analysts’ expectations for its second-quarter results, signaling progress in its turnaround strategy under founder Kevin Plank. The company reported stronger-than-expected sales and adjusted earnings for the quarter ending in September, though revenue has declined for six consecutive quarters.
The athletic brand now forecasts an operating loss of up to US $ 196 million for the fiscal year ending in March, an improvement from its earlier projection of a US $ 240 million loss.
Kevin Plank, who returned as CEO in April after stepping down in 2019, is spearheading the company’s restructuring. His strategy focuses on revamping the operating model and supply chain to achieve cost savings. The initiative has already incurred US $ 40 million in restructuring-related expenses, with total charges expected to reach US $ 160 million.
In September, Under Armour announced additional costs after deciding to close a distribution center in California. While the restructuring aims to stabilize operations, the pressure is mounting on Plank to deliver tangible results for investors.
