Sportswear maker Under Armour Inc. will cut about 400 jobs, or 3 per cent of its global work force, as part of efforts to cut costs in its struggle to compete with Nike and Germany’s Adidas in North America.
Under Armour has been running a cost-cutting program since the start of the year as results remained patchy and the bankruptcies of a handful of U.S. sporting goods added to its woes.
The company said it expects between US$200-million and US$220-million in expenses related to the restructuring, slightly higher than an earlier estimate.
Under Armour had about 15,800 employees at the end of last year, and the work-force cuts are expected to be completed by March, 2019.
“We continue to make difficult decisions to ensure we are best positioned to succeed,” Under Armour chief financial officer David Bergman said in a statement.
The company now expects annual adjusted earnings of 16 cents to 19 cents a share, compared with a previous estimate of 14 cents to 19 cents. Analysts on average are expecting 16 cents a share, according to Thomson Reuters I/B/E/S.
Under Armour’s Class A shares were up 1 per cent in premarket trading.