Under Armour forecasts annual sales below estimates

By Thomson Reuters May 16, 2024 | 6:39 AM

(Reuters) – Apparel maker Under Armour forecast its annual revenue below analysts’ expectations on Thursday, signaling soft demand for its sportswear in the U.S. as consumers cut back on discretionary spending in the face of sticky inflation.

The company also outlined a restructuring plan and expects to incur total estimated pre-tax restructuring and related charges of about $70 million to $90 million.

The company expects fiscal 2025 revenue to be down at a low double-digit percentage rate, compared with analysts’ average expectation of a 2.1% rise to $5.83 billion, according to LSEG data.

(Reporting by Juveria Tabassum; Editing by Shilpi Majumdar)