Hoping to regain its financial footing, Under Armour on Tuesday announced a job-shedding restructuring plan that will see 280 employees get their pink slips, The Baltimore Sun reported.
The plan comes after a second-consecutive money-losing quarter. Despite a 9 percent uptick in sales, the company saw a loss of $12 million in the second quarter of 2017, or 3 cents per share, The Sun said.
In late April, the Baltimore-based company announced its first-ever quarterly loss, an announcement greeted on Wall Street with an actual uptick in the company’s stock price, as the $2.3-million loss was actually lower than analysts had predicted, CNBC reported at the time.
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By contrast, Tuesday’s earnings and restructuring announcements have sent Under Armour shares down roughly 8 percent as of the publication of this article. The stock is trading at $16.67, 40 cents more than its 52-week low.
Under Armour founder Kevin Plank sounded an optimistic note about his company’s future.
“We enjoyed hyper-growth for several years and I want to be clear we still believe we’re a growth company,” Mr. Plank said, ABC News reported.
He predicted the company would emerge ”[s]tronger, faster, smarter,” The Sun said.
“That’s the goal. That’s our objective,” he said.
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