Led by Founder and CEO Kevin Plank, Under Armour is going through a restructuring as a result of dwindling sales and will lay off an undisclosed number of employees. The Baltimore-based company plans to spend between $7 million and $15 million in worker severance and benefit costs.
Under Armour’s global revenue dropped 5% to $1.3 billion in the three-month period ending March 31, while North American sales fell 10% to $772 million. The sportswear company also plans to return focus to men’s apparel, a segment that the company took its “eye off of,” Plank told analysts on an earning call.
“We will rectify this,” Plank told the analysts, noting that “this focus does not mean that we are deprioritizing our footwear or women’s business per se. But from a sequencing perspective, men’s apparel will be our highest priority.”
