Under Armour has decided it’s time to make some changes. It’s time for some restructure. They will begin to lay off 280 employees, which equals to around 2% of their entire workforce. Reason being, sale performances have halted and they’re currently experiencing record low shares.
In its second quarter report, Under Armour only reached a revenue of $1.088 billion USD (only 9% growth) compared to a forecasted $1.077 billion USD. As soon as this was unveiled, investors quickly sold shares of UA stock and earnings per share are now at a loss of 3 cents. As of 11 a.m. EST today, the 6% fall puts the Baltimore sportswear company’s stock at $17.04.
One of Under Armour’s most popular streams of revenue is their footwear division, thanks in large part to its partnership with NBA champion Steph Curry. With that being said, even their footwear division saw revenues go down two percent this quarter as well.