American sportswear company Under Armour has widened the scope of its fiscal 2025 (FY25) restructuring plan and increased its fiscal 2026 (FY26) adjusted operating income forecast to between $95 million and $110 million, reflecting gains expected from its expanded transformation strategy.

The company previously projected up to $160 million in pre-tax restructuring and related charges. After a further internal review, Under Armour’s board has approved an additional $95 million in actions, taking the total estimated charges to as much as $255 million. The new measures include the separation of the Curry Brand, further contract terminations, incremental asset impairments, and additional employee severance and benefits costs. Most of the financial benefits of these steps are expected to be realised in future periods.

Under Armour has expanded its FY25 restructuring plan, raising total expected charges to up to $255 million and increasing its FY26 adjusted operating income outlook to $95–110 million.
The measures include separating the Curry Brand and asset impairments.
The company had already incurred $147 million by September 2025 and now expects a FY26 GAAP operating loss of $56–71 million.

Under Armour estimated that its total global basketball business, including the Curry Brand, will generate between $100 million and $120 million in revenue in fiscal 2026. The company does not expect the separation of the Curry Brand to materially affect its consolidated financial performance or profitability, Under Armour said in a press release.

The expanded plan comprises up to $107 million in cash-related charges—about $34 million tied to employee severance and benefits, and $73 million linked to various transformational initiatives. Non-cash charges may reach up to $148 million, including $7 million in employee-related costs and $141 million attributed to contract terminations, facilities, software, and other asset impairments.

As of September 30, 2025, Under Armour had incurred approximately $147 million in restructuring-related charges, including $82 million in cash costs and $65 million in non-cash charges. The restructuring programme is expected to be substantially completed by the end of fiscal 2026.

Alongside the restructuring expansion, the company has revised its fiscal 2026 guidance. It now anticipates a GAAP operating loss of between $56 million and $71 million, compared with the earlier expectation of operating income between $19 million and $34 million. Adjusted operating income is now forecast at $95 million to $110 million, up from the previous range of $90 million to $105 million. All other outlook components remain unchanged.

According to the company’s reconciliation, the adjusted outlook reflects the addition of $166 million in restructuring-related charges under the fiscal 2025 plan, aligning with its updated operational strategy for the year ending March 31, 2026, added the release.

Fibre2Fashion News Desk (SG)