02:26 PM EDT, 05/16/2024 (MT Newswires) -- Under Armour ( UAA ) Chief Executive Kevin Plank's remodeled sales and earnings per share expectations could lower perceived risk to the outlook and stock movement, Wedbush said in a note Thursday.

The company's "stock could be range-bound in the near-term until evidence of stabilization/improvement in the business becomes evident," the firm added.

The company had a "mis-executed" strategy by competing mainly on price, Plank was quoted as saying.

The restructuring program will focus on re-elevating the brand and product assortment by cutting down stock-keeping units, reducing discounts, renewing attention on men's apparel and refocus channel segmentation strategy, according to the note.

Wedbush said the product revamp could take about 18 months.

Fiscal year 2025 will be a reset year for the company in North America and revenues are expected to decline by 15% to 17% due to a challenging wholesale market, and Under Armour's ( UAA ) missteps in product, marketing and channel segmentation, the firm added. Reduced discounting will also impact sale volumes.

The firm said the company expects international sales to drop by low single digits in fiscal year 2025, and growth in direct-to-consumer business will be offset by declines in wholesale.

Wedbush reduced the price target on Under Armour ( UAA ) to $8 from $10 with an outperform rating.

Price: 6.76, Change: -0.04, Percent Change: -0.59