11:06 AM EDT, 05/16/2024 (MT Newswires) -- Under Armour ( UAA ) reported mixed fiscal fourth-quarter results and offered a downbeat outlook on Thursday fueled by ongoing softness in North America, while the sportswear maker launched a restructuring plan that includes expected layoffs.

Revenue fell to $1.33 billion for the three months ended March 31 from $1.4 billion a year earlier and matched the average analyst estimate on Capital IQ. Adjusted earnings per share totaled $0.11, above the Street's view of $0.08 for class A shares.

In North America, Under Armour's ( UAA ) revenue tumbled 10% to $771.9 million. Sales gained 9.5% to $284.1 million in Europe, the Middle East and Africa and about 20% to $50.2 million in Latin America. Gross margin advanced 130 basis points to 46.1% due primarily to lower freight and product costs.

"Amid a challenging retail environment in fiscal 2024 that included high inventories and a consistent drumbeat of promotions -- we demonstrated disciplined expense control and delivered results that were aligned with our previous outlook," Chief Executive Kevin Plank said in a statement.

The company's board approved a restructuring plan to achieve financial and operational efficiencies. Under Armour ( UAA ) expects to incur related charges of roughly $70 million to $90 million that includes severance and other transformational initiatives. The company didn't specify the number of employees that may be affected.

"Due to a confluence of factors, including lower wholesale channel demand and inconsistent execution across our business, we are seizing this critical moment to make proactive decisions to build a premium positioning for our brand, which will pressure our top and bottom line in the near term," Plank said. "Over the next 18 months, there is a significant opportunity to reconstitute Under Armour's ( UAA ) brand strength through achieving more, by doing less and focusing on our core fundamentals."

For fiscal 2025, Under Armour ( UAA ) expects revenue to decline at a low-double-digit percentage range from the $5.7 billion it reported for 2024, which was down 3.4% on a year-over-year basis. The guidance includes an expected 15% to 17% decrease in North America "as the company works to meaningfully reset this business following years of heightened promotional activities," according to the company. It forecasts a low-single-digit decline in its international business due to more conservative macro consumer trends.

Management is forecasting adjusted EPS in the $0.18 to $0.21 range, implying a drop from $0.54 in the year that just ended. The Capital IQ-polled consensus is for revenue of $5.65 billion and normalized EPS for class A shares of $0.54 for the ongoing year.

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