06:24 AM EDT, 09/10/2024 (MT Newswires) -- Under Armour ( UAA ) expects to record a larger full-year net loss than previously estimated as the sportswear company foresees more costs linked to its restructuring plan.

The company anticipates $70 million of expenses mainly related to the shutting down of one of its primary distribution facilities in California by March 2026, it said late Monday. That's set to bring the total pre-tax and related charges of the company's restructuring program to $140 million to $160 million in fiscal 2025 and 2026, compared with the prior forecast of $70 million to $90 million.

Under Armour ( UAA ) now expects up to $75 million in cash-related charges, including $30 million in employee severance and benefits costs, as well as $45 million related to various transformational initiatives. Non-cash charges are pegged at up to $85 million, including $78 million in facility, software and other asset-related costs and impairments.

The sports apparel and footwear maker now projects a net loss of $0.58 to $ 0.61 per share for fiscal 2025 versus the guidance issued last month for a $0.53 to $0.56 loss. It reiterated its per-share adjusted earnings outlook of $0.19 to $0.22. The current consensus on Capital IQ is for a GAAP loss of $0.26 a share and normalized EPS of $0.23.

The company expects a full-year operating loss of $220 million to $240 million, compared with the prior outlook of $194 million to $214 million. Adjusted operating income is still seen at $140 million to $160 million.

The one-time nature of the costs allowed Under Armour ( UAA ) to reaffirm its full-year adjusted EPS and operating income forecasts, Truist Securities said in a client note. "While we have been encouraged by the company's strategic turnaround efforts and willingness to 'rip the band-aid off' as they look to improve the brand's positioning, we maintain our hold rating until we have more visibility into brand improvements," according to the brokerage.

Under Armour ( UAA ) launched its restructuring plan in May to find financial and operational efficiencies. In its fiscal first quarter ended June, the company saw about $34 million of cash and non-cash charges related to the program. It anticipates roughly two-thirds of the expenses under the revised total plan to be incurred by the end of its current fiscal year.

"We continue to proactively identify opportunities to optimize our business to help create a better and stronger Under Armour ( UAA )," Chief Financial Officer David Bergman said in the late Monday statement. "As we work to reconstitute our brand and increase our financial productivity over the long term -- optimizing our supply-chain network will make us a more efficient, uncomplicated, and agile company."

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