Under Armour, Inc. ( UAA ) shares are trading lower premarket Tuesday. The company disclosed an update to its FY25 restructuring plan, introducing new initiatives to enhance its strategic supply chain capabilities and overall business performance.

After further evaluation, the company identified around $70 million in charges, mainly due to the decision to exit its primary distribution facility in Rialto, California, by March 2026.

Under Armour ( UAA ) now expects pre-tax restructuring charges of $140 million to $160 million for FY25 and FY26.

This includes up to $75 million in cash charges—$30 million for employee severance and benefits and $45 million for transformational initiatives—and up to $85 million in non-cash charges—$7 million for employee severance and benefits and $78 million for facility, software, and asset impairments.

In May 2024, Under Armour ( UAA ) announced a restructuring plan estimated at $70 million – $90 million for its FY25 plan.

Through June 30, 2024, the company had incurred about $34 million in restructuring and related charges, comprising $19 million in cash and $15 million in non-cash. The company expects to incur approximately two-thirds of the revised total charges by the end of FY25.

Outlook: The company continues to expect adjusted operating income of $140 million-$160 million and adjusted EPS of $0.19 to $0.22 (vs. consensus of $0.24).

Under Armour ( UAA ) Chief Financial Officer David Bergman said, “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.”

However, the company updated the expectations for operating loss to be $220 million to $240 million versus the previous expectation of $194 million to $214 million, and loss per share to be $0.58 to $ 0.61 versus the prior expectation of $0.53 to $0.56.

In August, the company reported a first-quarter sales decline of 10.1% year-over-year to $1.183 billion, beating the analyst consensus estimate of $1.140 billion and adjusted EPS of $0.01, above the $0.08 consensus loss.

Price Action: UA shares are down 2.37% at $7.01 premarket at the last check Tuesday.

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