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Under Armour Announces Additional 2018 Restructuring Plan - Quick Facts

While reporting its fourth-quarter financial results today, Under Armour Inc. (UA) announced an additional 2018 restructuring plan that identifies further opportunities to optimize operations.

In conjunction with this plan, the company expects approximately $110 million to $130 million of pre-tax restructuring and related charges to be incurred.

This includes up to $105 million in cash related charges, consisting of up to $55 million in facility and lease terminations, and up to $50 million in contract termination and other restructuring charges.

It also includes up to $25 million in non-cash charges comprised of up to $10 million of inventory related charges and up to $15 million of asset related impairments.

Based on the restructuring efforts in 2017 and 2018, the company anticipates a minimum of $75 million in savings annually from these efforts in 2019 and beyond.

For fiscal 2018, Under Armour forecast net revenue to increase at a low single-digit percentage rate, reflecting a mid-single-digit decline in North America and international growth of greater than 25 percent. The company also expects adjusted earnings per share in a range of $0.14 to $0.19.

On average, analysts polled by Thomson Reuters expect the company to earn $0.26 per share for the year on revenues of $5.24 billion. Analysts' estimates typically exclude special items.

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