Investing.com - Under Armour (NYSE:UAA) released its second quarter results, which showed the company posted a smaller-than-expected per share loss while revenue was a slight beat. Even though the latest results topped expectations, the company is planning to lay off about 2 percent of its global workforce as part of a restructuring to adapt to changing business conditions.
Under Armour lost 3 cents per share in the second quarter on revenue of $1.088 billion. The results topped the 6 cents per share loss on revenue of $1.077 billion analysts polled by Thomson Reuters were expecting. Results also improved versus the comparable quarter when Under Armour lost 12 cents per share on revenue of $1.001 billion.
Under Armour said it now expects adjusted full-year earnings to fall in the range of 37 cents and 40 cents per share, excluding any impacts from restructuring. Analysts have estimated that the full year 2017 EPS will come in at 42 cents. Revenue is now expected to grow 9 to 11 percent, lower than the prior forecast for 11 to 12 percent growth.
Looking forward, the company is implementing strategies to improve its results. "We've identified a number of areas to enhance our operational capabilities, drive process improvement and gain greater efficiencies," CEO Kevin Plank said in a statement.
Unfortunately, jobs will be lost as the company restructures. Under Armour plans to cut about 280 jobs, equivalent to about 2% of its workforce. About half of the cuts will take place at the company’s Baltimore headquarters. The company’s growth in North America has stagnated, while international growth is skyrocketing. Under Armour’s second quarter revenue from North America was flat compared to a year ago while international sales rose 57%.