Under Armour is preparing to layoff an unspecified number of employees following a drop in sales in North America, the Baltimore-based company’s largest market.

The company’s overall revenues were down 5% to $1.3 billion for the fiscal year ending in 2024. Under Armour expects to spend $70 to $90 million as it restructures operations and finances. That estimate includes $22 million in employee severance and benefits costs, according to Under Armour’s 2025 outlook released Thursday.

Revenues could continue to dip next year into low double-digit percentages, particularly in North America, which is expected to decline 15 to 17%, the outlook states.

Company representatives declined in a statement to say how many employees would be laid off. In a news release, founder and CEO Kevin Plank attributed the restructuring to a “confluence of factors,” including lower wholesale channel demand and inconsistent execution across the business.

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“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 in the statement. “Over the next 18 months, there is a significant opportunity to reconstitute Under Armour’s brand strength through achieving more, by doing less and focusing on our core fundamentals: driving demand through better products and storytelling, running smarter plays like simplifying our operating model and elevating our consumer experience.”

The company is looking to buy back up to $500 million in Class C common stock over the next three years.

Under Armour’s gloomy earnings report comes more than a month after a reshuffling of leadership. Plank stepped down as executive chair of the board of directors in order to resume his role as CEO in April. He succeeded Stephanie Linnartz, the former president of the hotel chain Marriott International, who had been in the position for a little more than a year. That announcement said Linnartz would advise the company through April 30.

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