Under Armour is not having a brilliant year. With challenges including a survey that ranked its sneakers uncool and a stock-shattering Kevin Durant diss, the company had to enact layoffs due to lackluster sales.
Although the company enjoyed some success, like seeing The Rock’s sneaker sell out immediately and Stephen Curry’s Curry 4 predicted as the #1 basketball sneaker, the company reports that revenue has fallen by 5%, down to $1.4 billion USD. International sales rose up by 35% but domestic sales tumbled by 12%. Furthermore, the company is incurring costs due to a planned restructuring, which could run up costs around $140 million USD to $150 million USD. In light of these concerns, the company has refocused its expectations for 2017’s net revenue and gross margin down from where it expected to end the year.