Summary
- I discuss UA's latest update to a restructuring program which has now ballooned to $200-220m.
- As well as UA's delayed response to a recent SEC query.
- I also lay out the many concerns I have with UA's governance from its Board and auditor to its CEO.
- UA's busted growth model cannot be masked forever.
“I never want to be beholden to a vote of some board or politics or anyone else.”- Kevin Plank
Sometime last month, Under Armour (UA, UAA) posted the latest in a long line of restructuring updates (fifth within a year), with the 2018 restructuring program now running at $200m-$220m (from $190m-$210m). That’s another $10m to the growing pile of one-offs, and at some point, some tough questions will have to be asked. In the meantime, here’s UA’s reasoning behind the latest update:
“Following further evaluation, the company has identified approximately $10 million of cash severance charges related to an approximate 3 percent reduction in its global workforce.”
With the latest update on the board, I think it’s an opportune time to shed some light not just on the latest restructuring attempt, but also the various governance deficiencies within UA which have enabled the never-ending restructuring "one-offs".
