Under Armour to cut workforce by 3%; Nike shares way up

Sept. 20 (UPI) -- Sportswear company Under Armour announced Thursday it plans to cut 3 percent of its global workforce as part of a restructuring plan.

The company said in a statement the plan will cost more than first expected.

UA now projects restructuring costs of $200-$220 million, up from previously expected costs in the $190-$210 million range.

It's unclear exactly how many workers will be affected by the layoffs.

"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," the UA statement said.

The restructuring plan came as Under Armour faces slipping sales in North America.

Meanwhile, UA competitor Nike is enjoying a resurgence in its stock value this year. So far it's up 35 percent, The Wall Street Journal reported.

The uptick might be related to Nike's controversial ad campaign recently featuring football player Colin Kaepernick, who began kneeling during the national anthem in 2016 to protest police brutality.

Nike shares fell more than 3 percent but they have rebounded dramatically since the campaign started.

Apex Marketing Group estimates the ads' value at more than $163 million, Bloomberg reported.

"I thought Nike would have problems with the Kaepernick situation. I was wrong," said Eric Aanes, president and founder of Titus Wealth Management. "Their edgy marketing appeared to pay off for them."

Although there's concern e-commerce could hurt sportswear companies like Nike and UA, other companies have managed stock market gains this year -- including Adidas in Europe (25 percent) and Puma (18 percent).