Shares of Under Armour (NYSE: UA) slumped 9.6% on Tuesday as of 12:17 p.m. ET.

The athletic apparel and shoe company has had a tough few years, as growth stalled out and profits have taken a hit, with operating profits swinging to losses in 2024 for the first time since the pandemic.

But Under Armour would have actually been profitable this past quarter if not for large transformation and restructuring expenses taken, as CEO Kevin Plank attempts to reposition the business as a lower-volume but full-priced premium brand.

However, yesterday evening, Under Armour said those restructuring charges would go even higher this year and next, souring investors today.

"Following further evaluation..."

On Monday evening, Under Armour gave an update to its outlook for fiscal 2025, which ends next March. The company increased its projection for operating losses in the coming fiscal year, increasing the company's projected operating loss to a range of $220 million to $240 million, versus an initial projection of $194 million to $214 million.

The difference from the prior outlook is entirely due to more restructuring opportunities. Management noted it had found additional savings largely related to the closing of one of its distribution facilities in Rialto, California. That and other cost-saving measures will cost an additional $70 million in restructuring charges by March of 2026.

On the company's August earnings release, management had forecast $70 million to $90 million of restructuring charges in the year ahead, consisting of severance and other investments and impairments. So, this new "savings" will increase upfront restructuring costs to $140 million to $160 million over the next two years.

Investors apparently didn't enjoy the "lowered" profit outlook. But the reality may not be as dire as today's stock market action indicates.

Adjusted figures haven't changed

While the company's generally accepted accounting principles (GAAP) losses per share are set to increase, it should be noted that management didn't change the forward outlook for non-GAAP (adjusted) operating income, which excludes these one-time charges, of $140 million to $160 million in the coming fiscal year.

When Under Armour delivered that guidance back on its August earnings release, the stock soared. But it's giving back those gains today. Meanwhile, once these restructuring charges are behind the company, Under Armour's operations should have a lower cost base.

So, there's no real reason for such a large drop today for the long-term investor. At a $2.8 billion market cap, the stock currently trades around 20 times that forward adjusted profit guidance. That's not especially cheap nor expensive. But if you were a bull or bear on Under Armour's transformation yesterday, you shouldn't feel any different today.