Under Armour Inc. (NYSE: UAA) shares made a solid gain on Thursday after the company announced a restructuring plan and a new full-year outlook. As part of this restructuring, the firm is cutting about 400 jobs as well, or 3% of its total workforce.

Previously, the company expected to incur total estimated pretax restructuring and related charges of roughly $190 million to $210 million in connection with its 2018 restructuring plan. Following further evaluation, the company has identified $10 million of cash severance charges related to an approximate 3% reduction in its global workforce. Accordingly, it now expects about $200 million to $220 million of pretax restructuring and related charges to be incurred in 2018. The reduction in workforce is expected to be completed by March 31, 2019, and represents the final component and update to the company’s 2018 restructuring plan.

In terms of the outlook, the operating loss is now expected to be approximately $60 million, versus the previous range of $50 million to $60 million. Excluding the impact of the restructuring plan, adjusted operating income is now expected to be $140 million to $160 million, compared with the prior expectation of $130 million to $160 million.

Separately, EPS is now expected to be in the range of $0.16 to $0.19. The previously expected range was $0.14 to $0.19. Consensus estimates call for $0.16 in EPS and $5.18 billion in revenue for the full fiscal year.

Wedbush was quick to weigh in on Under Armour, and reiterated a Neutral rating with an $18 price target. The firm had this to say:

Clearly the company is looking to rightsize its operating structure (up to $220 million in charges this year alone), with the final phase of the plan announced today. However, there are still issues around product demand in North America and it remains uncertain how quickly an EBIT margin recapture story can develop (currently 3% vs 8.7% in FY16). While the narrowing of the adjusted EPS outlook is encouraging, it is not a measured inflection for the brand, in our view. It is also questionable why the upper end of the range was left unchanged, possibly reflecting investments and caution around how the critical 4Q will unfold for the company.

Shares of Under Armour were last seen up 5% at $19.77 on Thursday, with a consensus analyst price target of $19.07 and a 52-week trading range of $11.40 to $24.69.

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