North America sales for Under Armour are predicted to decline this year, resulting in layoffs for the company's workers.

• North America is Under Armour's largest market, and sales there decreased by 10%. The company anticipates that sales will decline further during its current fiscal year.
• The company announced a restructuring plan that may result in job cuts.
• The rough quarter was attributed to "a combination of factors, including reduced demand from wholesale channels and inconsistent business execution," by Kevin Plank, the founder and CEO.

On Thursday, the company announced a broad restructuring plan due to a 10% decline in sales in its largest market, North America, and predicted that the trend will continue to worsen throughout its current fiscal year.

During the fourth fiscal quarter, the athletic apparel retailer experienced a decline in profits of over 96% compared to the previous year.

The number of employees Under Armour will lay off as part of the restructuring is uncertain, but the plan is estimated to cost between $70 million and $90 million, some of which will be used for employee severance and benefits expenses. Under Armour declined to provide more details about its restructuring to CNBC.

Shares dropped about 10% in premarket trading.

In its fourth fiscal quarter, the athletic apparel retailer performed better than anticipated by Wall Street, as per a survey of analysts by LSEG.

• Earnings per share: 11 cents adjusted vs. 8 cents expected
• Revenue: $1.33 billion vs. $1.33 billion expected

The company's net income for the three-month period ending March 31 was $6.6 million, or 2 cents per share, compared to $170.6 million, or 38 cents per share, in the same period a year ago. However, excluding one-time items, the company's earnings per share were 11 cents.

A year ago, sales were $1.4 billion, but they decreased to $1.33 billion, a 5% drop.

In Q1, North America sales fell 10% to $772 million, below the $780 million analysts predicted, as per StreetAccount.

The company anticipates a drop of between 15% and 17% in sales in North America during its current fiscal year.

As a result of various factors, such as decreased demand from wholesale channels and inconsistent business execution, we are taking proactive measures to establish a premium brand positioning, which will positively impact our revenue in the short term, as stated by founder and CEO Kevin Plank.

"Over the next 18 months, there is a significant opportunity to strengthen Under Armour's brand by focusing on our core fundamentals and doing less," he said.

Despite analysts predicting a 2.1% growth in sales, Under Armour anticipates a "low-double-digit percentage rate" decline in revenue during its current fiscal year, as reported by LSEG.

The company intends to reduce promotions and discounts, anticipating that this will increase its gross margin by 0.75 to 1 percentage point during the fiscal year.

LSEG's earnings per share are expected to be between 2 cents and 5 cents, with adjusted earnings per share ranging from 18 cents to 21 cents, despite analysts predicting earnings per share of 52 cents.

The rough quarter for Under Armour occurs two months after the company announced that former Marriott executive Stephanie Linnartz would be stepping down as CEO after just over a year on the job, with Kevin Plank once again taking the reins of the company he founded in 1996.

In less than two years, the company has gone through two CEOs, with Linnartz being the second.

She was hired to balance her lack of experience in the retail industry with her expertise in building out Marriott's Bonvoy loyalty program and driving digital revenue for the hotel giant. Prior to her departure, she successfully revamped Under Armour's C-suite and expanded its loyalty program. She aimed to shift the brand's product line to a more athleisure-focused offering with a greater emphasis on stylish options for women.

Before her plans could be implemented, she was removed from her position. After Linnartz's departure was announced, analysts lowered their price targets for Under Armour, causing the company's shares to drop about 23% year to date.

Read the full earnings release here.