Shares of Under Armour Inc. A (NYSE:UAA) moved higher in premarket trading on Friday after the sportswear group reported third-quarter results that came in ahead of expectations and issued stronger-than-forecast profit guidance for the full year.
By 07:10 ET, the stock was up around 1%.
Under Armour posted earnings per share of $0.09 for the quarter, outperforming consensus expectations for a $0.02 loss. Revenue totaled $1.33 billion, down 6% on a currency-neutral basis but slightly ahead of analysts’ estimates of $1.31 billion.
Performance remained mixed by region. North America continued to weigh on results, with revenue down 10% to $757 million. International revenue rose 3% to $577 million, although growth was just 1% on a currency-neutral basis. Within international markets, EMEA posted 2% currency-neutral growth, Asia-Pacific declined 5%, and Latin America rose 13%.
“Our third quarter adjusted operating results exceeded expectations, and despite a few unfortunate, non-recurring impacts, we’re encouraged by the progress we’re making in the business to reignite brand momentum,” said Under Armour President and CEO Kevin Plank.
“In North America, we believe the December quarter marked the most challenging phase of our business reset, and we expect greater stability ahead as we build on this progress globally.”
Adjusted operating income reached $26 million, excluding litigation reserve expenses as well as transformation and restructuring charges. Gross margin fell 310 basis points to 44.4%, largely reflecting the impact of higher tariffs.
Looking ahead, Under Armour now expects fiscal 2026 EPS of $0.10 to $0.11, comfortably above the average analyst forecast of $0.05. The company projects revenue to decline by about 4% for the year, slightly better than its previous guidance for a 4% to 5% drop.
Gross margin is expected to contract by roughly 190 basis points, in line with the lower end of the prior forecast range of 190 to 210 basis points. Management cited higher U.S. tariffs, unfavorable channel and regional mix, and pricing pressures as headwinds, partially offset by favorable foreign exchange movements and improved product mix.