Under Armour Raises Profit Expectations Despite Sales Decline

The athletic apparel company beats third-quarter earnings estimates, revising its full-year outlook upwards amidst a challenging retail environment.

Under Armour's third-quarter earnings per share of 19 cents exceeded Wall Street's expectations of 11 cents, despite a 6% drop in revenue to $1.49 billion.
The company now forecasts full-year sales to decline by 3% to 4%, adjusting its earnings per share projection to 57 cents to 59 cents, up from the previous range of 47 cents to 51 cents.
Gross margin improved by 1 percentage point to 45.2%, attributed to lower freight expenses and despite increased promotions and off-price channel sales.
Wholesale revenue fell 13% due to reduced orders from partners like Dick's Sporting Goods and Kohl's, while direct-to-consumer sales rose 4%, driven by a 5% increase in store revenue.
Under Armour's CEO Stephanie Linnartz emphasizes the company's efforts towards improved revenue growth and value creation, highlighting the role of a strengthened leadership team in these initiatives.