Under Armour reported better-than-expected third-quarter results and raised its full-year earnings outlook, even as revenue continued to decline and restructuring costs increased.
The athletic apparel company posted a net loss of $431 million for the quarter ended Dec. 31, compared with net income of $1.2 million a year earlier.
Adjusted net income was $37 million, or $0.09 per share, well ahead of analysts’ expectations for an adjusted loss of $0.01 per share. Adjusted results excluded nonrecurring items, including restructuring charges.
Revenue fell 5.2% to $1.33 billion, topping estimates of $1.31 billion. In North America, Under Armour’s largest market, revenue declined 10% to $757 million. International revenue rose 3% to $577 million, driven by growth in Latin America and EMEA.
Wholesale revenue decreased 6% to $660 million, while direct-to-consumer revenue fell 4% to $647 million.
Within DTC, owned-and-operated store sales declined 2%, and e-commerce revenue fell 7%, accounting for 38% of total DTC revenue during the quarter.
Under Armour launched a restructuring plan in May 2024, and the company said the total cost is now expected to reach up to $255 million, including up to $107 million in cash charges and up to $148 million in non-cash charges.
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That compares with a $160 million estimate in November, and an initial estimate of $70 million to $90 million when the plan was first announced.
CEO Kevin Plank said the company is encouraged by progress in its turnaround despite what he described as several “unfortunate, non-recurring impacts.”
“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,” Plank said. “Our transformation is accelerating as we sharpen our focus and strengthen execution.”
Under Armour raised its fiscal 2026 outlook, now expecting earnings per share of $0.10 to $0.11, up from its prior forecast of $0.03 to $0.05.
Revenue is now expected to decline about 4%, compared with a previous estimate of a 4% to 5% decline.
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