Under Armour Stock Soars 20% After Strong Earnings Report, Revised Guidance: Retail Is Jubilant

Shares of Under Armour Inc ($UAA) soared over 20% on Thursday morning after the company reported its fiscal 2025 second-quarter results that topped Wall Street estimates and raised its full-year guidance.

Revenue declined 11% year-over-year (YoY) to $1.4 billion, higher than a Wall Street estimate of $1.38 billion. Adjusted earnings per share (EPS) came in at $0.30, higher than an analyst estimate of $0.19. Net income rose 63% YoY to $170.38 million during the quarter.

CEO Kevin Plank said the firm is fundamentally stronger with increasingly better execution across key dimensions. “This includes more consistent marketplace discipline through meaningfully improved product, storytelling, and sales leadership, which will deliver a sharper, unique approach to our brand position in the years ahead,” he said.

In May this year, Under Armour announced a restructuring plan aimed at strengthening and supporting the company's financial and operational efficiencies. The company pointed out that as of the second fiscal quarter of 2025, it has recognized $28 million in restructuring and impairment charges and $11 million in other related transformational expenses under the plan.

“Of the total $40 million incurred to date, $36 million is cash-related, and $4 million is non-cash-related. The company anticipates the remainder of the charges under the updated restructuring plan will occur during fiscal 2025 and fiscal 2026,” it said.

For fiscal 2025, the firm expects revenue to decline at a low double-digit percentage rate while gross margin is expected to increase by 125 to 150 basis points compared to the prior expectation of a 75 to 100 basis point improvement.

Under Armour expects operating loss to be $176 to $196 million, compared to the previous expectation of $220 to $240 million. Adjusted diluted earnings per share is expected to be between $0.24 and $0.27, versus a previous expectation of $0.19 to $0.21. 

Following the earnings release, retail sentiment on Stocktwits jumped into the ‘extremely bullish’ territory (94/100) compared to ‘neutral’ a day ago.

One Stocktwits user expressed optimism on the stock’s rally.

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