Under Armour Stock Surges After Q3 Earnings Beat: Retail Is Excited About Turnaround Progress

Shares of Under Armour Inc ($UAA) rose more than 1% in after-hours trading on Thursday after the company reported its third-quarter results that topped Wall Street estimates, revving up bullish retail sentiment.

Revenue declined 6% year-over-year (YoY) to $1.4 billion, beating Wall Street estimates of $1.34 billion. Adjusted earnings per share (EPS) came in at $0.08, higher than an analyst estimate of $0.03.

CEO Kevin Plank said, "We are pleased our quarterly results exceeded expectations. As we sharpen our focus on strengthening the Under Armour brand, our updated product strategy and enhanced marketplace discipline combined with the shift to a category-led operating model are driving our transformation."

Plank added the company’s new marketing strategy will include launching a dynamic, multi-year initiative of storytelling that showcases its products and influential creators, among other initiatives.

For fiscal 2025, the firm expects adjusted diluted earnings per share to be $0.28 to $0.30, compared to the previous expectation of $0.24 to $0.27. Revenue is expected to decline by about 10% compared to the prior guidance of a low double-digit percentage decline.

In May 2024, Under Armour announced a restructuring plan to improve the company's financial and operational efficiencies. By the end of the third fiscal quarter of 2025, the company had recognized $42 million in restructuring and impairment charges and $15 million in other related transformational expenses under the plan, the company said.

Following the earnings release, retail sentiment on Stocktwits jumped further into the ‘extremely bullish’ territory. Message volumes also rose to ‘extremely high’ from ‘normal’ a week ago.

One Stocktwits commenter was upbeat about the company’s efforts towards reviving the brand.

A Stocktwits poll also showed a majority of commenters were ‘very confident’ about the turnaround being on track. Only about 11% thought that restructuring won’t help.

Under Armour is a distributor of branded athletic performance apparel, footwear, and accessories.

Under Armour stock is down 8.2% year-to-date.

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