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(Sharecast News) - Under Armour posted a smaller-than-expected drop in quarterly sales on Friday and boosted its full-year guidance, as the sportswear brand's turnaround gathered pace.
Publishing third-quarter numbers, the Baltimore-based firm said revenues fell 5% to $1.33bn in the three months to December end, better than the 6% decline most analysts were expecting.
Once exceptional items were stripped out, adjusted diluted earnings per share came in at $0.09, also an improvement on consensus, for a loss of $0.02.
Kevin Plank, chief executive, said: "Despite a few unfortunate, non-recurring impacts, we're encouraged by the progress we're making in the business to reignite brand momentum.
"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."
Looking to the full year, Under Armour now expects revenues to decline by around 4%, compared to previous guidance for a decline of between 4% and 5%. The fall includes an 8% drop in North America and a 6% decline in Asia Pacific, partially offset by an expected 9% rise in revenues in EMEA.
Adjusted operating income is expected to be around $110m, at the top end of previous guidance for between $95m and $110m.
However, including restructuring charges and the litigation reserves, the operating loss was forecast to come in at $154m, notably more than the prior outlook for $56m to $71m.
The gross margin is expected to decline by around 190 basis points, primarily due to higher US tariffs.
Plank said: "Our transformation is accelerating as we sharpen our focus and strengthen execution. Our strategy is gaining traction through better products, bolder storytelling and a more a disciplined market presence."
Founder Plank returned as chief executive in early 2024, following two years of sliding sales. Under his leadership, the company has trimmed product lines and reduced promotions, as it seeks to refocus on higher-priced items. It has also cut costs.
The New York-listed stocked jumped 9% as trading got underway on Friday.