Under Armour Stock Jumps With Restructuring in Full Swing

Under Armour (UAA) shares popped intraday Thursday following the company’s first-quarter fiscal 2025 results, its first since announcing a substantial restructuring plan.

The athletic apparel retailer said it has recognized $34 million of the estimated $70 to $90 million in charges related to the restructuring, with the remainder expected to occur in fiscal 2025. Notably, the process has included a drawback in promotional material. 

CEO ‘Encouraged by Early Progress’ in Restructuring Process

“We are encouraged by early progress in our efforts to reconstitute a premium positioning for the Under Armour brand and pleased with our first quarter fiscal 2025 results that were ahead of expectations,” Chief Executive Officer (CEO) Kevin Plank said.

Under Armour reported revenue of $1.18 billion, down 10% year-over-year but above analysts’ expectations of $1.14 billion, per Visible Alpha. North America revenue decreased 14% to $709.3 million. 

It posted a per-share loss of 70 cents, far wider than expectations of a loss of 27 cents per share. However, the company posted an adjusted profit of 1 cent per share, while analysts expected an adjusted loss of 8 cents per share. 

Under Armour said it expects fiscal 2025 revenue to fall at a low double-digit percentage rate, in line with expectations. It sees earnings swinging to a loss between 53 cents and 56 cents per share, far wider than expectations of a 4-cent loss per share, and an adjusted per-share profit of 19 cents to 22 cents, in line with expectations of 20 cents. 

Shares of Under Armour surged nearly 20% to $7.74 as of 12:10 p.m. ET Thursday. Still, they are down about 12% in 2024.