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Investing.com -- Under Armour Inc A (NYSE:UAA) reported third-quarter earnings that topped expectations and issued forecast-beating profit guidance for the full year, pushing its shares higher in premarket trading Friday.
The stock was up 1% by 07:10 ET.
The sportswear company reported earnings per share (EPS) of $0.09 for the quarter, surpassing the consensus estimate of a $0.02 loss. Revenue came in at $1.33 billion, down 6% on a currency-neutral basis, and just above the $1.31 billion expected by analysts.
North America remained a drag, with revenue falling 10% to $757 million. International revenue rose 3% to $577 million, though on a currency-neutral basis growth was just 1%. Within international markets, EMEA revenue increased 2% on a currency-neutral basis, Asia-Pacific declined 5%, while Latin America climbed 13%.
"Our third quarter adjusted operating results exceeded expectations, and despite a few unfortunate, non-recurring impacts, we’re encouraged by the progress we’re making in the business to reignite brand momentum," said Under Armour President and CEO Kevin Plank.
"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."
Adjusted operating income totaled $26 million, excluding litigation reserve expenses and transformation and restructuring charges, while gross margin slid 310 basis points to 44.4 percent, primarily reflecting the impact of higher tariffs.
Looking ahead, Under Armour expects fiscal 2026 EPS in the range of $0.10 to $0.11, better than the average analyst estimate of $0.05.
Revenue is now projected to decline about 4% for the year, slightly better than the prior outlook calling for a 4 to 5% drop.
Gross margin is expected to fall roughly 190 basis points, compared with the earlier forecast of a 190 to 210 basis point decline. The company cited higher U.S. tariffs, unfavorable channel and regional mix, and pricing headwinds as key pressures, partly offset by favorable foreign exchange and product mix.