Under Armour Q2 Profit Beats Market, Lifts FY25 Earnings View; Stock Climbs In Pre-market

(RTTNews) - Under Armour, Inc. (UAA, UA), a distributor of branded athletic apparel, footwear, and accessories, on Thursday reported higher second-quarter earnings, above market estimates, despite a drop in net revenues. Further, the company lifted its fiscal 2025 adjusted earnings forecast, in line or above market estimates.

In pre-market activity on the NYSE, UA shares were gaining around 10.3 percent to trade at $8.89, and UAA shares were gaining around 13.7 percent to trade at $9.95.

The company's second-quarter net income was $170.38 million or $0.39 per share, higher than last year's $104.71 million or $0.23 per share.

Adjusted net income was $131 million or $0.30 per share.

Analysts on average expected the company to report earnings of $0.20 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

Net revenues for the quarter fell 11 percent to $1.40 billion from $1.57 billion last year. The Street was looking for revenues of $1.38 billion.

Looking ahead, the company said it raised fiscal 2025 profitability outlook with better-than-expected results, while simultaneously increasing marketing investments to amplify its brand.

For the year, loss per share is now expected to be between $0.48 and $0.51, compared to the prior expectation of loss of $0.53 to $0.56.

Adjusted earnings per share is expected to be between $0.24 and $0.27, compared to the previous expectation of $0.19 to $0.21. Analysts project earnings of $0.24 per share for the year.

Revenue is still expected to decline at a low double-digit percentage rate. This includes a 14 to 16 percent decline in North America as the company works to reset this business.

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