Bullish indicating open at $55-$60, IPO prices at $37
Investing.com -- Under Armour (NYSE:UA) posted a first-quarter loss in line with expectations, while revenue slightly topped estimates. The sportswear maker’s shares rose more than 2% after the report.
The company posted an adjusted loss per share of $0.08, matching analyst forecasts. Revenue declined 11% year-over-year to $1.2 billion, but was still ahead of the consensus projection of $1.16 billion.
Under Armour’s operating loss for the quarter totaled $35.6 million, compared to a $53.9 million profit a year ago. Inventory levels were down 1.3% year-over-year to $945.8 million, in line with expectations.
"One year into our strategic reset, we’re laying the groundwork for a more focused Under Armour. By elevating products and storytelling, tightening distribution, and refining our operating model, we are in the process of reigniting brand relevance and positioning the business for sustainable, profitable growth," said Under Armour President and CEO Kevin Plank.
"Our fourth quarter performance contributed to fiscal 2025 results that were better than the expectations we set a year ago and we are demonstrating traction in our efforts to reposition the brand."
Citing "uncertainty surrounding evolving trade policies and the macroeconomic environment," Under Armour is limiting its guidance to the first quarter of fiscal 2026. The company expects adjusted earnings per share between $0.01 and $0.03, with revenue projected to decline 4% to 5% from the prior year. This includes weakness in North America and Asia-Pacific, partially offset by growth in EMEA.
Gross margin is expected to expand by 40 to 60 basis points, helped by favorable product mix, lower costs, and FX benefits.
Operating income is forecast between $5 million and $15 million, or $20 million to $30 million on an adjusted basis excluding restructuring charges.
Adjusted SG&A is expected to decline modestly when excluding last year’s litigation costs.