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Investing.com - Shares in Under Armour (NYSE:UA) surged by more than 10% on Thursday after the athletic apparel maker lifted its annual adjusted income outlook.
Under CEO Kevin Plank, Under Armour has been pushing to restructure its operations by slashing headcount and reducing its inventory levels in some products, all in a bid to stem a period of poor results and revamp the brand as it faces competition from the likes of On and Deckers Outdoor (NYSE:DECK)’s Hoka.
In particular, Plank has been aiming to sell the company’s sportswear and gear at full prices following steep discounting in recent years.
Writing in a statement, Plank said that the product strategy and "enhanced marketplace discipline" have helped to drive a "transformation" at the business.
Under Armour said it now expects to report an adjusted operating income outlook in a range of $185 million to $195 million, up from a prior guidance of $140 million to $160 million. Analysts had seen the guidance at $178.9 million, according to Bloomberg consensus forecasts.
For its fiscal third quarter, net revenue dipped by 5.7% against a year ago to $1.4 billion, but still topped projections of $1.34 billion. Sales in every region apart from Latin America came in ahead of expectations.
Adjusted earnings per share of $0.08 also fell from $0.19 in the corresponding timeframe last year, yet surpassed expectations as well.