Sportswear company announces better-than-expected results and raises forecasts for the year, boosting shares by 27%
Under Armour, a sports apparel company based in Baltimore, announced financial results that exceeded expectations for the 2nd quarter of 2025. The announcement was made on Thursday (07.Nov.2024), and the company’s shares rose 27% at the time. end of the day. This increase was the 2nd largest since the initial public offering in 2005, according to .
Although total revenue fell 11% to $1.4 billion compared to the previous year, the company beat profit estimates and raised its forecast for the remainder of the fiscal year.
Revenue in North America fell 13%, totaling US$863 million. In the international market, revenue decreased 6%, reaching US$538 million. Revenue in Europe, the Middle East and Africa fell 1%, while in the Asia-Pacific region it fell 11% and in Latin America it fell 13%. Apparel and footwear sales fell 12% and 11%, respectively, while accessories revenue rose 2% to $116 million.
The company had net income of $170 million, with adjusted net income of $131 million. “Our performance in the second quarter of fiscal 2025 shows that our strategy of rebuilding the Under Armor brand and positioning it as more premium is paying off.”said Kevin Plank, CEO of the company.
Under Armor adjusted its operating loss forecast for fiscal 2025 to $176 million to $196 million, an improvement from its previous forecast. The adjusted operating profit forecast also increased, from $140 to $160 million to $165 to $185 million. Plank also announced the launch of the “most significant marketing effort” in the company’s history for 2025.
