Under Armour shares surge, as investors see promise despite $305.4 million loss

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Under Armour Thursday reported a loss of $305.4 million in its fiscal year first quarter amid a restructuring plan and steep declines in North American and direct-to-consumer sales.

The Baltimore-based company said it had a loss of 70 cents per share. Earnings, adjusted for non-recurring costs and restructuring costs, were 1 cent per share.

The results surpassed Wall Street expectations. The average estimate of 13 analysts surveyed by Zacks Investment Research was for a loss of 8 cents per share. Under Armour expects full-year earnings in the range of 19 cents to 22 cents per share.

Investors chose to look past the company’s loss, focusing instead on the better-than-expected nature of the earnings report. The company’s share price rose more than 18% Thursday.

The sports apparel company posted revenue of $1.18 billion in the period, which also beat Street forecasts. Eleven analysts surveyed by Zacks expected $1.14 billion.

“We are encouraged by early progress in our efforts to reconstitute a premium positioning for the Under Armour brand and pleased with our first quarter fiscal 2025 results that were ahead of expectations,” said Under Armour President and CEO Kevin Plank. “Our renewed energy and alignment are proving to be critical enablers as we work to deliver superior products and storytelling while driving efficiencies, reducing promotional activity, and complexity.”

Plank, the founder of the company, returned to his old job as CEO on April 1, apparently impatient with the company’s turnaround efforts under former Marriott International executive Stephanie Linnartz.