Sportswear manufacturer Under Armour released second-quarter financial results on Thursday that matched income expectations with a 11 % drop, but the business surprisingly exceeded the earnings estimates as price savings and fewer item discounts and promotions boosted profits.
Wall Street cheered the results, sending the stock up 27.2 % by end of market trading — Under Armour’s second-best day since its 2005 IPO.
” We are a ultimately stronger business now with significantly better implementation across key sizes”, Kevin Plank, Under Armour CEO, said in the earnings transfer. This includes more continuous market control, improved item, storytelling, and sales management, which will give our brand a more refined, distinctive approach in the years to come.

Plank co-founded Under Armour in 1996, and he took over as CEO on April 1 after various quarters of subpar sales. Under Armour’s market cap topped$ 22 billion in 2015 but dipped below$ 3 billion this April. ” Our method is gaining traction,” Plank said, “our approach to reconstitute the In Armour brand and create a more premium position in the market.
Revenue for the three months ending Sept. 30 was$ 1.4 billion, down 11 % from the prior year and the sixth straight quarter of declines. Earnings per share were$ 0,39, and the changed EPS was$ 0,30, up from the consensus estimate of$ 20. Improved net margins and lower marketing, standard, and administrative expenses contributed to the earnings beat.
Under Armour updated its fiscal 2025 outlook to adjusted EPS between$ 0.24 and$ 0.27, a five-cent boost from previous guidance. ” ] Under Armour ] is demonstrating their ability to deliver margin upside through lower DTC promos and good cost control despite a very weak] North America business ]”, Paul Lejuez, Citi Wall Street analyst, said in a research note after the earnings release. Lejuez added that he still sees inside to company’s raised 2025 EPS advice.
In addition to Plank, another important figures made their mark in 2024, including Eric Liedtke’s executive vice president of company strategy and Yassine Saidi’s general merchandise officer.
North America is Under Armour’s biggest industry, representing more than 60 % of income, and it continues to be a difficult place for the company, as it has been for Adidas and Nike lately. In the first six months of the fiscal year, UA North America’s profit decreased by 13.5 %.
For the quarter, apparel and footwear revenue fell double-digit percentages, but accessories ticked up 2.1 % to$ 116.4 million.
( This story has been updated with end-of-day stock movement. )