By
Bloomberg
Published
November 7, 2024
Under Armour Inc. reported results that surpassed analysts’ expectations as the sportswear company’s turnaround gains momentum under founder Kevin Plank.
Bolstered by that performance, the athletics brand now is expecting its operating loss for the fiscal year that runs through March to be as much as $196 million, compared to the previous forecast for a loss as deep as $240 million.
Under Armour’s shares gained 7.3% at 7:36 a.m. in premarket trading in New York. The stock had been down about 3.5% this year through Wednesday’s close.
For the second quarter, which went through September, sales and adjusted earnings topped the average estimate from analysts.
Plank, who ran the company for more than two decades before stepping aside at the end of 2019, retook the role of chief executive officer in April.
Overhauling Firm
He’s now restructuring the business by overhauling its operating model and supply chain in search of savings. The latest results, which included a sixth-consecutive quarter of declining revenue, are likely to raise the pressure on him to produce results for investors.
Under Armour said in September that the revamp will cost more than expected after it decided to shut down a distribution center in California.
The company has undergone $40 million in restructuring-related costs. Under Armour expects total charges for the overhaul to be as much as $160 million.
