Feb 9, 2024
Under Armour Inc. raised its outlook for full-year earnings, with cost cuts in its turnaround effort making up for a continued decline in revenue.
The athletic-wear maker said Thursday it expects adjusted earnings of 50 cents to 52 cents a share for the year ending in March. Analysts had expected 49 cents, according to estimates tallied by Bloomberg.
The Baltimore-based company has worked to get rid of excess inventory over the past several quarters as the industry dealt with a longstanding pileup of merchandise. Inventories fell 9% in the third quarter to $1.1 billion, more than analysts had predicted.
Chief Executive Officer Stephanie Linnartz has embarked on a new three-year strategic plan to prioritize categories like womenswear and footwear since she took the job last year. She has also overhauled senior management, adding new heads of product and branding.
Shares rose as much as 9% in premarket trading in New York. The stock had been down 12% this year through Wednesday’s close.