Under Armour Inc ( UAA ) stock gained after the company reported first-quarter 2025 results on Thursday.

The company reported a first-quarter sales decline of 10.1% year-over-year to $1.183 billion, beating the analyst consensus estimate of $1.140 billion.

The company’s adjusted EPS was $0.01, above the $0.08 consensus loss.

Wholesale revenue decreased 8% YoY to $681 million, and direct-to-consumer revenue was down 12% at $480 million.

Apparel revenue slipped 8%, Footwear revenue dropped 15%, and Accessories revenue decreased 5%. North American revenue decreased 14.2% to $709 million, and international revenue increased 2% to $473 million.

Gross profit decreased 7.9% to $562.67 million, and the gross margin expanded 110 basis points to 47.5%.

The company incurred an operating loss of $299.73 million in the quarter compared to an operating income of $22.42 million.

The company held $885 million in cash and equivalents as of June-end. Inventory was $1.1 billion, a 15% decrease.

In May 2024, Under Armour ( UAA ) announced a restructuring plan estimated at $70 million – $90 million. So far, $34 million in charges have been incurred, with $19 million in cash and $15 million in non-cash. Remaining charges are expected in fiscal 2025.

In the quarter, UAA repurchased $40 million of its Class C common stock, reflecting 5.9 million shares retired, leaving ~$460 million under the authorization.

“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 ( UAA ) President and CEO Kevin Plank. 

2025 Outlook: Under Armour ( UAA ) expects revenue to be down at a low-double-digit percentage rate, including a 14% – 16% decline (previously 15% – 17% decline) in North America.

The company sees Adjusted EPS of $0.19 – $0.22 (prior $0.18 – $0.21) versus an estimate of $0.20.

Gross margin is expected to be up 75 to 100 basis points. Adjusted Operating income is expected to be $140 million to $160 million versus the previous expectation of $130 million to $150 million.

Price Action: UAA shares are trading lower by 11.3% at $6.98 in premarket at the last check Thursday.

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