10:39 AM EDT, 08/08/2024 (MT Newswires) -- Under Armour ( UAA ) reported a surprise fiscal first-quarter profit on Thursday even as it booked restructuring expenses, prompting the sportswear maker to nudge its full-year earnings outlook higher.

The company posted adjusted earnings of $0.01 a share for the quarter ended June 30, better than the Capital IQ-polled consensus for a loss of $0.08. Under Armour ( UAA ) didn't provide a year-ago figure for comparison in the press release. Revenue declined to $1.18 billion from $1.32 billion the year before, topping the Street's view for $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," Chief Executive Kevin Plank said in a statement. Shares of the company jumped about 19% in Thursday's trading session.

In North America, Under Armour's ( UAA ) revenue fell 14% to $709.3 million. Sales edged up 0.1% to $226.9 million in Europe, the Middle East and Africa and rose about 16% to $64.4 million in Latin America. Asia Pacific saw a 10% annual drop in revenue to $181.8 million.

Wholesale revenue slipped 8.3% to $680.5 million while direct-to-consumer slid 12% to $480.2 million. Apparel revenue fell 8.1% to $757.8 million, while footwear declined 15% to $310.9 million.

Gross margin expanded by 110 basis points to 47.5%, buoyed by lower levels of discounting in the direct-to-consumer business and reduced product costs. Selling, general and administrative expenses rose 42% to $837.3 million, including a $274 million litigation reserve.

The company incurred $25 million of restructuring and impairment charges and $9 million in other expenses, as part of a plan launched in May. At the time, Under Armour ( UAA ) issued a cost forecast of $70 million to $90 million to achieve financial and operational efficiencies. The remainder of the charges are expected to materialize during fiscal 2025.

For the ongoing fiscal year, the sportswear maker now anticipates adjusted EPS to be in a range of $0.19 to $0.22, up from its previous guidance of $0.18 to $0.21. The Street is looking for normalized EPS of $0.20. Revenue is still expected to decline by a low-double-digit percentage, but sales in North America are now estimated to decrease by 14% to 16% versus the prior outlook for a 15% to 17% drop.

Price: 7.39, Change: +1.12, Percent Change: +17.78