Under Armour's second-quarter fiscal 2025 earnings report shows signs of improvement despite an 11% revenue decline to $1.4 billion.
While the company lost revenue in its quarterly earnings report, Plank said the loss was in line with their expectations.
Chief executive officer Kevin Plank emphasized the company's shift toward a "premium" brand position is "gaining traction" and boosting profitability.
"With better-than-expected results, we are pleased to raise our full-year profitability outlook while simultaneously increasing marketing investments to amplify our brand," Plank said.
Plank said the company is amplifying the Under Armour brand by continuing "better execution across key dimensions."
"This includes more consistent marketplace discipline through meaningfully improved product, storytelling, and sales leadership, which will deliver a sharper, unique approach to our brand position in the years ahead," he said.
Gross margin rose 200 basis points to 49.8%, driven by lower product costs and reduced discounting.
Operating income reached $173 million, and net income hit $170 million, with adjusted diluted EPS at $0.30.
Under Armour's restructuring plan has incurred $40 million in charges to date, but $3 million of the restructuring charges were from Q2.
The company has raised its profitability outlook, expecting adjusted operating income of $165-$185 million and adjusted EPS of $0.24-$0.27.
Under Armour plans to invest nearly $25 million in marketing investments.
