Under Armour posted lower fiscal first-quarter revenue but the company swung to small profit despite a challenging environment in North America and the Asia-Pacific region.
The company posted a quarterly profit of $545,000, or 0 cents a share, compared with a loss of $2.61 million, or 1 cent a share, the year prior.
On an adjusted basis, the company reported earnings of 5 cents a share for the quarter. Analysts polled by FactSet expected earnings of 2 cents a share.
Revenue fell 3% to $1.1 billion, in line with Wall Street's expectations. Wholesale revenue fell 1.6% to $638.5 million.
North America revenue was down 9% at $609.8 million, offsetting a 5% gain in international revenue.
Gross margin rose 590 basis points to 54.1%, primarily due to tariff refunds, the company said.
"As we navigate a challenging consumer demand environment, we continue to make progress in building a more focused Under Armour, despite updating our full-year revenue outlook," said Chief Executive Kevin Plank.
For fiscal 2027, the company said it expects revenue to decline at a mid-single-digit percentage rate compared with the prior outlook of a slight decline, blaming softer demand in North America and Asia-Pacific.
Under Armour said it remains focused on balancing near-term revenue opportunities with actions that strengthen long-term brand health, including disciplined marketplace management and protection of full-price selling.
It guided for fiscal-year adjusted earnings of 8 cents to 12 cents a share, compared with analysts' expectations of 11 cents a share.
The company said it still anticipates adjusted operating income of $140 million to $160 million, which includes a $70 million benefit from tariff refunds and about $35 million in headwinds related to the war in the Middle East.
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