Under Armour Q3 Net Loss Beats Expectations

Under Armour Inc., the Baltimore-based sportswear company, reported a net loss of $430.8 million for its fiscal third quarter ended December 31, despite beating analyst expectations on revenue and adjusted earnings, leading to a rise in its stock price in early trading on Friday.

The company posted revenue of $1.33 billion, a 5 percent decline from $1.4 billion in the year-earlier period, but the figure exceeded Wall Street forecasts of $1.31 billion compiled by LSEG and Zacks Investment Research. On an adjusted basis, Under Armour earned 9 cents per share, surpassing expectations of a 2-cent loss. The net loss compared with a $1.2 million profit in the prior year's quarter and stemmed largely from $75 million in restructuring charges, tax valuation allowances, and other non-operational expenses. Gross margin contracted 310 basis points to 44.4 percent, pressured by tariffs, channel mix shifts, and foreign exchange effects.

Regionally, North American revenue fell 10 percent amid uneven retail conditions and cautious consumer spending, while international sales rose 3 percent. Growth in Europe, the Middle East, and Africa offset declines in Asia-Pacific. Apparel and accessories...