Under Armour lifts annual forecasts as reset strategy stems sales slide

Under Armour raised its annual forecasts after posting better‑than‑expected third‑quarter results on Friday, as its strategy to simplify product mix and launch new apparel and footwear helped retain budget‑conscious shoppers.

The sportswear retailer has deepened its restructuring push over the last year to revive sales through streamlined operations and cost-cutting measures, while expanding its premium segment portfolio.

CEO Kevin Plank said he expects Under Armour to have greater stability ahead after surviving “the most challenging phase” of business reset in the December quarter, sending its shares up four per cent before the bell. The shares had lost nearly 40 per cent of their value last year.

Under Armour has pulled back on discounts and plans to cut about 25 per cent of its product lines and focus on higher‑priced items in categories such as training, running and team sports, its executives have said.

“Elevating product and pricing takes time, and the company faces a delicate balance between growing higher end offerings and protecting near term sales from its core, lower priced basics,” said Patrick Ricciardi, analyst at Third Bridge.

Higher U.S. tariffs on goods from manufacturing hubs such as Vietnam and Indonesia are expected to add about US$100 million to Under Armour’s costs this fiscal year.