Under Armour (UAA) stock plummeted 5.04% in intraday trading on Thursday, underperforming the broader market. The significant drop came after the company reported mixed fourth-quarter results and lowered its revenue outlook for 2025.
In its earnings report, Under Armour revealed a 5.7% year-over-year decline in revenue to $1.4 billion for the quarter ended December 31, 2024, despite beating analysts' expectations by $60 million. However, the company's adjusted earnings per share of $0.08 missed analysts' consensus estimate of $0.04.
More concerning for investors was the company's lowered expectations for 2025. Under Armour now expects its 2025 revenue to decline by approximately 10%, a significant downgrade from its prior expectation of a low double-digit percentage decline. The company also reported $14 million in restructuring charges during the third quarter, further impacting its profitability.