Under Armour's shares climbed in premarket trading after the company reported third-quarter earnings that exceeded expectations. The sportswear maker's earnings per share (EPS) of $0.09 surpassed the consensus estimate of a $0.02 loss. Revenue of $1.33 billion was slightly above analyst predictions, though still down 6% on a currency-neutral basis. The company also issued upbeat guidance.

Despite a drop in North American revenue, international sales provided a boost, rising 3% on a currency-neutral basis. However, headwinds from higher tariffs and pricing pressures are impacting the company's gross margin. CEO Kevin Plank expressed optimism, noting progress in revitalizing brand momentum. Adjusted operating income reached $26 million for the quarter.

Looking ahead, Under Armour anticipates fiscal 2026 EPS between $0.10 and $0.11, exceeding the average analyst estimate. Revenue is projected to decline approximately 4% for the year. This positive outlook suggests the company is starting to stabilize. Investors will be watching for further signs of recovery in the coming quarters.

Under Armour's performance reflects the ongoing challenges facing athletic apparel brands. Supply chain issues and changing consumer preferences are impacting the industry. The company is working to adapt, focusing on its international markets. Stronger-than-expected earnings and positive guidance are a welcome sign for investors, indicating a potential turnaround.