Here's Why Under Armour Stock Raced Higher Today
Shares of athletic apparel company Under Armour (NYSE: UA) (NYSE: UAA) raced higher on Thursday after the company pleasantly surprised investors with its financial report for its fiscal first quarter of 2025. As of 11:30 a.m. ET, both share classes of Under Armour stock were up more than 17%.
In October 2019, Under Armour founder Kevin Plank stepped down as its CEO. The stock has drifted about 70% lower since then. The company consequently brought Plank back earlier this year, and his turnaround plan is already underway. And investors seem encouraged with early results so far.
Under Armour used to be considered as a premium apparel brand, and Plank wants that reputation back. The company is focusing less on sales volume -- Q1 revenue was down 10% year over year as a result. Rather, it's more concerned about margins. Therefore, Under Armour's gross-margin improvement was a move in the right direction under its new plan.
Source Fool.com
