For the third quarter, Under Armour revenue was up 3 percent or 7 percent currency neutral to 1.6 billion dollars compared to the prior year.

According to Reuters, after the company raised its annual profit forecast, its shares rallied up 8 percent premarket. Diluted earnings per share are now expected to be in the range of 71 cents to 75 cents.

"We are pleased to have delivered solid third-quarter results and remain on track to achieve our full-year operational and financial goals," said Under Armour interim president and CEO Colin Browne.

Review of Under Armour’s Q3 results

Gross margin declined 650 basis points to 44.2 percent, while operating income was 95 million dollars. Net Income was 122 million dollars and adjusted net income was 76 million dollars. Diluted earnings per share were 27 cents, while adjusted diluted earnings per share were 16 cents.

The company’s wholesale revenue increased 7 percent to 820 million dollars and direct-to-consumer revenue decreased 1 percent to 715 million dollars due to a 6 percent decline in owned and operated store revenue partially offset by a 7 percent increase in ecommerce revenue, which represented 45 percent of the total direct-to-consumer business during the quarter.

North America revenue was down 2 percent compared to the prior year at 1 billion dollars, and international revenue increased 14 percent or 24 percent currency neutral to 527 million dollars. Within the international business, revenue increased 32 percent or 46 percent currency neutral in EMEA, decreased 9 percent or increased 1 percent currency neutral in Asia-Pacific and increased 45 percent or 41 percent currency neutral in Latin America.

Apparel revenue decreased 2 percent to 1 billion dollars, footwear revenue increased 25 percent to 354 million dollars and accessories revenue declined 2 percent to 105 million dollars.

Under Armour updates fiscal 2023 outlook

The company said, revenue growth is unchanged from the previous expectation of a low single-digit percentage rate increase on a reported basis, up at a mid-single-digit percentage rate on a currency-neutral basis for fiscal 2023.

Gross margin is expected to decline at the higher end of the previously provided 375 to 425 basis point range.

Operating income remains unchanged from the previous outlook and is expected to reach 270 dollars to 290 million dollars. Excluding the company's litigation reserve, adjusted operating income is expected to reach 290 dollars to 310 million dollars.