Sports apparel giant expects a slight first-quarter profit, while Wall Street was expecting a breakeven quarter.

Under Armour Inc.'s stock rose 2% in premarket trading on Tuesday after the sports-clothing giant's fiscal first-quarter outlook topped Wall Street estimates, with its chief executive saying the company's turnaround efforts are bearing fruit.

Under Armour said it expects to generate an adjusted first-quarter profit of 1 cent to 3 cents a share, while analysts are currently forecasting the Philadelphia-based company to break even in the quarter.

"We are demonstrating traction in our efforts to reposition the brand," Chief Executive Kevin Plank said in a prepared statement.

Under Armour faces a "complex macroeconomic backdrop" amid trade negotiations and tariff talk between the U.S. and China, he said.

"Our sharpened execution, alignment, and focus - bolstered by the move to a category-led operating model - equip us to navigate ongoing volatility with resilience," Plank said.

For its fourth fiscal quarter, Under Armour also beat analyst estimates for revenue and met estimates for its adjusted loss-per-share.

It also increased its gross margins by 180 basis points as it benefited from reduced freight and product costs and a drop in direct-to-consumer discounting.

In the three months ended March 31, Under Armour reported a net loss of $67.46 million, or 16 cents a share. In the year-ago quarter, Under Armour reported net income of $6.57 million, or 2 cents a share.

Adjusted net loss of 8 cents a share matched analysts' forecasts.

Fourth-quarter revenue fell 11% to $1.18 billion from $1.33 billion in the year-ago period, but beat the FactSet consensus estimate of $1.17 billion.

Adjusted net loss of 8 cents a share matched analysts' forecasts.

Selling, general, and administrative expenses grew 8% to $2.6billion.

The company has marked about a year since launching its turnaround plans, which included projected restructuring costs of $140 million to $160 million.

So far, Under Armour has recognized $58 million in restructuring and impairment charges and $31 million in other expenses under the plan.

Under Armour's stock has fallen about 21.1% in 2025, even with a nearly 6% rally on Monday. The Nasdaq COMP has fallen 3.1% this year.