Under Armour (NYSE:UA) saw its stock surge over 18% intra-day today after reporting first-quarter fiscal 2025 results that surpassed expectations and raising part of its full-year outlook, indicating progress in its restructuring efforts.

The athletic apparel maker posted adjusted earnings per share of $0.01, beating the Street estimate of an $0.08 loss. Revenue reached $1.2 billion, exceeding the Street forecast of $1.14 billion, despite a 10% decline year-over-year.

The company’s gross margin improved by 110 basis points to 47.5%, driven by lower discounting in direct-to-consumer sales and reduced product costs, which helped offset challenges from unfavorable foreign currency impacts and channel mix.

Under Armour President and CEO Kevin Plank expressed optimism about the company's progress in reestablishing a premium positioning for the brand and highlighted the strong first-quarter results that exceeded expectations.

Updating its fiscal 2025 outlook, Under Armour now expects revenue to decline at a low double-digit percentage rate. The company also raised its adjusted operating income projection to $140 to $160 million, up from the previous range of $130 to $150 million.

Additionally, Under Armour reported significant progress on its restructuring plan, recognizing $34 million in charges during the quarter out of an estimated total of $70 million to $90 million.