Why did UA's Q3 2025 earnings exceed expectations?

Under Armour's Q3 2025 earnings exceeded expectations due to several key factors:

1. **Revenue Decline Better Than Expected**: The company's revenue declined by 6% to $1.4 billion, which was an improvement over the expected 10% drop. This indicates that the company performed better than anticipated in a challenging market.
2. **Gross Margin Improvement**: Under Armour's gross margin increased by 240 basis points to 47.5%, driven by supply chain benefits and reduced discounting. This improvement reflects operational efficiencies and a focus on profitability.
3. **Strategic Product Launches**: The company made significant progress in enhancing its product offerings, particularly in athletic performance and sportswear. The launch of new products such as the Curry brand's Fox 1 shoe and the SlipSpeed Echo footwear has generated positive buzz.
4. **Growth in Loyalty Program**: Under Armour is seeing growth in its loyalty program, with 4 million new members added in North America, demonstrating higher repurchase rates and revenue per consumer.

Overall, Under Armour's Q3 2025 earnings exceeded expectations due to a combination of better-than-expected revenue, improved gross margins, strategic product launches, and growth in its loyalty program.