US sports equipment supplier Under Armour has surprisingly started its financial year with a profit.

Instead of the adjusted loss of eight to ten cents per share expected by analysts, the competitor of Nike and Adidas achieved a profit of one cent per share in the first quarter, as it announced on Friday. Sales fell by ten percent to 1.18 billion dollars in the first quarter. The decline was thus somewhat less than analysts had feared. "We are encouraged by the early progress we have made to re-establish the premium positioning of the Under Armour brand," said CEO Kevin Plank.

Like its rivals, the company has tried in the past to empty its overstocked warehouses with discounts. With success: inventories fell by fifteen percent to 1.1 billion dollars. In North America, sales fell by 14 percent as inflation weighed on customers' wallets. Thanks to the overall dynamic development of its business, the Group increased its profit forecast for the current financial year. Under Armour now expects adjusted earnings per share of between 19 and 22 cents, instead of the previously forecast range of 18 to 21 cents. In North America, the company's largest market, sales are expected to fall by 14 to 16 percent instead of the previously expected 15 to 17 percent.

The figures and the raised forecast were well received on the stock market. Shares rose by 6.5 percent in pre-market trading.

(Report by Savyata Mishra, written by Philipp Krach. Edited by Olaf Brenner. If you have any questions, please contact our editorial team at berlin.newsroom@thomsonreuters.com (for politics and the economy) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).)