Under Armour stock jumped in premarket trade Tuesday after the athletic apparel company reported good fiscal third-quarter profitability, indicating that CEO Patrik Frisk is making headway in restoring the company's brand image.

Due to increased demand for its footwear and sweat-wicking gear, Under Armour now expects sales to increase by 25% from 2020, above its previous forecast.

Frisk has been attempting to improve Under Armour's reputation by raising marketing spending and removing inventory from discount channels in order to sell more full-price items.

The company's stock has lately risen by roughly 9%.

Here's how Under Armour fared against analyst expectations

-Earnings per share: 31 cents vs 15 cents projected
-$1.55 billion in revenue vs $1.48 billion projected

The company's net income for the three months ended Sept. 30 increased to $113.4 million, or 24 cents per share, from $38.9 million, or 9 cents per share, a year earlier. Under Armour earned 31 cents per share after restructuring charges of $17 million, more than double the 15 cents per share projected by analysts.

Revenue increased by 8% to $1.55 billion from $1.43 billion the previous year. Analysts had predicted $1.48 billion in sales.

Wholesale revenue increased by 10%, while direct-to-consumer sales increased by 12%. As e-commerce activity slowed due to the pandemic, online sales were down 4% from the previous year.

North American sales increased by 8%, while international revenue increased by 18%. Sales increased 19% in Asia-Pacific, 15% in Europe, the Middle East, and Africa, and 27% in Latin America, according to Under Armour's international sector.

Under Armour - Wikipedia

The results are the latest proof that the company's goal of increasing profit margins is on track. Frisk has been in charge since January 1, 2020, when he was tasked with turning around the company's sales downturn. Under Armour was losing market share to competitors like Nike and Lululemon in a competitive environment.

While other retailers have been harmed by factory closures in Vietnam, an apparel manufacturing hotspot, Under Armour has remained unconcerned about supply chain problems. Vietnam, Jordan, Malaysia, and China account for over 68% of the company's clothes and accessories.

On an adjusted basis, Under Armour expects profits per share to be about 74 cents in fiscal 2021, up from its previous projection of 50 cents to 52 cents.

Revenue is expected to rise by roughly 25%, compared to a forecast of a rise in the low twenties previously.

Under Armour was expected to earn 55 cents per share on adjusted sales of $5.5 billion, according to analysts.

As of Monday's market close, Under Armour shares were up approximately 28% year to date. The company's market cap is $10.3 billion.