Under Armour on Wednesday raised its annual gross margin forecast as the company benefits from easing freight and raw material costs and keeps a tight lid on expenses.

Shares of the company, which cut its annual revenue forecast, were up 2.3% in premarket trade.

Under Armour sees annual gross margin to be up 100 to 125 basis points versus the previous expectation of up 25 to 75 basis points.

Meanwhile, the company expects fiscal 2024 net revenue to fall between 2% and 4%, compared with its earlier outlook of flat to up slightly.

(Reporting by Aatrayee Chatterjee and Ananya Mariam Rajesh in Bengaluru; Editing by Sriraj Kalluvila)