Market analysts are still skeptical about Under Armour's growth despite it exceeding revenue expectations for the quarter, and shares being up on the year by 40%, reports Market Watch.

The state of play: Despite its revenue success, the sports apparel company is still in the woods with operating costs after it took a hit in its investments from direct-to consumer costs and expansion outside of North America in the company's plan to restructure. The company's net losses reached 21 cents per share and they are expected to incur more costs in moving excess inventory.