Adds background and details throughout, share movement in paragraph 5

Feb 6 (Reuters) - Under Armour UAA.N posted a smaller-than-expected drop in third-quarter revenue on Friday, as turnaround efforts by the sportswear maker to simplify product assortment helped stabilize demand during the key holiday season.

The Baltimore-based retailer has deepened its restructuring push over the last year to revive sales through streamlined operations and cost-cutting measures, while expanding its premium segment portfolio.

Under Armour has been lowering discounts and plans to cut about 25% of its product lines and focus on higher‑priced items in categories such as training, running and team sports, its executives have said.

The company logged a 5% decline in revenue to $1.33 billion for the quarter ended December 31, compared to analysts' estimate of a 6.3% drop to $1.31 billion, according to data compiled by LSEG.

Shares of the company, which lost about 40% of their value last year, rose more than 2% before the bell.

It now expects fiscal 2026 adjusted profit per share of 10 cents to 11 cents, compared to its prior target of 3 to 5 cents.