Yesterday’s Consumer Pops and Drops: UA, SON, PCAR, and PKG
Price movement of Under Armour
Under Armour (UA) has a market cap of $9.5 billion. UA fell by 5.5% to close at $41.15 per share on April 11, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -48.6%, -45.8%, and -46.0%, respectively, on the same day. This means that UA is trading 49.6% below its 20-day moving average, 49.3% below its 50-day moving average, and 53.3% below its 200-day moving average.
Related ETF and peers
The Guggenheim S&P 500 Pure Growth ETF (RPG) invests 1.2% of its holdings in Under Armour. RPG tracks an index of primarily large-caps and mid-caps with strong growth characteristics. The index selects companies from the S&P 500 Index based on three growth factors. The YTD price movement of RPG was -1.5% as of April 8, 2016.
The market caps of Under Armour’s competitors are as follows:
- Nike (NKE) — $101.6 billion
- Skechers USA (SKX) — $4.3 billion
- Columbia Sportswear Company (COLM) — $4.1 billion
Jordan Spieth lost, and Under Armour fell
Under Armour fell 5.5% after Jordan Spieth lost the Masters Golf Tournament. Spieth has signed a ten-year agreement to wear the company’s golf shoes and other clothes. NBA (National Basketball Association) point guard Stephen Curry and NFL (National Football League) quarterback Cam Newton have performed well in their respective games but still failed to boost the company’s stock price.
Performance of Under Armour in 4Q15 and 2015
Under Armour (UA) reported fiscal 4Q15 net revenues of $1.2 billion, a rise of 30.8% compared to net revenues of $895.2 million in fiscal 4Q14. Revenues from licensing and connected fitness rose by 43.1% and 220.8%, respectively, in fiscal 4Q15 compared to fiscal 4Q14. The company’s cost of goods sold as a percentage of net revenue rose by 3.8%, and gross profit margin fell by 3.8% in fiscal 4Q15 compared to fiscal 4Q14.
Its net income and EPS (earnings per share) rose to $105.6 million and $0.48, respectively, in fiscal 4Q15. This compares to $87.7 million and $0.40, respectively, in fiscal 4Q14.
Fiscal 2015 results
In fiscal 2015, UA reported net revenues of $4.0 billion, a rise of 28.5% year-over-year. The number of factory house and brand house door counts rose to 161 and 30, respectively, in fiscal 2015.
The company’s net income and EPS rose to $232.6 million and $1.05, respectively, in fiscal 2015. That compares to $208.0 million and $0.95, respectively, in fiscal 2014.
UA reported cash and cash equivalents of $129.9 million in fiscal 2015 compared to $593.2 million in fiscal 2014. Its inventories rose by 45.9% in fiscal 2015. Its debt-to-equity ratio rose to 0.72 in fiscal 2015 compared to the debt-to-equity ratio of 0.55 in fiscal 2014.
Under Armour has made the following projections for fiscal 2016:
- net revenue of ~$5.0 billion, a growth of 25% over fiscal 2015
- operating income of ~$503 million, a growth of 23% over fiscal 2015
- tax rate of 38.5%
- interest expense of ~$35 million
In the next part, we’ll look at Sonoco Products.
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