|Bid||0.00 x 800|
|Ask||0.00 x 1000|
|Day's Range||23.29 - 24.36|
|52 Week Range||7.33 - 30.98|
|Beta (5Y Monthly)||1.60|
|PE Ratio (TTM)||N/A|
|Earnings Date||Aug 28, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||29.50|
Under Armour Inc. was upgraded to neutral from negative at Susquehanna Financial Group with analysts more than doubling the athletic company's price target to $9 from $4. Still, analysts led by Sam Poser question whether the brand is really a "premium" label. On the Friday earnings call, Under Armour Chief Executive Patrik Frisk talked up the premium nature of the brand calling out its continued innovation and its efforts, pre-COVID, to rebuild its reputation. "Premium has been and will continue to be core to Under Armour's brand positioning," he said, according to a FactSet transcript. "In this respect, we are working both to strengthen and, in some cases, earn back that consumer promise, one innovative product and premium experience at a time." But Susquehanna calls out the retailers where Under Armour is sold, throwing the "premium" description into question. "Under Armour must, in our opinion, pull back on its presence in the moderate channel at retailers such as Kohl's, Famous Footwear, DSW, Shoe Carnival, TJX, Ross Stores, and Burlington Stores in order to become the premium brand it once was and to which it aspires to be," analysts say. Instead, the company's business at Foot Locker Inc. , Dick's Sporting Goods Inc. and Hibbett Sports Inc. is "floundering," analysts said. "In order to repair the Under Armour brand and protect their house (to recoin a phrase), Under Armour must, in our opinion, cut the cord with the moderate channel until the brand is repaired and product differentiation by channel is as clear as day," Susquehanna said. Under Armour shares have tumbled 7.1% in Monday trading, and are down 54.8% for the year to date. The S&P 500 index is up 2.1% for 2020 so far.
The athletics-inspired fashion retailer is not just surviving but thriving during the coronavirus crisis.
Hibbett Sports Inc. shares soared more than 18% in Tuesday trading after the athletic retailer gave a late-Monday second-quarter business update that includes a 70% same-store sales growth forecast. The FactSet consensus was for 15.7% growth. Brick-and-mortar same-store sales are expected to grow 60% and online sales are forecast to jump 200%. Hibbett says nearly all of its stores are open. Among the factors that Chief Executive Mike Longo attributes to the sales leap are stimulus checks and pent-up demand. New customers also contributed to the results, with 25% of brick-and-mortar sales and 40% of online sales coming from new shoppers. Hibbett Sports says it has paid back the $50 million it borrowed as a precautionary measure during the early days of the coronavirus pandemic. Raymond James analysts say Hibbett benefited from strong Nike Inc. sales, which accounts for 68% of the retailer's product. And the result bodes well for one of Hibbett's competitors, Foot Locker Inc. , which it calls "the single best global physical distribution point for premium athletic footwear." Analysts think Foot Locker is positioned to gain market share. "The bottom line is Hibbett's sales update provides credence to our view that athletic foot traffic in the U.S. could accelerate to a flattish to slightly positive growth rate by 3Q20," Raymond James said. Hibbett stock is down 5.1% for the year to date while the S&P 500 index is up 1.1% for the period.