|Bid||12.81 x 1200|
|Ask||12.81 x 1300|
|Day's Range||12.53 - 13.24|
|52 Week Range||6.37 - 19.65|
|Beta (5Y Monthly)||1.09|
|PE Ratio (TTM)||N/A|
|Earnings Date||Apr 25, 2018 - Apr 30, 2018|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||13.50|
Yahoo Finance's Emily McCormick joins The First Trade with Alexis Christoforous and Brian Sozzi to discuss the latest quarterly earnings reports from Under Armour, Facebook, Google and Twitter.
Global fitness giant Under Armour announced this morning that it will be selling MyFitnessPal to investment firm Francisco Partners for $345 million, five and a half years after acquiring it for $475 million. In a press release announcing the news, Under Armour said the reason for this decision was to simplify and focus its brand, keeping it aimed at its "target consumer – the Focused Performer" in the interest of building "a singular, cohesive UA ecosystem." The fact that Under Armour is selling MyFitnessPal at a discount (not even including five years of inflation and stated MyFitnessPal user growth) indicates there's more to this than just maintaining focus.
(Bloomberg) -- Under Armour Inc. jumped the most in more than six months after posting third-quarter sales that beat estimates, a sign the sportswear brand is getting a boost from consumer preference for comfy sportswear in 2020.Sales in the quarter ended in Sept. 30 were $1.4 billion, beating the average estimate of $1.2 billion from analysts surveyed by Bloomberg. Revenue has stabilized and was flat year over over after two quarters of big declines due to the pandemic.Key InsightsIt was online ordering, not physical stores, that drove the beat. The company’s direct-to-consumer revenue increased 17% to $540 million, driven by continued strong growth in e-commerce. Wholesale revenue dropped as department stores and other retailers who carry the brand saw a decline in foot traffic. In a sign of its move to de-emphasize physical stores, the company will reduce some North America distribution points, executives said on a conference call with investors. The goal is to cut 2,000 to 3,000 distribution points in the region and have about 10,000 total by 2022.Under Armour also upped its guidance for the year. Revenue is now expected to be down at a high-teen percentage rate this fiscal year. It will drop by a low-teen percentage rate for the fourth quarter, better than the previous expectation for a 20% to 25% drop. Inventory is also expected to be up approximately 10% at the end of this year.Shoes were a bright spot. Even though apparel revenue decreased 6%, the footwear segment saw a boost of 19% and accessories revenue increased by 23%. That reflects the trend of more Americans exercising at home.The company also announced it would be selling its MyFitnessPal fitness-tracking app to Francisco Partners, a private equity firm, for $345 million. Under Armour bought it five years ago.Market InsightsUnder Armour’s shares rose as much as 12% in New York trading on Friday. They had dropped 37% this year through Thursday’s close, while the Standard & Poor’s 500 Index gained 2.5%.Get the statement here.(Updates share trading and adds detail from conference call)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.