|Bid||14.53 x 4000|
|Ask||14.67 x 800|
|Day's Range||14.51 - 15.05|
|52 Week Range||14.51 - 24.55|
|Beta (5Y Monthly)||0.60|
|PE Ratio (TTM)||72.85|
|Earnings Date||Apr 24, 2018 - Apr 29, 2018|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||17.50|
Moore Kuehn, PLLC, a securities law firm located on Wall Street in downtown New York City, is investigating potential claims involving directors and officers regarding possible breaches of fiduciary duties and other violations of law related to whether insiders, as alleged in federal securities lawsuits, caused their companies to make false and/or misleading statements and/or failed to disclose, among other things, that:
Under Armour (NYSE:UA,NYSE:UAA) is in trouble. Under Armour stock plunged 17% last week after its fourth quarter earnings release -- but that's not the only problem. In fact, that's not even the biggest problem.Source: 2p2play / Shutterstock.com The issues facing Under Armour go well beyond a single report. After all, investors knew before the earnings report that the company's turnaround was going to take time.Certainly, it isn't good news that Under Armour management itself believes little fundamental progress will be made in 2020. But that outlook would be tolerable if investors could have faith that progress was coming at some point.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIt's difficult, if not outright impossible, to have that faith at this point. Increasingly, Under Armour looks like a broken company. That, more than a single year's guidance, is the problem with Under Armour stock. How Under Armour Stock Got HereGive credit where credit is due. Under Armour, under founder and former chief executive officer Kevin Plank, pioneered an entirely new category of athletic wear. A company founded in 1996 had nearly $5 billion in sales two decades later -- and a market capitalization nearing $10 billion. * 7 Failing Tech Stocks to Disconnect From Now But since Under Armour stock peaked in 2016, pretty much everything has gone wrong. Strategically, the company erred by expanding distribution to weaker retailers like Kohl's (NYSE:KSS) and now-bankrupt Sports Authority. Those moves undercut the brand -- and the company's pricing power.Under Armour's assortment hasn't kept pace, either. While Lululemon Athletica (NASDAQ:LULU) drove market-leading growth in the "athleisure" category, Under Armour stayed stuck on the performance side. The company never truly has cracked the code in the women's market, and initial success in footwear thanks to a partnership with NBA superstar Stephen Curry has faded.It's the company's culture that might be the most concerning: a Wall Street Journal report in late 2018 detailed concerning behaviors among executives and questionable treatment of female employees.Under Armour promised to do better -- and, in some ways, it has. But UAA employees I spoke with still describe a toxic work environment and low morale. It's not difficult to get the sense that something is seriously wrong with Under Armour as a company. UAA Stock TanksUnder Armour's numbers certainly suggest that's the case. The culprit behind last week's sell-off wasn't fourth quarter results themselves. It was the guidance for 2020.The company is guiding for revenue to decline year-over-year by a "low single-digit" percentage. That comes after just 1% growth in 2019. In other words, 2020 sales should be roughly in line with those in 2018. In North America, revenues should decline as much as 10% over that stretch.It's only in relatively new international markets where Under Armour is seeing sales increase. At home, the company is losing to Nike (NYSE:NKE) and adidas (OTCMKTS:ADDYY).Bottom-line numbers are even worse: 2020 guidance is for earnings per share of just 10 cents to 13 cents; compare that to 2016, when the company generated 45 cents in EPS.That guidance suggests net margins at less than 0.5% of revenue. This is a company that just last year was promising operating margins over 10% by 2023. EPS was supposed to grow at a 40% annual rate for several years. Instead, guidance suggests net profits will fall 35-50% in 2020.This isn't the first time Under Armour has overpromised. Unless something changes soon, it likely won't be the last. The Bottom Line: Not Enough of a Bull CaseIt's possible Under Armour can find a way to a turnaround. Plank stepped down last year. Management last week floated the idea of another restructuring, which could reduce longer-term costs. Sub-1% margins are a worry now -- but they also leave substantial room for improvement.But there's just no evidence right now to suggest that improvement is coming. Nike and Adidas have caught up in performance wear. Lululemon dominates on the women's side. Under Armour, meanwhile, has lost its way. It will take years for the company to find it again.Matthew McCall left Wall Street to actually help investors -- by getting them into the world's biggest, most revolutionary trends BEFORE anyone else. The power of being "first" gave Matt's readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA) and +1,044% in Tesla (TSLA), just to name a few. Click here to see what Matt has up his sleeve now. Matt does not directly own the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Failing Tech Stocks to Disconnect From Now * 5 Ideal Dividend Stocks for New Investors * 4 Stocks to Buy No Matter Who Wins the 2020 Election The post It Can Absolutely Get Worse for Under Armour Stock appeared first on InvestorPlace.
Shares of Under Armour (NYSE:UAA) plunged in early February after the struggling athletic apparel maker reported mixed fourth quarter numbers that included a dismal 2020 guide. Of note, while Under Armour's profits in the fourth quarter matched analyst expectations, management guided for just 13 cents in earnings per share in 2020 (at best), versus a consensus sell-side estimate of 46 cents.Source: Sundry Photography / Shutterstock.com That means Under Armour projects to earn less than 30% of what Wall Street thought the company would earn this year. Investors naturally freaked out in response, and UAA stock fell by 20% to its lowest levels in over a year.At this point in time, I think it's smart to play the contrarian and buy the dip in Under Armour stock.InvestorPlace - Stock Market News, Stock Advice & Trading TipsMy rationale is simple. First, Under Armour's fundamentals are bad but not awful, and the company should keep growing. Considering that reality, shares seem undervalued here. * 7 Exciting Stocks to Buy for Aggressive Investors Second, the stock has formed formidable technical support at the $16 to $17 range over the past few years, and shares are presently closing in on those levels. And third, a big portion of the sell-off has to do with coronavirus anxiety, which ought to subside in the coming months.All in all, I like Under Armour stock on the dip. Over the next few months, I expect shares to find support around $16 to $17 and rebound back above $20. All is not LostUnder Armour's fourth quarter earnings report was bad and 2020 guidance was even worse. But all is not lost, and there are still plenty of things to like about this company.Sure, revenues rose just 4% in the fourth quarter, and are expected to drop by roughly 2% next year. That's not good. But Under Armour is still one of the four major players in the athletic apparel market, alongside Nike (NYSE:NKE), Adidas (OTCMKTS:ADDYY) and Skechers (NYSE:SKX). That market remains supported by secular adoption tailwinds. Granted, those tailwinds are stronger on the lifestyle side of the market, and less strong on the performance side (where Under Armour operates).Nonetheless, revenue erosion is unlikely to last beyond 2020, and market tailwinds coupled with easier laps will bring positive revenue growth back next year.Below the top-line, things actually aren't so bad. Gross margins rose by 230 basis points in the quarter amid supply chain enhancements and lower discounting. They are expected to rise another 40 basis points next year for the same reasons. Concurrently, while opex rates are rising, that's mostly because of sluggish revenue growth. Expenses rose just 2% in 2019. Continued moderate expense growth plus gross margin expansion lay the groundwork for profits to roar higher once revenue growth turns positive again.All in all, then, Under Armour is just getting stung by some near-term demand headwinds. These demand headwinds won't last. Once they pass, Under Armour will return to being a low single digit revenue growth and double-digit earnings growth company. Under Armour Stock is CheapAt current levels, there are two big things to like about Under Armour stock.First, the stock is cheap relative to the company's realistic earnings growth prospects. After this year, Under Armour should return to and sustain low single digit revenue growth, thanks to broader athletic apparel market tailwinds. Gross margins will keep moving higher as the company starts selling more into full-price channels and eases on discounting. Operating expense rates will compress as management maintains a ~2% expense growth rate.Putting all that together, from this year's projected 13 cents earnings per share base, Under Armour's profits will likely rise towards $1.25 by 2025. Based on an apparel retail sector-average 23-times forward earnings multiple and a 10% annual discount rate, that implies a 2020 price target for the stock of nearly $20.Second, the stock will find powerful technical support in the $16 to $17 range. Since early 2018, Under Armour stock has bottomed out at these levels several times, namely in April 2018, October 2018, December 2018, August 2019 and November 2019.It is fairly likely that shares once again find support at these levels. If they do, that means the worst of this sell-off is over, and the stock is due for a relief rally over the coming months. Bottom Line on UAA StockUnder Armour is struggling. These struggles will continue, but the valuation on Under Armour stock is cheap, and shares are running into multi-year technical support levels. As such, it makes sense to start buying the dip in Under Armour stock here. Over the coming months, it's quite likely that shares stabilize around $17 before popping back to $20.As of this writing, Luke Lango did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Exciting Stocks to Buy for Aggressive Investors * 20 Stocks to Buy From the Law of Accelerating Returns * 7 U.S. Stocks to Buy on Coronavirus Weakness The post Play the Contrarian And Buy the Dip in Under Armour Stock appeared first on InvestorPlace.
Lululemon is committing to provide its 20,000 employees mental health benefits. EVP Celeste Burgoyne made the announcement at the 2020 MAKERS Conference on Wednesday.
"The downgrade and review reflect Under Armour's ongoing challenges reinvigorating growth in its core North American market," stated Moody's Vice President, Mike Zuccaro. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating.
Under Armour Inc (NYSE: UAA) reported fourth-quarter results that prompted a big sell-off in the stock. Meanwhile, the company could reverse a prior decision to open a flagship New York City store in the heart of Manhattan on Fifth Avenue. Bank of America analyst Robert Ohmes maintains an Underperform rating on Under Armour's stock with an unchanged $15 price target.
Piper Sandler analyst Erinn Murphy downgraded Under Armour’s stock to Neutral, the equivalent of a Hold recommendation, from Overweight, or Buy.
Under Armour’s (UA) shares plummeted Tuesday after the company said it anticipates a big financial hit from the viral outbreak in China. The athletic gear maker expects the outbreak in China to drag its first-quarter sales down by $50 million to $60 million. Included in those charges would be $225 million to $250 million related to Under Armour possibly foregoing the opening of a flagship store in New York.
Under Armour Inc.’s new Chief Executive Patrik Frisk spent a fair amount of time on the Tuesday earnings call discussing the impact of the coronavirus, but other challenges are having just as much, if not more, of an effect on the business going forward. The ongoing struggle to turn around the North America business is also taking longer than the company expected. According to Frisk, Under Armour anticipated stabilization in the region by the end of 2019, with a return to growth in 2020.
Under Armour's problems are far from over.The firm is still facing significant headwinds since introducing over a year ago an ambitious five-year turnaround plan: Its stock lingered in the red throughout Tuesday on the heels of disappointing fourth-quarter sales and a softened outlook due to the coronavirus' potential to impact business.Further, Wall Street has continued to show a lack in confidence over the brand's ability to weather persistent challenges in North America and some analysts expressed concerns over its announcement today that it might need to restructure this year — a plan that would cost the company hundreds of millions of dollars."To thoroughly execute a strategic, operational and cultural transformation of this magnitude takes time," president and CEO Patrik Frisk said in the company's fourth-quarter earnings call. "And, quite simply, the realization of milestones and progress within certain areas of our business is taking longer than we anticipated."Here, the hurdles in Under Armour's way.Ongoing challenges in North AmericaIn its home turf, Under Armour has consistently faced heavy competition from athletic rivals Nike and Adidas as well as heavily depends on wholesale partners such as Kohl's — and Sports Authority, which went bankrupt in 2016 — that have seen challenges amid a changing retail environment. The Baltimore-based company continued to see lagging demand in North America during the fourth quarter despite expectations of "stabilization" by the end of last year and a "pivot back to growth" this year."Operationally, we continue to make positive strides, managing the marketplace and driving better operational discipline," Frisk said. "However, a combination of demand challenges and distribution dynamics is materially impacting our business."The brand said that such issues were most evident in its full-price wholesale and e-commerce businesses. For the full year, it predicted a mid- to high single-digit percentage decline for its North American arm.Potential restructuringDuring the call, Under Armour revealed that it was embarking on a restructuring plan that could add about $325 million to $425 million of pre-tax charges this year — with approximately $225 million to $250 million of that amount related to giving up plans to open a flagship store in New York City."The Fifth Avenue location is obviously a premier retail location, but we're considering whether it may be better suited for someone else at this time," CFO David Bergman said. "Regardless of whatever decision we make there, our lease obligation will remain in place, and we begin paying rent on that later this year, but we're continuing to evaluate that."Under Armour made headlines back in July 2016 when it announced a move to take over the roughly 53,000-square-foot space on Fifth Avenue formerly occupied by toy store FAO Schwarz — a high-traffic area only steps away from the Apple store on Fifth Avenue and across the street from Central Park.Impact of the coronavirusFor the three-month period ended Dec. 31, Under Armour's adjusted earnings per share were in line with analysts' expectations of 10 cents on losses of $15.3 million, compared with profits of $4.2 million a year ago. However, revenues came in lower than consensus bets of $1.47 billion, growing 4% to $1.44 billion.The company issued softened guidance, forecasting a sales hit of roughly $50 million to $60 million in the first quarter due to the coronavirus, with nearly 600 Under Armour stores in China currently closed. (The death toll has already surpassed 1,000 in mainland China, where the illness originated, and has infected more than 43,000 around the world.)"Along with all companies that do business there, our primary concern is for the health and wellbeing of the Chinese citizens, our teammates and partners and those affected around the world," Frisk said. "Given the ongoing uncertainty, it is possible that this situation could have a significant material impact, both financially and operationally on our full year."Want more?Why Under Armour's Stock Is Plummeting Double DigitsWhy Under Armour Hasn't Given Up on the Performance MarketUnder Armour Stock in Flux After Analysts Signal Concerns Over North America BusinessMore from Footwear News * Under Armour Employee Fatally Shot at Florida Store * Why Under Armour's Stock Is Plummeting Double Digits * Best Shin Guard Sleeves for Kids and Teens
The S&P 500 and Nasdaq notched record closes on Tuesday, but the Dow finished virtually unchanged. Investors attributed optimism surrounding equities to signs of a slowdown of new cases of COVID-19 in China, while the top Federal Reserve chief said the central bank is monitoring the economic impact of the viral outbreak. The S&P 500 (SPX) advanced 5.66 points, or 0.2%, to 3,357.75, and the Nasdaq Composite Index (COMP) rose 10.55 points, or 0.1%, to finish at 9,638.94, with both indexes notching all-time closing highs.
U.S. stocks closed mostly higher Tuesday, with the S&P 500 and Nasdaq Composite each posting a record finish, after a firm round of corporate earnings offset concerns about the spread of the coronavirus. The Dow Jones Industrial Average was virtually unchanged at about 29,276 while the S&P 500 rose about 6 points or 0.2%, closing near 3,358. The Nasdaq Composite Index jumped 0.1%, adding about 11 points to close near 9,639. Shares of Under Armour Inc. slid nearly 17% after the athletic apparel maker's results fell short of analyst expectations and guided lower.
Under Armour earnings met views, but sales came in light. The Nike rival gave weak 2020 guidance, partly due to coronavirus impact. Shares plunged Tuesday.
After a difficult fourth quarter, CEO Patrik Frisk tried to temper investor expectations noting that the turnaround will require time and "tough decisions."
Under Armour stock is on track for its worst decline in more than a year, after management’s forecasts for 2020 disappointed Wall Street.
The Dow Jones Industrial Average, S&P 500 and Nasdaq Composite all hit new 52-week highs on Tuesday. That said, let's look at a few top stock trades as the gains keep on coming. Top Stock Trades for Tomorrow No. 1: Amazon (AMZN) Click to Enlarge Source: Chart courtesy of StockCharts.comAmazon (NASDAQ:AMZN) stock continues to climb higher, now putting together three consecutive weeks in the green (provided it closes higher this week).The stock is now breaking out cleanly over $2,000, and has hurdled the $2,025 level as well. It's vital for AMZN stock to hold above this zone now, as it will keep bulls in control following this big-time breakout that's been in the making for quite some time.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 U.S. Stocks to Buy on Coronavirus Weakness On the upside, see if Amazon can pierce $2,200, with the 1.382% extension of the one-year range up at $2,207. On a pullback, I'd like to see $2,025 to $2,050 act as support -- along with the 10-week moving average if it can catch up and clear this level too. Top Stock Trades for Tomorrow No. 2: Under Armour (UAA, UA) Click to Enlarge Source: Chart courtesy of StockCharts.comUnder Armour (NYSE:UAA, NYSE:UA) is getting crushed on Tuesday, down roughly 20% after disappointing quarterly results.Shares are now plowing through any sort of nearby support, as it gaps below the 50-day and 100-day moving averages, as well as $20 support. Now, bulls must do their best to reclaim and hold the $17 mark. Below keeps the December 2018 low on the table, near $16.50. However, the stock did reach that point earlier on Tuesday -- setting a new 52-week low.Nonetheless, any further below that, and the technicals will be quite damaged. Top Stock Trades for Tomorrow No. 3: Facebook (FB) Click to Enlarge Source: Chart courtesy of StockCharts.comFacebook (NASDAQ:FB) stock continues to waver, as the recent trading range continues to tighten.Let's keep it simple, but nimble. On a move over $213, Facebook stock may have some short-term momentum. In that case, look to see how it handles the $218 to $220 zone. Above it puts $222.50-plus, and the 52-week high on the table. * 3 Great Emerging Markets Stocks for International Diversification On the downside, though, a move below the 20-week moving average and $202.50 puts the $190 to $195 level on watch -- with the 50-week moving average coming into play near the former. Top Stock Trades for Tomorrow No. 4: FedEx (FDX) Click to Enlarge Source: Chart courtesy of StockCharts.comOver the last two weeks, FedEx (NYSE:FDX) stock gave investors a "look below" and reverse. Meaning that it broke below support, but then reclaimed it in the next candle. Now squeezing higher, FDX may have trapped some short sellers who were looking for more downside.For more upside, though, we need to see FDX reclaim the declining 50-week moving average and downtrend resistance (blue line). Over downtrend resistance, and a move to $175-plus is possible.If resistance holds, however, look for another test of support down near $148 to $150. Below that puts the recent low of $143 on the table, along with the fourth-quarter low of $137. Top Stock Trades for Tomorrow No. 5: Hasbro (HAS) Click to Enlarge Source: Chart courtesy of StockCharts.comHasbro (NASDAQ:HAS) opened significantly higher, but has all but given up its post-earnings gains on Tuesday.It's been a tough session for bulls to swallow. At the open, HAS stock had gapped above and reclaimed the 50-day, 100-day and 200-day moving averages -- as well as notable resistance at $105.However, the stock was unable to hold those gains -- even for a few hours -- as HAS stock is now back below all of these marks.For now, I wouldn't be a buyer of Hasbro stock unless it's able to reclaim $105 and its major moving averages. If it can, it puts the post-earnings high near $110 on the table. Above that, and HAS can continue to fill the gap up toward $117.50.On a dip, however, see if uptrend support (blue line) buoys the stock. Below that puts the $93 mark on the table.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long AMZN. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 U.S. Stocks to Buy on Coronavirus Weakness * 7 Strong Value Stocks to Buy for 2020 * Are All the Top 10 Warren Buffett Stocks Worth a Buy? The post 5 Top Stock Trades for Wednesday: AMZN, UAA, FB, FDX, HAS appeared first on InvestorPlace.
For the year, Under Armour said it expects sales to be down a “low single-digit percent” compared to 2019’s lackluster results. “First and foremost, I am not satisfied with where we are today,” CEO Patrik Frisk said as he began a call with investors and analysts today—his first since taking over Under Armour’s top job on Jan. 1, when he stepped into the role previously held by founder and longtime chief Kevin Plank. Due to the new strain of coronavirus upending life and business in China, the company estimates lost sales of roughly $50 million to $60 million in the first quarter resulting from closures of Under Armour or partner-owned stores and disruptions to its supply chain.
A passenger who was repatriated from Wuhan, China, on a U.S. flight and has been in quarantine in San Diego is the latest individual in the U.S. to test positive for the coronavirus, according to media reports.
Under Armour’s struggles in North America showed up in its Q4 earnings results. “I’m not satisfied with where we are today,” said new Under Armour CEO Patrik Frisk, who took over for the company’s first CEO and founder Kevin Plank in January.
Under Armour missed earnings estimates and warned that the coronavirus could hurt its already weak outlook for 2020. On July 30 and Nov. 4 the athletic-apparel retailer beat earnings estimates, but weak guidance resulted in huge price gaps lower. What's interesting is that today's earnings report was for the quarter ended in December.
Under Armour wants to focus on cost cutting after its effort to regain sales growth in North America has taken longer than expected.