Under Armour reported an unexpected loss and sales below estimates as the company grappled with global supply chain challenges and Covid lockdowns in China. The athletic apparel retailer’s stock fell as it also issued profit guidance that came in below Wall Street estimates.
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Why is Under Armour stock going down?
The company’s stock traded lower as the company’s growth slowed down due to supply chain challenges, rising costs, and Covid-19 disruptions in China. Under Armour was unable to obtain the inventory needed to satisfy consumer demand in the March-ending quarter, due to supply chain disruptions.
Is Under Armour still in business?
Despite the short-term difficulties, expected to linger into the upcoming fiscal year, Under Armour President and CEO Patrik Frisk said the Baltimore-based athletic apparel maker has succeeded with a now completed multi-year turnaround plan designed to restore the brand’s luster.
What is the future of Under Armour?
The athletic apparel company is benefiting from the ongoing turnaround as seen from its record financials in 2021. Its full-year 2021 revenues grew 27% year-over-year (y-o-y) to $5.7 billion and adjusted earnings grew to 85 cents from a loss of 26 cents in 2020.
How is Under Armour performing?
Under Armour reported net income of $109.7 million, or 23 cents a share, compared with $184.5 million, or 40 cents a share, a year earlier. Excluding one-time items, it earned 14 cents a share, beating analysts’ estimates for 7 cents. Revenue grew to $1.53 billion from $1.4 billion a year earlier.
Is Under Armour a good investment?
One of the top athletic apparel brands has been a lousy investment over the last 10 years. Shares of Under Armour (UA 4.67%) (UAA 5.86%) are down 28% since April 2012, underperforming the S&P 500 return of 209%.
Is UA stock a buy?
The Under Armour Inc Class C stock holds a sell signal from the short-term moving average; at the same time, however, there is a buy signal from the long-term average. Since the short-term average is above the long-term average there is a general buy signal in the stock giving a positive forecast for the stock.
Is Under Armour made in China?
Substantially all of our products are manufactured by unaffiliated manufacturers. In 2016, our apparel and accessories products were manufactured by primary contract manufacturers, operating in 18 countries, with a majority of our apparel and accessories products manufactured in Jordan, Vietnam, China and Malaysia.
Will Under Armour bounce back?
Ultimately, Under Armour still has the potential to deliver outsize gains if the tide turns, and it has made meaningful strides in streamlining its products and balance sheet, but it looks like the stock will struggle to bounce back in the near term.
Is Under Armour in trouble?
Under Armour Inc. sank the most in five years after an earnings report revealed it’s struggling with supply-chain issues and pandemic-related shutdowns in China. Revenue is projected to rise 5% to 7% in the fiscal year ending in March, the company said Friday in a statement.
Is Under Armour a good company?
Labour conditions. On the labour front, Under Armour is rated ‘Not Good Enough’. While some of its supply chain is certified by FLA Workplace Code of Conduct (including all of the final stage of production), the brand lacks transparency and received a score of 21-30% in the Fashion Transparency Index.
Which company owns Under Armour?
Growth. Under Armour received its first big break in 1999 when Warner Brothers contacted Under Armour to outfit two of its feature films, Oliver Stone’s Any Given Sunday and The Replacements.
Is Under Armour losing money?
Under Armour reported a net loss for the quarter of $59.6 million, or 13 cents per share, compared with net income of $77.8 million, or 17 cents a share, a year earlier. Excluding one-time items, it lost a penny per share. Analysts had been looking for adjusted earnings per share of 6 cents.
Is Under Armour out of style?
The company has held the No. 1 spot in the “brands no longer worn” category specific to teenage upper-income males for the last four seasons. Also, Under Armour’s rankings in apparel in footwear fell significantly, with apparel dropping to No. 20 from No.
Who is Nike’s biggest rival?
Adidas
Established in 1949, Adidas is a global brand and Nike’s top competitor. Nike vs. Adidas rivalry cuts across different sectors from footwear, apparel, and sports equipment, and accessories.
Is Under Armour Undervalued?
Athleisure apparel and footwear maker Under Armour (NYSE: UAA) stock has been falling within the proximity of revisiting its pandemic lows. Athleisure apparel and footwear maker Under Armour (NYSE: UAA) stock has been falling within the proximity of revisiting its pandemic lows.
Is UAA a good stock?
Out of 24 analysts, 5 (20.83%) are recommending UAA as a Strong Buy, 5 (20.83%) are recommending UAA as a Buy, 13 (54.17%) are recommending UAA as a Hold, 0 (0%) are recommending UAA as a Sell, and 1 (4.17%) are recommending UAA as a Strong Sell.
Is under Armour profitable?
Under Armour projected an adjusted per-share profit between 63 cents and 68 cents for fiscal year 2023, below Refinitiv estimates of 83 cents. It sees 5% to 7% growth in sales, while analysts expect a 5.4% increase.
Does Under Armour pay dividends?
Does Under Armour pay a dividend? At the present time we do not pay a dividend on our common stock.
What is the difference between UA and UAA stock?
UAA Stock Differences. The most striking difference between UA stock and UAA stock is that the former has no voting rights, while the latter has one vote per share. The ticker “UA” represents Class C shares, while “UAA” represents Class A voting shares.
Does Under Armour use child labor?
Auditing Process The UA Supplier Code of Conduct explicitly prohibits the use of forced labor, child labor, slavery and human trafficking.