Under Armour, Inc. (UAA Under Armour Inc UAA 16.40 +1.55%) shares have fallen nearly 45% this year as the company deals with slowing demand for sporting and “ath-leisure” apparel as well as issues with its branding efforts in the NBA category. Management remains confident that it can restructure the business with a customer-led approach and focus on digital sales, but the market remains skeptical about its ability to execute given the lower guidance issued this year.
In late January, Under Armour stock fell almost 20% lower after fourth quarter results failed to meet expectations. Revenue increased 12% to $1.31 billion – falling $100 million short of consensus estimates – while earnings per share of 23 cents missed estimates by two cents per share. Since then, the stock has continued to slide despite improving performance, as retailers Foot Locker, Inc. (FL Foot Locker Inc FL 36.36 +3.21%) and The Finish Line, Inc. (FINL Finish Line Inc FINL 8.70 +4.44% ) have lowered their guidance for the coming quarters. (See also: Nike, Under Armour Shares Slip on Adidas Pressure.)
Shares have declined this year, but some technical indicators point to oversold levels and consolidation ahead. …read more
Read more here: Is Under Armour Stock Approaching Oversold Levels?
Category: UAA, FL, FINL