UNDER ARMOUR STOCK CRASH 2017! - Is UA DONE?!

TL;DR

Under Armour is facing challenges in the athletic apparel market, with decreasing popularity among teens and poor financial performance. Investors should be cautious before considering an investment in the company.

Transcript

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Key Insights

• 👟 Under Armour's decline in popularity among teens reflects a broader trend in the athletic apparel market.
• 🉐 Competitors like Nike, Adidas, and American Eagle Outfitters have gained market share, while Under Armour has suffered.
• 😘 Under Armour's financial performance, including lower earnings and sales, has led to a revised outlook for the company and job cuts.
• 🤩 The bankruptcy of Sports Authority has significantly affected Under Armour's sales, highlighting the company's dependence on key customers.
• 😘 The current valuations of Under Armour may not be justified given its challenges and low growth projections.

Questions & Answers

Q: Why is Under Armour losing popularity among teens?

According to a survey, a third of teens now prefer non-athletic apparel brands, indicating a general decline in the popularity of athletic clothes among this demographic.

Q: How does Under Armour's financial performance affect its stock?

Under Armour's poor financial performance, including lower earnings and sales, has negatively impacted its stock price. Investors should consider these factors before making any investment decisions.

Q: Who are Under Armour's biggest customers?

Some of Under Armour's largest customers include Dick's Sporting Goods, Amazon, and its own stores. However, the bankruptcy of Sports Authority, one of its major customers, has significantly affected its sales.

Q: Should investors consider buying Under Armour stock at its current price?

The current stock price may not be justified given Under Armour's challenges and low growth projections. Investors should carefully analyze the company's prospects and market conditions before making any decisions.

Summary & Key Takeaways

• Under Armour is experiencing a decline in popularity among teens, with only 23% of them ranking it as their favorite apparel brand.

• The company is losing market share to competitors like Nike and Adidas, with Adidas doubling its market share and American Eagle Outfitters also gaining ground.

• Under Armour's financial performance has been disappointing, with lower-than-expected earnings and sales. The company has also announced job cuts and a revised outlook for the full year.