Under Armour, Inc

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UA
Under Armour, Inc NYSE
 
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Important events

May 202022

Under Armour CEO stretched too thin

Struggling athletic-wear brand Under Armour is saying goodbye to its CEO as it tries to get the balance sheet into positive territory.

  • Under Armour shares plummeted nearly 16% on Thursday to hit its lowest point since June 2020 and erase pretty much all of its pandemic gains, coming within $3 of an all-time low.
  • Investors were reacting to CEO Patrik Frisk’s unexpected departure from the company. Frisk has been with the company since 2017 and has been leading its restructuring efforts – now, the business says it’s ready to shift its plans to a growth model, with a new exec at the helm.
  • It could have something to do with its recent earnings, which sent the stock hurtling down by over 25% after earnings revealed that supply obstacles and fresh lockdowns in China were seriously hurting the business. COO Colin Browne will take over in the interim until the brand finds a new CEO.
Taylor Siebert / Unsplash

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May 092022

Under Armour trips over supply hurdles

Under Armour is losing its position on the earnings podium after its soles get worn down by supply chain disruptions and covid.

  • Shares lost a quarter of their value on Friday, down over 25% to hit their lowest level since September 2020 following a surprise loss and missing on both ends in Q1 with LPS of $0.01 on revenues that were up only 3% to hit $1.3bn.
  • China left a huge dent in the armor. CEO Patrik Frisk cited “global supply challenges and emergent COVID-19 impacts in China” to explain the drastic swing to un-profitability – China is important for Under Armour, for both sales and manufacturing, and the region saw a 14% decline in sales compared to 4% growth in North America.
  • It’s set to fall further behind in the sales race, forecasting flat to declining sales in the current quarter. The declines are in stark contrast to the pandemic-driven boom in demand for athleisure wear the last few quarters, and the industry seems to be suffering across the board with Adidas issuing a similar warning for investors.
See all reported financials
Austin Kirk / Flickr
Feb 142022

Getting under the armor

Current quarter guidance proves to be the Achilles heel of an otherwise strong earnings report, and share prices get wounded.

Key Points:
  • The stock marched down over 11% on Friday despite its earnings release topping on both ends with EPS of $0.14 (double the $0.07 expected) on top of revenues of $1.53bn, partly thanks to covid-induced surge in activity.
  • Investors were reacting to uncertain guidance. A combination of supply constraints, heightened freight expenses, and the fact that it’s using this quarter to change its fiscal year meant EPS guidance of between $0.02 and $0.03.
  • The added pressures are just a “temporary speed bump”, according to CEO David Bergman, who has been trying to make Under Armour a more luxury brand that can compete with the likes of Nike (NKE) and Lululemon (LULU).
See all reported financials
Taylor Siebert / Unsplash
Nov 032021

Under Armor takes the podium

Sports apparel company Under Armour puts its best foot forward with impressive earnings.

  • Stock sprints 14% on Q3 report: Earnings beat on both ends with a 20% increase in EPS.
  • Under Armour also doubled its FY earnings forecast. The company is expecting a 25% increase in revenue.
  • Gold star for new CEO: Patrick Frisk joined in 2019 to help the brand get over its #MeToo moment.