Under Armour: Misses Sales Forecast, Stock Down 30%

[BigDrop]

http://finance.yahoo.com/m/234a6bba-8568-34be-bf01-5ebedeed17a2/ss_under-armour-earnings%2C-sales.html Under Armour reported this morning and missed in several key areas.  Their CFO is also stepping down.  Under Armour is a major sponsor of Washington, D. C.'s St. John's https://www.washingtonpost.com/local/education/under-armour-founder-gives-16-million-to-st-johns-college-high/2015/11/06/7adc7724-84bf-11e5-9afb-0c971f713d0c_story.html?utm_term=.f42d06bf2288 and also participates with IMG.  In the premarket their stock UAA has fallen to a three year low.  It will be interesting to see if this has any effect on St. John's and IMG in the upcoming season.  Note that St. John's is travelling to Concord, CA to play De La Salle.  

[noonereal]

14 minutes ago, BigDrop said:

http://finance.yahoo.com/m/234a6bba-8568-34be-bf01-5ebedeed17a2/ss_under-armour-earnings%2C-sales.html Under Armour reported this morning and missed in several key areas.  Their CFO is also stepping down.  Under Armour is a major sponsor of Washington, D. C.'s St. John's https://www.washingtonpost.com/local/education/under-armour-founder-gives-16-million-to-st-johns-college-high/2015/11/06/7adc7724-84bf-11e5-9afb-0c971f713d0c_story.html?utm_term=.f42d06bf2288 and also participates with IMG.  In the premarket their stock UAA has fallen to a three year low.  It will be interesting to see if this has any effect on St. John's and IMG in the upcoming season.  Note that St. John's is travelling to Concord, CA to play De La Salle.  

These sponsorships are contracts. It will have no impact on any existing penned deals. Will under armour reset strategic objectives as a result? Likely. But I would think shutting down or reducing partnerships (sponsorships) is unlikely. 

 

[BigDrop]

https://client.schwab.com/secure/cc/research/stocks/stocks.html?path=/research/Client/Stocks/News/&symbol=UAA

"The company also forecast 2017 sales well below analysts' estimates."  The stock traded about 42 or so (before split) in January, 2014.  In the premarket it is 21-22 a share.  There seems to be strength at this number.  Given their plans for Baltimore and the state of Maryland where I grew up I really would like to see them succeed.  

[noonereal]

13 minutes ago, BigDrop said:

https://client.schwab.com/secure/cc/research/stocks/stocks.html?path=/research/Client/Stocks/News/&symbol=UAA

"The company also forecast 2017 sales well below analysts' estimates."  The stock traded about 42 or so (before split) in January, 2014.  In the premarket it is 21-22 a share.  There seems to be strength at this number.  Given their plans for Baltimore and the state of Maryland where I grew up I really would like to see them succeed.  

I am not much of a fan because they are not authentic outside of their core product and have built the brand on marketing, not innovative performance product. 

Most their failing are from an attempt to fast track their growth, as stated, to satiate their compulsion to over take Nike. 

They deserve these setbacks. 

[NicholasMalibu]

2 hours ago, BigDrop said:

http://finance.yahoo.com/m/234a6bba-8568-34be-bf01-5ebedeed17a2/ss_under-armour-earnings%2C-sales.html Under Armour reported this morning and missed in several key areas.  Their CFO is also stepping down.  Under Armour is a major sponsor of Washington, D. C.'s St. John's https://www.washingtonpost.com/local/education/under-armour-founder-gives-16-million-to-st-johns-college-high/2015/11/06/7adc7724-84bf-11e5-9afb-0c971f713d0c_story.html?utm_term=.f42d06bf2288 and also participates with IMG.  In the premarket their stock UAA has fallen to a three year low.  It will be interesting to see if this has any effect on St. John's and IMG in the upcoming season.  Note that St. John's is travelling to Concord, CA to play De La Salle.  

It won't affect SJC for a while if it does at all. UA/Plank employs youth league coaches who direct the best kids in the DC-Baltimore metro to SJC with the promise of free tuition(20k a year). They also have the $20mm+ donation by Plank himself to fall back on if UA doesn't pay for the trip cost upfront. 

The only way that I could see this story affecting SJC is if the downturn forces UA to cut the youth marketing budget. If that happened, these youth league coaches would have zero reason to send their kids to SJC or call other schools for transfers. At that point, the WCAC could not turn a blind eye to SJC's recruiting. It's absolutely on the level of IMG, just hidden much better. 

IMO, I think nothing changes on Military Road NW DC. That place holds a very special place in Planks heart. I can't say with 100% certainty that I wouldn't do the same for DeMatha if I was in his position. 

I loved UA tee shirts when they first hit the market. Other than that, I don't buy the stuff. 

[Cossacks]

Not surprised, most of their stuff is garbage.

Worst case scenario SJC takes the Greyhound route to Concord from DC. Great way for those kids to see the country.

[Rufus69]

Lime Sink supports Brooks.

 

 

Rufus>>

[954gator]

13 hours ago, BigDrop said:

  Note that St. John's is travelling to Concord, CA to play De La Salle.  

That will definitely be an interesting matchup. 

[Cossacks]

3 hours ago, 954gator said:

That will definitely be an interesting matchup. 

Yes I do plan on going to this.

[TIGERPAW]

On 1/31/2017 at 7:46 AM, BigDrop said:

http://finance.yahoo.com/m/234a6bba-8568-34be-bf01-5ebedeed17a2/ss_under-armour-earnings%2C-sales.html Under Armour reported this morning and missed in several key areas.  Their CFO is also stepping down.  Under Armour is a major sponsor of Washington, D. C.'s St. John's https://www.washingtonpost.com/local/education/under-armour-founder-gives-16-million-to-st-johns-college-high/2015/11/06/7adc7724-84bf-11e5-9afb-0c971f713d0c_story.html?utm_term=.f42d06bf2288 and also participates with IMG.  In the premarket their stock UAA has fallen to a three year low.  It will be interesting to see if this has any effect on St. John's and IMG in the upcoming season.  Note that St. John's is travelling to Concord, CA to play De La Salle.  

This is such nonsense.  Like saying Microsoft stock is down causing Big Drop to vote for Trump in next election.  

[Svargas19]

Wow anyone think it's a good time to buy?

[Guest LOSer]

1 hour ago, Svargas19 said:

Wow anyone think it's a good time to buy?

[CCBlackhatter]

2 hours ago, Svargas19 said:

Wow anyone think it's a good time to buy?

I rolled my dice on them. Hoping for a bounce back now.

[BigDrop]

8 hours ago, CCBlackhatter said:

I rolled my dice on them. Hoping for a bounce back now.

There is a great deal of strength at 21-22 for UAA.  Split adjusted this is the 42 UA traded for after falling from the low '60's a couple of years back.  I believe that a key is their not falling below the 20-21 level.  If they did you can look at the stock's history for the next level of support.  The city of Baltimore, the state of Maryland as well as St. John's and the University of Maryland are certainly pulling for Kevin Plank and his company, too.

And I.  I really want Under Armour to succeed.

And DeMatha to continue to beat them in football.

[BigDrop]

http://finance.yahoo.com/quote/UAA?p=UAA is Yahoo Finance for Under Armour ( UAA ) which includes the five year chart.  Today, Under Armour traded at 20.50.  Previous low was 20.49 on January 17, 2014.  On Yahoo you can research individual daily highs and lows back into 2012.  Note the last quarter of 2013.  I believe this is approximately the key support level for UAA and it is there right now as I type this.

Then there is this:

http://finance.yahoo.com/news/important-shareholder-alert-khang-khang-171400919.html

http://finance.yahoo.com/news/investor-alert-law-offices-howard-153000262.html

I am guessing these are the reasons for the drop today.  I have no comment on them, absolutely no knowledge but believe you should be aware of them.

[BigDrop]

Under Armour traded at 19.99 today.  This is from The Street.com (Kramer):  https://www.thestreet.com/story/14027443/1/can-under-armour-get-back-in-the-game.html?puc=yahoo&cm_ven=YAHOO&yptr=yahoo  The time of the article is 4:56PM.  Not sure if it actually appeared earlier.  It could have effect on the price of the stock tomorrow. http://finance.yahoo.com/quote/UAA/community?p=UAA is the message board for UAA on Yahoo finance.  Not sure if this will be of any help but it is interesting to read.  Wild card in all of this is Trump.  I mean this in two ways:  domestically, will Plank's comments have any impact on sales?  and, internationally, there are two considerations.  One is Trump (he's not that popular outside of the U. S. and UAA now has an association with him and two, the U. S. dollar is very strong (i.e. $1.05 to the Euro).  Depending on where UAA is manufactured this could be a distinct disadvantage to equipment and clothing which is manufactured in the U. S.

On 2/1/2017 at 0:50 PM, CCBlackhatter said:

I rolled my dice on them. Hoping for a bounce back now.

For all reading this many of you know that I am not a Trump supporter.  But, I honestly do not mean this as a political rambling to anger anyone.  Rather, that "buying American" or visiting America or working or going to school in America can all be influenced by our image offshore.  American goods suffer or prospecr because of this, too.  

Anyway, I offer my opinions and the links above as reading matter for CCBlackhatter and anyone else who owns UAA or who might be thinking about buying it now.  Please take my comments with a tablespoon of salt (not a grain!!).  And, a bit of explanation:  as a retiree and for the last 15 or so years before I retired I made the decision that it bothered me more to lose money than it pleasured me to make money.  The result is that I bought I lot of municipal bonds (tax deductible, some double tax deductible), REITS (Real estate investment trust) state muni funds, Vanguard Wellesley (65% bonds and fixed income and 35% large cap dividend paying stocks) and bond funds like PONDX, DBLTX (Jeff Gundlach) and Vanguard Wellington (65% stocks and 35% bonds).   

Best of luck to everyone, including me, too!!!!

[BigDrop]

• UAA traded at 19.26 today which is a strong support level.  If it drops below this the next level is 15-16

[legendsofthefall]

Not really a fan of their clothing. Then again I'm not a big fan of Nike either. 

[aZjimbo]

On 1/31/2017 at 5:46 AM, BigDrop said:

http://finance.yahoo.com/m/234a6bba-8568-34be-bf01-5ebedeed17a2/ss_under-armour-earnings%2C-sales.html Under Armour reported this morning and missed in several key areas.  Their CFO is also stepping down.  Under Armour is a major sponsor of Washington, D. C.'s St. John's https://www.washingtonpost.com/local/education/under-armour-founder-gives-16-million-to-st-johns-college-high/2015/11/06/7adc7724-84bf-11e5-9afb-0c971f713d0c_story.html?utm_term=.f42d06bf2288 and also participates with IMG.  In the premarket their stock UAA has fallen to a three year low.  It will be interesting to see if this has any effect on St. John's and IMG in the upcoming season.  Note that St. John's is travelling to Concord, CA to play De La Salle.  

Must be Trump's fault.

[BigDrop]

My comment is a real one:  outside of the U. S. there is an appeal to American products and to visiting the U. S.  This can be influenced by political events. Even though I am retired (after representing European and Canadian manufacturers as well as involvement in my industry's trade association for over 30 years) I still talk to many that I worked with and built friendships with.  A day doesn't pass without a comment about Trump and what is happening here.  

For anyone reading this take a look at the websites below any day.  On almost every day Trump and Americans' reactions to him are one of the lead stories around the world.  All of these are their homepages.  The articles, news reports and comments will speak for themselves.

BBC (UK) http://www.bbc.com/news

Vancouver, BC Sun http://vancouversun.com/

Straights Times (Singapore) http://www.straitstimes.com/global

Sydney Morning Herald (Australia) http://www.smh.com.au/

Local.DE (Germany's version of USA Today) https://www.thelocal.de/

France 24 http://www.france24.com/en/

The Cape News (Caoe town, South Africa) http://www.iol.co.za/capetimes

[skipper]

First and foremost, they have a substandard product as compared to their competitors.  Their stuff looks good, but doesn't perform.  Every coach and player that I know hate their footballs.  Their cleats do not perform very well.  Kevin Plank invested many thousands of dollars in the St. Johns team with a new coach and several new players and got no return on that investment.  The ill-advised comments about Trump, etc.  I can see why investors have lost confidence in the company.  Like Uber, Under Armour needs some help.