Under Armour NYSE: UA; UAA obuwie, odzież sportowa

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Under Armour Stock Tumbles As Supply Chain Caution Clouds Q4 Earnings Beat

Under Armour said Covid-linked supply chain disruptions would impact its spring and summer order book and pressure gross profit margins.

Under Armour (UAA) - Get Under Armour, Inc. Class A Report shares slumped lower Friday after the sports apparel group posted stronger-than-expected fourth quarter earnings but noted that Covid-linked supply chain disruptions would have impact its spring and summer orders.

Under Armour said adjusted earnings for the three months ending in December came in at 14 cents per share, up 16.7% from the same period last year and double the Street consensus forecast. Group revenues, Under Armour said, rose 9% to $1.5 billion, again topping the consensus analysts' estimate of a $1.47 billion tally.

Looking into the 2022 financial year, Under Armour said it sees "a mid single-digit" percentage growth rate for revenues over the first quarter, up for a prior forecast for "low single-digit" gains, even as it noted "headwinds related to reductions in our spring-summer 2022 order book from supply constraints associated with ongoing COVID-19 pandemic impacts."

https://www.thestreet.com/markets/under ... rofit-beat

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Keurig Dr Pepper Inc. (NASDAQ:KDP) is gaining 7.9% in pre-open trading Monday after being added to the S&P 500.

On Friday, S&P Dow Jones Indices announced that Keurig Dr Pepper would replace Under Armour Inc. (NYSE:UA) in the index.

The change will be effective prior to the open of trading on Tuesday, June 21, (post close on Friday, June 17) to coincide with the quarterly rebalance.

S&P said the charges are being made to ensure each index is more representative of its market capitalization range.

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Under Armour (NYSE:UAA) cut its full-year earnings guidance, but reported in-line quarterly earnings, and revenue that topped Wall Street estimates, sending its shares more than 1% higher.

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Under Armour has 'new avenues to growth' - Stifel

Stifel upgraded Under Armour Inc (NYSE:UAA) (NYSE:UA) to Buy from Hold, raising its price target on the stock to $12 from $9 in a note to clients on Monday.

Analysts said in a note to clients that relative inventory management discipline leaves Under Armour with better margin certainty and in a better position to bring newness to market in CY23.

In addition, the analysts said the firm "expect systematic risk from an inventory glut of larger competitors clears by 2H."

"Considering the inventory glut across footwear and apparel complex, the proactive decision to cut orders was prescient. Looking forward, a refined strategy opens the aperture for the brand to expand beyond athletic performance to address other wearable occasions in a young athlete's lifestyle. This triples the addressable market and opens new avenues to growth," they wrote.

"With tightening lead-times, we see tailwinds to cash flow in CY23 and believe net cash balances could be >25% of the current market cap. With a strong balance sheet, improving earnings and new leadership (CEO announcement expected this month), we expect investor focus shifts to growth and structural margin opportunities. Our 12 mos. TP of $12 per share represents 8.4X TEV/EBITDA on FY25 EBITDA estimates of $602mn," they concluded.

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Under Armour (NYSE:UAA) reported quarterly results that beat on both the top and bottom lines, but its shares fell 8% as promotional activity is expected to continue to weigh on gross margins just as inventories continue to grow.

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Under Armour (NYSE:UA) stock fell 1.78% after JPMorgan downgraded the sports clothing retailer to 'neutral' from 'overweight', citing a prolonged period for the company to work through "inventory overhang."

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(Reuters) -Under Armour Inc forecast annual sales and profit below Wall Street expectations on Tuesday in a sign that persistent inflation was hampering demand and higher discounts were eating into profit margins, sending its shares down 5% before the bell.

As recession fears grow in the United States, cost-conscious consumers have been restricting their spending on discretionary products such as home goods, apparel and electronics to focus more on essentials.

The apparel maker's results were in contrast to rival Nike Inc (NYSE:NKE) and industry peer Lululemon Athletica (NASDAQ:LULU) Inc, who have seen a steady demand for their products in the recent quarter despite an inventory glut.

Gross margins declined 310 basis points to 43.4% as the company offered higher discounts and promotions to get rid of surplus products.

Revenue in the fourth quarter topped estimates, helped by a 3% jump in its largest market, North America, while Asia Pacific revenue surged 31% on currency neutral basis.

Footwear sales jumped 27%, while apparel rose just 1% and accessories fell 1%.

The company expects fiscal 2024 net sales to be flat to slightly up, compared with analysts expectations of 3.7% growth.

Under Armour (NYSE:UA) also expects diluted earnings per share to be between 47 cents and 51 cents in 2024. Analysts were expecting a profit of 61 cents, according to Refinitiv data.

Its net revenue rose 7.5% to about $1.40 billion in the quarter ended March 31 compared with analysts' average estimate of $1.36 billion.

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Under Armour (NYSE:UAA) shares fell more than 3% in pre-market Thursday after Wells Fargo analysts lowered the rating to Equal Weight from Overweight.

The lowered price target to $8 per share (from the prior $12) reflects slashed FY25 EPS estimates. The analysts believe that UAA is likely to remain range bound for the next 6-12 months as the recovery story is slowly turning into a “show-me” story.

The three key drivers of the downgrade move are: 1) Outsized NA wholesale exposure (50%+ of revs), 2) elevated inventory (both UAA and in channel), and 3) recent C-Suite reshuffling (new CEO in place for <6 months, needs time to implement strategy).

“While FY24 EPS guidance is reasonable, we do see risk on the top line (flat to slightly + guide), given demand dynamics in NA & EMEA,” the analysts said in a downgrade note.

Despite a strong market rally in 2023, Under Armour shares are down over 27% year-to-date.

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Under Armour revenue slips amid 'challenging' retail environment

Investing.com -- Under Armour (NYSE:UA) has reported a decline in first-quarter net revenue, but still slightly beat estimates, as a dip in expenses and e-commerce demand helped mitigate the broader impact of a recent slowdown in consumer spending.

The company has been rolling out larger discounts in an attempt to woo inflation-hit customers wary of shelling out cash on its form-fitting athletic shirts and other exercise gear, although this strategy and input cost pressures have squeezed margins.

Net revenue fell by 2% to $1.32 billion in the three months until the end of June, marginally above Bloomberg consensus estimates of $1.3B. A slip in wholesale revenue was tempered by Under Armour's e-commerce business, which helped boost direct-to-consumer sales by 4% to $544M.

A 12% surge in international revenue, driven in particular by strong returns in the Asia-Pacific and Latin America regions, also lessened the blow from a 9% drop in sales in its key North America division.

Gross margin, meanwhile, dropped by 60 basis points to 46.1%, due to higher promotional drives and foreign exchange headwinds that were partially offset by lower freight costs.

Based on the latest quarterly results, Maryland-based Under Armour backed its outlook for its 2024 fiscal year, with President and Chief Executive Officer Stephanie Linnartz saying that its international and direct-to-consumer businesses are continuing to deliver "aside a challenging consumer retail environment in North America."

Class A shares in Under Armour edged higher in premarket U.S. trading Tuesday.