Under Armour in trouble?

[BForrester]

I just happen to play golf with a major golf retail manager......He still says they can't give away UA golf shoes.

 

I was in the market for shoes last year and thought I wanted the UA shoes...I like the look of the Drive One. I tried them as well as the FJ DNA and the FJs were just so much more comfortable.

 

I do love UA's golf polo shirts, especially the Performance Polo. I really like the fit and they're reasonably priced. I'm not at all a fan of Nike or Adidas golf shirts.

[notsohard]

Footjoy shoes, Footjoy clothing.

The rest of them make golfing apparel just with the dollar in mind, and forget the quality that is needed for the sport.

UA is overpriced second grade shite, and the market says so.

.....and Junk it is.

 

http://www.marketwat...atus-2017-02-0

[manku]

Their stock didn't drop 80%. They've done three different 2 for 1 stock splits over the last 5 yrs. Not as simple as looking at their all time high stock price and their current price.

 

You are correct, sir! Unfortunately, since UA did their share split last year into two different classes and symbols, it's difficult to find a price chart that adjusts for splits...however, it would appear that even with the split, the stock is still down 60%+. I'm sure someone can tell me the all-time, split adjusted high...I seem to get around 52?

[adam667220]

Their stock didn't drop 80%. They've done three different 2 for 1 stock splits over the last 5 yrs. Not as simple as looking at their all time high stock price and their current price.

 

You are correct, sir! Unfortunately, since UA did their share split last year into two different classes and symbols, it's difficult to find a price chart that adjusts for splits...however, it would appear that even with the split, the stock is still down 60%+. I'm sure someone can tell me the all-time, split adjusted high...I seem to get around 52?

 

I'm not saying your points are wrong or invalid. Just pointing out that the splits make it look worse than it really is. No need to get defensive.

 

Just saw this today, which I hadn't previously seen noted:

 

Under Armour stock was subject to a slew of downgrades this week after a disappointing earnings report and news of the departure of finance head Chip Molloy after just one year on the job.

The bad news didn’t end there.

The sports equipment and apparel retailer UA, -0.41% also had its credit downgraded, sending its sole bond issue into speculative, or “junk” territory.

Standard & Poor’s cut its rating on the issuer to BB-plus from BBB-minus, the last level of investment grade. The outlook on the rating is negative, meaning S&P could lower it again in the medium term.

[Cubsfan]

I just get all my UA gear at Marshalls and T.J.Maxx, they lots of stuff for a fraction of the price.

[RICKYBOBBY]

Their stock didn't drop 80%. They've done three different 2 for 1 stock splits over the last 5 yrs. Not as simple as looking at their all time high stock price and their current price.

 

You are correct, sir! Unfortunately, since UA did their share split last year into two different classes and symbols, it's difficult to find a price chart that adjusts for splits...however, it would appear that even with the split, the stock is still down 60%+. I'm sure someone can tell me the all-time, split adjusted high...I seem to get around 52?

 

I'm not saying your points are wrong or invalid. Just pointing out that the splits make it look worse than it really is. No need to get defensive.

 

Just saw this today, which I hadn't previously seen noted:

 

Under Armour stock was subject to a slew of downgrades this week after a disappointing earnings report and news of the departure of finance head Chip Molloy after just one year on the job.

The bad news didn’t end there.

The sports equipment and apparel retailer UA, -0.41% also had its credit downgraded, sending its sole bond issue into speculative, or “junk” territory.

Standard & Poor’s cut its rating on the issuer to BB-plus from BBB-minus, the last level of investment grade. The outlook on the rating is negative, meaning S&P could lower it again in the medium term.

 

 

I don't mean to fight another guys battles but honestly i didn't see that as him getting defensive. ¯\_(ツ)_/¯

[bscinstnct]

I just get all my UA gear at Marshalls and T.J.Maxx, they lots of stuff for a fraction of the price.

 

 

 

(Laughing with you ; )

[micha]

Under Armour's disaster in shoe quality and design will take years to recover if they can improve it. Damaged the brand in my opinion.

[The Pearl]

UA's story is one that repeats over and over in the stock market. There is nothing new or unusual here. A high growth company catches the fancy of the institutions and traders and it becomes a momentum stock. Everybody jumps on the freight train until valuations become unsustainable REGARDLESS of how the company performs. Critical mass is reached as there are no more buyers as sales and earnings growth start to slow down. The fast money bolts and the entire process reverses on itself and the long down trend begins. These types of stocks are where the Average Joe's who do not know how markets work get slaughtered. They buy way too late in the primary trend as valuations are high and than run in and buy the dips with the thought that the stock will bounce back up to the old highs. They than average down and get stuck holding a stock that is underwater for years.

 

Never fight the primary and never average down in these types of stocks. NEVER. There is a huge difference between a company and the stock price of a company. Let me repeat that. There is a huge difference between a company and the stock price of a company. I am sure UA will survive, but the stock price is severely broken and once it hits bottom will take at least a year, maybe a couple to repair the damage. There is no guarantee that the bottom is even in place. At 21 the stock is still trading at a PE of 31. There still could be lots of damage still up ahead if growth does not materialize and earnings do not pick up. The primary trend is still down with no end in sight.

 

If you like UA and think it will be a long term winner, you will have plenty of time to buy the rebound in the future.

[acy274]

Probably doesn't help with the political stance that CEO Kevin Plank recently took...

[Lacey Underall]

Probably doesn't help with the political stance that CEO Kevin Plank recently took...

No kidding. Here's some advice to any CEO out there when asked about our current political climate: just say "NO COMMENT." Micheal Jordan knew he was selling shoes to both sides so he stayed out of it. Feel like making a statement? Fine, let's watch Stef Curry walk and your entire basketball division is toast. Last time I checked your company was created 20 years ago which means you THRIVED under two completely different administrations.

[Outlier]

Is UA in trouble? $5 billion in revenue, 45% gross margins and 13% operating margins. Hmmm....Pretty embarrassing quarter for sure. Let me ask you, did you ever double bogey a par 3? And if so, did you play a bad hole or was your game in trouble?

 

Phred

 

 

Trouble with this analogy is They are chasing a leader that has a 10 shot lead and second place is 7 shots ahead of them as well. So yes every dropped shot matters.

 

again they are not going out go business but there is nothing to suggest that the next quarter will be any better. NIKE has an advantage because of their Direct to Consumer business. UA still relies on the Footlockers, Footactions etc too much.

 

it is time to buy that stock.

UA is the king in the tech / apparel business

Nike is done

 

 

Curious as to what tech UA has offered to show they are the King?

 

Innovation in performance sensor devices with apparel.

the brand is growing. Yes, they can kill few products and watch their marketing $$$

no scandal on workers right a la Nike.

UA is a buy and hold

 

those sensors are not making them money if anything they are costing them money. You don't think NIKE has those to put on their athletes for testing? You don't think NIKE didn't have those probably 10 years ago? Come on. UA is not coming up with anything thats a tech breakthrough. NIKE and adidas have started making shoes with a sewing machine (Flyknit and PrimeKnit). Which did it first is a matter of discussion, but thats innovation. The amount of waste they save is amazing with these machines. Innovation is not always about tech. NIKE put a sensor in your shoe that connected to your iPod in real time. THAT was innovation and they did that like 10 years ago.

 

The scandal on workers rights I won't get into because thats been discussed so much and nobody changes their minds.

 

The fact is that NIKE and adidas have more wiggle room. UA's margin of error is getting smaller and smaller and if i were a UA fan/investor what Kevin Plank said yesterday would scare me...he said they need to be more of a fashion brand. IMO thats a horrible mistake. Dance with who brought you.

 

That's not all he said recently. Which by the way (maybe I am cynical) I think may have been a calculated move. What the hell else does he have to lose at this point? Maybe he can become the official sports outfitter of making things "great" again. I know whose stuff my kid won't buy.

[Outlier]

UA's story is one that repeats over and over in the stock market. There is nothing new or unusual here. A high growth company catches the fancy of the institutions and traders and it becomes a momentum stock. Everybody jumps on the freight train until valuations become unsustainable REGARDLESS of how the company performs. Critical mass is reached as there are no more buyers as sales and earnings growth start to slow down. The fast money bolts and the entire process reverses on itself and the long down trend begins. These types of stocks are where the Average Joe's who do not know how markets work get slaughtered. They buy way too late in the primary trend as valuations are high and than run in and buy the dips with the thought that the stock will bounce back up to the old highs. They than average down and get stuck holding a stock that is underwater for years.

 

Never fight the primary and never average down in these types of stocks. NEVER. There is a huge difference between a company and the stock price of a company. Let me repeat that. There is a huge difference between a company and the stock price of a company. I am sure UA will survive, but the stock price is severely broken and once it hits bottom will take at least a year, maybe a couple to repair the damage. There is no guarantee that the bottom is even in place. At 21 the stock is still trading at a PE of 31. There still could be lots of damage still up ahead if growth does not materialize and earnings do not pick up. The primary trend is still down with no end in sight.

 

If you like UA and think it will be a long term winner, you will have plenty of time to buy the rebound in the future.

 

Remember Reebok vs. Nike how long did it take for Reebok to fully reposition itself?

[RICKYBOBBY]

UA's story is one that repeats over and over in the stock market. There is nothing new or unusual here. A high growth company catches the fancy of the institutions and traders and it becomes a momentum stock. Everybody jumps on the freight train until valuations become unsustainable REGARDLESS of how the company performs. Critical mass is reached as there are no more buyers as sales and earnings growth start to slow down. The fast money bolts and the entire process reverses on itself and the long down trend begins. These types of stocks are where the Average Joe's who do not know how markets work get slaughtered. They buy way too late in the primary trend as valuations are high and than run in and buy the dips with the thought that the stock will bounce back up to the old highs. They than average down and get stuck holding a stock that is underwater for years.

 

Never fight the primary and never average down in these types of stocks. NEVER. There is a huge difference between a company and the stock price of a company. Let me repeat that. There is a huge difference between a company and the stock price of a company. I am sure UA will survive, but the stock price is severely broken and once it hits bottom will take at least a year, maybe a couple to repair the damage. There is no guarantee that the bottom is even in place. At 21 the stock is still trading at a PE of 31. There still could be lots of damage still up ahead if growth does not materialize and earnings do not pick up. The primary trend is still down with no end in sight.

 

If you like UA and think it will be a long term winner, you will have plenty of time to buy the rebound in the future.

 

Remember Reebok vs. Nike how long did it take for Reebok to fully reposition itself?

 

Still waiting

[Outlier]

UA's story is one that repeats over and over in the stock market. There is nothing new or unusual here. A high growth company catches the fancy of the institutions and traders and it becomes a momentum stock. Everybody jumps on the freight train until valuations become unsustainable REGARDLESS of how the company performs. Critical mass is reached as there are no more buyers as sales and earnings growth start to slow down. The fast money bolts and the entire process reverses on itself and the long down trend begins. These types of stocks are where the Average Joe's who do not know how markets work get slaughtered. They buy way too late in the primary trend as valuations are high and than run in and buy the dips with the thought that the stock will bounce back up to the old highs. They than average down and get stuck holding a stock that is underwater for years.

 

Never fight the primary and never average down in these types of stocks. NEVER. There is a huge difference between a company and the stock price of a company. Let me repeat that. There is a huge difference between a company and the stock price of a company. I am sure UA will survive, but the stock price is severely broken and once it hits bottom will take at least a year, maybe a couple to repair the damage. There is no guarantee that the bottom is even in place. At 21 the stock is still trading at a PE of 31. There still could be lots of damage still up ahead if growth does not materialize and earnings do not pick up. The primary trend is still down with no end in sight.

 

If you like UA and think it will be a long term winner, you will have plenty of time to buy the rebound in the future.

 

Remember Reebok vs. Nike how long did it take for Reebok to fully reposition itself?

 

Still waiting

 

Exactly!

[JackpotJohnny]

Adidas owns reebok, there is no repositioning. It will always be a second tier athletic company

 

[pattg]

UA craps are cheap here in the U.K. compared to competition. Quality as far as I have noticed is very good.

 

One thing I have noticed - no doubt others around me also - is their gear is non breathable and their compression shirts and pullovers do smell much more than other products I have.

[BlackDiamondPar5]

UA's story is one that repeats over and over in the stock market. There is nothing new or unusual here. A high growth company catches the fancy of the institutions and traders and it becomes a momentum stock. Everybody jumps on the freight train until valuations become unsustainable REGARDLESS of how the company performs. Critical mass is reached as there are no more buyers as sales and earnings growth start to slow down. The fast money bolts and the entire process reverses on itself and the long down trend begins. These types of stocks are where the Average Joe's who do not know how markets work get slaughtered. They buy way too late in the primary trend as valuations are high and than run in and buy the dips with the thought that the stock will bounce back up to the old highs. They than average down and get stuck holding a stock that is underwater for years.

 

Never fight the primary and never average down in these types of stocks. NEVER. There is a huge difference between a company and the stock price of a company. Let me repeat that. There is a huge difference between a company and the stock price of a company. I am sure UA will survive, but the stock price is severely broken and once it hits bottom will take at least a year, maybe a couple to repair the damage. There is no guarantee that the bottom is even in place. At 21 the stock is still trading at a PE of 31. There still could be lots of damage still up ahead if growth does not materialize and earnings do not pick up. The primary trend is still down with no end in sight.

 

If you like UA and think it will be a long term winner, you will have plenty of time to buy the rebound in the future.

 

Very well stated. Could be said for much of the current valuation of the current US stock market.