More bad news for UA

Creed Monster · May 20, 2024

Link: https://finance.yahoo.com/news/unde...in-plank-has-to-take-the-blame-123052660.html

All in all, just not getting it done as a leader, from execution to innovation to company culture.

And this week it once again blew up in his face in the form of a shocking earnings release and outlook.

Fourth fiscal quarter sales tanked 5% from the prior year. Sales in North America plunged 10%. International sales were down 7%. Wholesale sales (aka sales to department stores and other partners) fell 7%. E-commerce dropped 8%. Apparel sales down 1%. Footwear sales down 11%. Accessories sales down 7%.

By comparison, Lululemon's (LULU) sales in the most recent quarter rose 16%. Sales in its Americas division advanced 9%.

Under Armour's share price has plunged 87% since its 2015 record. This is a $6.71 stock now! The company's market cap stands at a paltry $2.90 billion, versus $42.3 billion for Lululemon and $138 billion for Nike (NKE).

"Several of the initial inputs to the turnaround strategy add some comfort (new $500 million buyback, 25% SKU reduction, new cost cut initiatives). However, many elements of the plan seem dependent on UAA achieving a degree of success in product innovation we haven’t seen in years," wrote Evercore ISI analyst Michael Binetti in a client note.

Oof -- it makes you wonder why Auburn wasn't just leaving UA, but running away as fast as it could.

Mule96 · May 20, 2024