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UAA's restructuring initiative bodes well for sustained growth and stronger financial performance in the future despite the near-term challenges.
Shares of Under Armour Inc. dropped in the extended session Monday after the retailer said it expects a bigger operating loss in fiscal 2025 thanks to increased restructuring costs.
BALTIMORE , Sept. 9, 2024 /PRNewswire/ -- Under Armour, Inc. (NYSE: UAA, UA) today announced an update to its Fiscal 2025 restructuring plan, including additional initiatives to optimize the company's strategic supply chain capabilities and overall business performance.
Under Armour, Inc. presently has a relatively high Valuation, negative growth metrics, and, in my opinion, the risk that comes attached to an investment is relatively high. I am convinced that the risk-reward profile of Under Armour is significantly less attractive than Nike's. Under Armour presently receives my sell rating. I suggest reallocating the capital to competitor Nike, following the investment approach of The Dividend Income Accelerator Portfolio, in which Nike is one of the largest positions.
Under Armour CEO Kevin Plank said that the company hasn't "done a good enough job yet telling Steph his story through the Curry brand." He speaks alongside Steph Curry at Bloomberg Power Players New York.
Under Armour (UAA) shares have started gaining and might continue moving higher in the near term, as indicated by solid earnings estimate revisions.
Under Armour's (UAA) Q1 results reflect a year-over-year decline in revenues. However, its gross margin expands 110 bps due to reduced discounting in the direct-to-consumer segment and lower product costs.
Under Armour, Inc. (NYSE:UAA ) Q1 2025 Earnings Call Transcript August 8, 2024 8:30 AM ET Company Participants Lance Allega - SVP, IR, Treasury and Corporate Development Kevin Plank - President and CEO Dave Bergman - CFO Conference Call Participants Jay Sole - UBS Bob Drbul - Guggenheim Simeon Siegel - BMO Capital Markets Geoff Lowery - Redburn Jim Duffy - Stifel Paul Lejuez - Citi Laurent Vasilescu - BNP Paribas Sam Poser - Williams Trading Operator Good morning, and welcome to the Under Armour First Quarter 2025 Earnings Conference Call. All participants will be in listen-only mode.
Under Armour (UAA) shares popped intraday Thursday following the company's first-quarter fiscal 2025 results, its first since announcing a substantial restructuring plan.
Under Armour's returning CEO is repositioning the brand for long-term success, sacrificing low-margin sales volume. The company expects big losses this year, but its gross margin is trending in the right direction.