Under Armour Is Lagging Behind Peers Like Nike & Lululemon! Analyst Explains Why
Portfolio Pulse from Nabaparna Bhattacharya
Under Armour (NYSE: UAA) reported a 4.9% decline in Q4 revenue and provided gloomy guidance, leading to a downgrade by JP Morgan. Analysts highlight Under Armour's lagging performance in product innovation, profitability, and DTC infrastructure compared to peers like Nike (NYSE: NKE) and Lululemon (NASDAQ: LULU). The company is undergoing a 'reset' in North America, with significant revenue and operating income declines expected in FY25.
May 17, 2024 | 4:41 pm
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Under Armour reported a 4.9% decline in Q4 revenue and provided a gloomy outlook, leading to a downgrade by JP Morgan. The company is expected to undergo significant restructuring, with anticipated revenue and operating income declines in FY25.
The company's reported revenue decline and negative guidance have led to a downgrade by JP Morgan. The anticipated restructuring and significant declines in revenue and operating income indicate a challenging period ahead.
CONFIDENCE 100
IMPORTANCE 100
RELEVANCE 100
POSITIVE IMPACT
Lululemon has gained 110 bps of global sportswear market share from 2019-23, outperforming Under Armour.
Lululemon's market share gains indicate strong performance relative to Under Armour. This positive trend is likely to support Lululemon's stock in the short term.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 50
POSITIVE IMPACT
Nike has gained market share relative to Under Armour, which has lost 20 bps of global sportswear market share from 2019-23. Nike's market share gains are +120 bps.
Nike's continued market share gains highlight its strong position relative to Under Armour, which is struggling. This positive performance is likely to support Nike's stock in the short term.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 50