UAA - A Complete Reset For Under Armour

2024-05-16 12:22:06 ET

Summary

• Under Armour, Inc., a sportswear company, has experienced a downturn in sales, particularly in North America, but international sales have shown growth.
• The company has reduced inventory and improved margins, and its balance sheet remains solid.
• Under Armour has announced a restructuring plan to address the decline in North American sales, which may pressure the top and bottom line in the near-term. However, if management executes the plan successfully, the stock could see a gradual improvement in performance.

Make no mistake, it has been a tough environment for retailers. You have soaring housing costs. Food is expensive. Gas is expensive. Credit card and other borrowing rates are so high. Student loans are being repaid once again, also biting into the consumer's spending power. While consumer sentiment still remains higher than we would expect with all of this going on, there has been real pressure on many restaurant and retail stocks. Sure, there is a lot of variability within the space, with some notable winners, but many are under pressure....

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