UAA - Under Armour: 2020 Guidance Is Likely To Worsen
Investment Thesis
Under Armour (UA)(UAA) has had a visceral three months, with the stock selling-off more than 40%. And despite this sell-off, I contend that investors are still pricing in too much hope into its valuation.
Investors would be better served by sidestepping this investment. Here's why:
(source)
Steadily Declining Revenues
Presented below is Under Amour's revenue growth rate from the past several years together with its 2020 guidance:
Source: press statements; ***author estimate
In February, before coronavirus outbreak concerns, Under Armour was guiding towards low single-digit revenue declines.
Today, a more realistic