UAA - Under Armour Columbia slide as Stifel expects more promotions in 2022

Under Armour (UAA -2.2%) and Columbia (COLM -1.8%) both trade lower after receiving downgrades to Hold from Buy at Stifel. On Under Armour, analyst Jim Duffy writes that he has "lower confidence in potential for revenue and margin upside across FY23." Duffy believes that upside is limited due to higher consensus estimates, difficult comps in 2022, and potentially higher inventory levels leading to a more promotional environment. Stifel lowers its 12 month price target on UAA to $24 from $30. Duffy is concerned that unseasonably warm weather and late snowfalls could affect Columbia's sales. "In combination with supply chain delays and late arrival of goods across the industry, we see risk of an inventory overhang, promotional pressure to margin, and more subdued wholesale orders for 2H22," he comments. Stifel lowers its price target on COLM to $111 from $126 versus the analyst average of $124.FY23.

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Under Armour, Columbia slide as Stifel expects more promotions in 2022