UAA - Under Armour downgraded at Cowen amid macroeconomic inventory overhangs

Ballooning inventory and production costs caused Cowen analyst John Kernan to take a more cautious view of Under Armour (NYSE:UAA) shares on Tuesday. Despite a drop of nearly 60% for the stock so far in 2022, Kernan told clients the risk/reward dynamics for the name remain challenged. He cited rising costs that are impacting the overall apparel industry, the increasing risk of recession that could curtail demand, and its loss of market share to competitors as key drivers of his more bearish tenor.  “We are downgrading UAA to Market Perform as the sector's inventory position is likely to deteriorate further based on our supply chain checks and [average unit cost] inflation is accelerating into 2023 and has worsened since Q1,” Kernan explained. “UAA's brand momentum has waned relative to peers and the expectation for a re-acceleration in growth into an uncertain macro environment could be challenged.” He added that while

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Under Armour downgraded at Cowen amid macroeconomic, inventory overhangs