UAA - Under Armour: 'New' Plan Not Really New But The Stock Is Fairly Valued
2024-05-19 00:09:17 ET
Summary
- Under Armour is one of the biggest global sports apparel brands.
- The company has struggled with strategy. Under Armour changed CEO five times in five years. Now, the founder is returning to the CEO chair.
- Under Armour's situation is bad; the company's wholesale clients are not planning to buy as much in 2024, leading to a guidance of a low double-digit revenue decrease in FY25.
- Under Armour's valuation is not aggressive, requiring a neutral post-restructuring scenario, even assuming the company can't recover after a bad FY25. In this sense, it is fairly valued.
- However, I have a more bearish view of the new plan, given that the founder was the Chairman and the most important shareholder in the previous strategic failures.
Under Armour ( UA ) ( UAA ) is a global sports and performance apparel brand.
The company's successful growth story began in the late 1990s and continued until about 2017. It focused on athletic performance apparel and shoes. A series of bad decisions since have curtailed margins and growth and led to impairments and managerial change....
Under Armour: 'New' Plan Not Really New But The Stock Is Fairly Valued