UAA - Under Armour's Story Has Not Yet Changed

• Since our last publication, the stock price has increased by 7%, fueled by the solid 2Q21 results.
• In our view, despite Under Armour's recent success, it was the industry's demand pick-up that fueled the surge in revenue growth, which, in turn, drove the stock price.
• The story has not yet changed. Margins have been improving, and free cash flows continue to expand. But we have not yet seen a solid long-term revenue growth boost.
• Looking forward, we see that possible short-lived headwinds, such as supply constraints, could erase the positive sentiment on the stock.

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