Investment Thesis
Under Armour (UAA, UA) is an innovative company with a premium brand that has faced margin issues as a result of growing pains and a competitive athleisure marketplace. The company has begun to reverse these issues and is showing signs of a turnaround. Given this, I think Under Armour’s stock has room to appreciate; however, don’t be surprised if there are selloffs on the way due to lack of execution.
Introduction
When Under Armour reported 4th-quarter 2018 results, the stock was rewarded by the market. Despite revenue only growing 1.5%