Source: underarmour.com
Under Armour (UA) (UAA) has been a typical example of a company that ends up being a victim of its own success. After the fad of 2014-2016, Under Armour’s fundamentals experienced a disastrous deterioration. The stock posted a crash for two years and then moved sideways despite the stock market’s bull run. As it’s typical of these fad-driven stories, Under Armour had to face margin and cash-flow deterioration, together with exploding inventories. In these situations, the ability to stabilize inventories and prices/margins become two key ingredients to hope for