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Under Armour Partners with Fanatics and MLB

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Price movement

Under Armour (UA) has a market cap of $12.4 billion. It rose 1.3% to close at $30.43 per share on December 5, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -2.4%, 0.43%, and -24.5%, respectively, on the same day.

UA is trading 2.4% below its 20-day moving average, 11.5% below its 50-day moving average, and 21.9% below its 200-day moving average.

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Related ETF and peers

The Schwab US Broad Market ETF (SCHB) invests 0.05% of its holdings in Under Armour. The YTD price movement of SCHB was 10.3% on December 5.

The market caps of Under Armour’s competitors are as follows:

  • Nike (NKE) — $86.7 billion
  • Skechers USA (SKX) — $4.2 billion
  • Columbia Sportswear (COLM) — $4.2 billion

Latest news on Under Armour

In a press release on December 5, 2016, Under Armour reported, “Today, Under Armour (UA, UA.C), Fanatics and Major League Baseball ([or] MLB) announce a 10-year partnership that names the global performance brand as the official uniform provider to MLB, marking Under Armour’s first-ever professional league uniform deal.”

The release added, “The collaborative partnership will provide cutting-edge on-field apparel for players, as well as the most responsive and significant merchandise assortment ever available for fans. 

“Beginning in the 2020 MLB season, Under Armour will be the exclusive MLB provider of all on-field uniform components including jerseys featuring prominent Under Armour branding, baselayer, game-day outwear, and year-round training apparel for all 30 MLB Clubs.”

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Performance of Under Armour in 3Q16

Under Armour (UA) reported 3Q16 net revenues of $1.5 billion, a rise of 22.2% compared to $1.2 billion in 3Q15. The company’s gross profit margin and operating margin fell 130 basis points and 70 basis points, respectively, in 3Q16 compared to 3Q15.

The gross profit margin fell due to the impact of an unfavorable foreign exchange, an increase in promotions, and the timing of liquidation, partially offset by the margin improvement in product costs.

Its net income, EPS (earnings per share) of Class A and Class B, and EPS of Class C common stock rose to $128.2 million, $0.29, and $0.29, respectively, in 3Q16. Those figures compare to $100.5 million, $0.23, and $0.23, respectively, in 3Q15.

Under Armour’s cash and cash equivalents and inventories rose 12.9% and 11.9%, respectively, in 3Q16 compared to 3Q15.

Projections

Under Armour (UA) made the following projections for fiscal 2016:

  • net revenues: ~$4.9 billion
  • operating income: $440.0 million–$445.0 million
  • interest expense: ~$30.0 million

Next, we’ll take a look at Tyson Foods (TSN).

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