These sportswear stocks are having a good day today!
Sportswear players Under Armour (UAA) and Columbia Sportswear (COLM) are rallying on the stock market today. While Columbia Sportswear is riding high on a 1Q18 earnings beat and guidance revision, Under Armour’s surge is fueled by positive comments from investment firm Jefferies.
Here’s why Under Armour is on the move
Under Armour stock is rallying after Jefferies analyst Randal Konik commented about improving trends in the company’s business based on credit card data analysis.
Konik said he expects an improvement in the athletic apparel seller’s inventory-to-sales ratio as well as gross margin trends in the near term.
Under Armour’s sales and margins are “likely to begin a path of sustainable improvement against a backdrop of negative sell/buyside sentiment,” said Konik in an investor note.
Under Armour is due to report its 1Q18 results on May 1. The company is likely to report a loss of 5 cents per share on total sales of $1.1 billion.
About Columbia Sportswear’s rally
Columbia Sportswear reported solid results yesterday. The company not only beat top- and bottom-line expectations but also shared a robust outlook.
Its earnings per share stood at 77 cents, 19 cents ahead of consensus. Total sales improved 10% YoY to $599 million (on a non-GAAP, or generally accepted accounting principles, basis), $17 million more than expectations.
Management revised its fiscal 2018 sales guidance to 6.5%– 8.5% growth, compared to the 4%–6% outlook provided earlier. Earnings per share expectations were revised to $3.27–$3.37 versus the prior outlook of $3.17–$3.27.