Under Armour Inc
Outlook for Under Armour (UAA) Stock Following Profitable Quarter
Analyzing the Prospects of Nike’s Geographic Segments
Most of Nike’s (NKE) incremental revenue was recorded in its North America market, Nike’s largest geographical segment.
Where NIKE And Under Armour Win In The Market Share Stakes
Under Armour’s share of the apparel market rose from 14% to 16%, year-over-year, in the first nine months of 2014.
Lululemon: The Outliers Affecting LULU’s Stock Price Movement
On June 11, Lululemon Athletica (LULU) filed a shelf prospectus with the US Securities and Exchange Commission (or SEC).
Under Armour: S&P 500’s Top Gainer on April 3
Under Armour was the S&P 500’s top gainer on April 3. After declining for three consecutive trading weeks, Under Armour regained stability last week.
Who Were the Outliers in the Consumer Space on May 4?
On May 4, 2016, the S&P Consumer Staples slightly outperformed the S&P 500 and the S&P Consumer Discretionary as a whole.
Lululemon’s Digital Update: e-Commerce Sales Climb in Fiscal 1Q17
In fiscal 1Q17. Lululemon’s (LULU) e-commerce sales rose by 16.7% to $97.6 million in the quarter, representing 19.7% of its revenue.
Wells Fargo Upgrades Under Armour to ‘Outperform’
Under Armour’s cash and cash equivalents fell 6.7%, and its inventories rose 38.8% between 4Q15–2Q16.
Lululemon’s 2Q16 Revenue Rises 15.9% Despite Forex Headwinds
Lululemon Athletica (LULU) reported sales revenue of $453 million in 2Q16, up 15.9% year-over-year. Excluding the impact of adverse foreign currency movements, sales would have increased by 21%.
Recent Analyst Actions: Under Armour and Gap
One day after Kate Spade’s upgrade, Under Armour and Gap also came under scrutiny. On September 13, Nomura initiated coverage of UA with a “neutral” rating.
Nike’s Top Line and Bottom Line Rose in Fiscal 3Q16
Nike’s cash and cash equivalents and inventories rose by 0.96% and 8.1%, respectively, in fiscal 3Q16 compared to fiscal 3Q15.
How Markets Are Pricing Under Armour Stock
Markets expect the strong growth trend to continue, and value Under Armour stock higher than the overall market and comparable firms.
John Christian Walbrecht Appointed as President of Columbia Brand
Columbia Sportswear (COLM) has a market cap of $4.1 billion. COLM fell by 0.31% to close at $58.34 per share as of February 22, 2016.
Who Were the Outliers in the Consumer Space on June 16?
On June 16, 2016, the S&P 500 Consumer Staples Index slightly outperformed the S&P 500 and the S&P 500 Consumer Discretionary Index. These indexes had respective returns of 0.61%, 0.31%, and 0.37%.
Analyzing Ralph Lauren’s Stock Performance and Dividend Payout
Ralph Lauren’s stock price hasn’t shown any signs of improvement this year. Its stock price has fallen more than 23% YTD (year-to-date) as of May 13, 2016.
Can Lululemon Boost Its Products through Management Changes?
In October and November, Lululemon Athletica announced several top-level management changes.
How Does Shake Shack Compare to Its Peers?
Shake Shack (SHAK) has an enterprise-value-to-revenue multiple of 13.9x, compared to the peer average of 3.5x.
Is Wall Street Losing Confidence in Nike?
Overall, analysts do not have a negative sentiment toward Nike’s stock, as the company has not received any “sell” recommendations yet. On September 20, 2016, the company had 21 “buy” and 12 “hold” recommendations from Wall Street analysts.
How Digital Campaigns Are Powering Sales for Sportswear Firms
Nike (NKE) has a digital community of almost 70 million women around the world. What’s more, 54% of the runners logging a run in the Nike+ Running Club are women.
Can Under Armour’s Growth Model Cope With These Threats?
Key threats to the company include higher labor costs and greater regulation. After the Bangladesh factory tragedy, stricter regulations can be expected.
Under Armour’s Upbeat Prospects for Direct-to-Consumer Sales
Retail and e-commerce sales—DTC or direct-to-consumer sales—are growing at a faster clip than the average growth rate for the company.
Susquehanna Rated Nike as ‘Positive’
In fiscal 1Q17, Nike (NKE) repurchased 19 million shares for ~$1.1 billion.
Lululemon Shows Sports Apparel Is Outpacing Retail Sector Growth
Sports apparel as a category has been outpacing growth in 12 other retail segments for several months now. This should benefit sales for Lululemon (LULU).
Under Armour’s Upbeat Outlook and Stock Price Performance
Under Armour’s (UA) stock price hit several record highs this year. The stock has provided total returns of 54.9% over the past year.
How Much Can Truven’s Data Actually Benefit IBM’s Watson?
IBM intends to strengthen its presence in cognitive computing and machine learning space through Watson, which requires a vast pool of data.
Why Under Armour Expects to Take on More Debt to Fund Growth
As we discussed in the previous articles of this series, Under Armour (UA) is expecting to significantly grow both its top and bottom lines over the next few years.
Can Project Jacquard Revive Premium Denim?
Google and Levi Strauss unveiled a new collaboration. It embeds touch-enabled interactive technology in fabrics. It may revive the denim industry.
Nike Market Share Gets the High Score in Activewear
UA’s market share came in at 6%, and ADDYY’s came in at 3%. Hanes (HBI) took 3% of the market in 1Q15 .Nike (NKE) was the market leader for activewear overall.
Why Nike Is Able To Sell More Products At Higher Prices
Revenue gains for Nike (NKE) in 1H15 were broad-based. Sales rose for almost all key product categories, with the notable exception of the golf category.
NBA Sponsorship Bid: An Adidas Timeout and a NKE and UA Jump Ball
The success of Nike’s and UA’s signature offerings may have spurred Adidas to change its strategy, such as signing more NBA stars and developing product.
Nike’s All-Time High on Earnings Beat: What’s the Score for 3Q15?
Nike delivered an earnings beat in 3Q15—the 11th straight quarter that the company had come ahead of Wall Street earnings expectations.
The 6 Positive Things about April’s Retail Sales Report
The advance retail sales report for April 2015 was on the whole, mixed. The mixed readings in the retail sales report brought about indifferent reactions from markets.
Under Armour’s Athletic Endorsements Paid Handsome Dividends
In terms of endorsements, the last weekend in January was eventful for Under Armour. Tom Brady won his fourth Super Bowl. He wore Under Armour cleats.
Market Moves Paint a Contradictory Picture of Nike’s Performance
The initial bullish reaction to Nike’s earnings stemmed from the upbeat futures orders reports, the higher-than-expected earnings growth, and upbeat outlook.
Who’s Taking a Bite Out of Nike’s Market Share?
Nike is the world’s largest athletic footwear and apparel company. It dominates the sportswear market in Europe, China, and North America.
Nike’s Profitability Improves But Still Trails the Competition
Despite Nike’s expanding margin and improved operating profitability, its margin and profitability still trail peers Under Armour and Lululemon Athletica.
Why Did Nike Rise on August 11?
Nike has a market cap of $96.5 billion. It rose by 0.62% and closed at $57.21 per share on August 18. Nike reported fiscal 4Q16 revenues of $8.2 billion.
Under Armour’s Fitness App Platform Is the World’s Largest
Late last year and in early 2015, Under Armour acquired Endomondo and MyFitnessPal. Its fitness app user platform became the largest in the world.
Why Nike Is Able to Turn a Profit in E-Commerce
The Nike+ Training Club clocked ~17 million downloads by 1Q15. The app is now available in 18 languages, creating the framework for a global community.
US Dollar at Decade Highs Casts a Shadow over Nike’s Performance
Since Nike reports financial results in US dollars, the performance of the dollar versus foreign currencies affects the company’s performance.
Nike Still Dominates Athletic Footwear in 1Q15
US dollar sales of athletic footwear rose 8% in the first quarter of 2015. Nike was the most dominant brand by far with a market share of 62%.
Nike’s Target Markets: Everything You Need to Know
Nike (NKE) faces some challenges in its target markets. In the US, economic growth rates have tapered down, and the trade war could affect its China market.
How Innovation Is Driving Sales at Nike
While Nike derives most of its revenues from footwear products, it also sparks innovation in apparel technologies, such as Aeroloft, Dri-FIT, and Nike Pro.
Wall Street Expects 16.5% Earnings Growth from UA in 4Q15
Under Armour (UA) has an enviable earnings record. It’s beaten the market consensus on quarterly earnings and sales for over five years in a row.
How Did Nike Perform in 1Q17?
Nike (NKE) has a market cap of $92.9 billion. It rose 1.7% to close at $55.34 per share on September 27, 2016.
Under Armour Expects Increased Revenue in 2015
Under Armour expects to earn revenue of ~$3.76 billion in 2015. This is an increase of 22% over 2014. Growth is expected in its North America and International segments.
Nike’s Outlook: Category Offense All the Way
Consensus Wall Street analyst estimates project Nike’s adjusted diluted EPS to be $3.58 in fiscal 2015, an increase of 19.7% over the previous year.
Why Skechers Is Expanding Distribution in Key Overseas Markets
Skechers (SKX) products are sold in about 160 countries. The company’s international wholesale segment was its fastest-growing segment from 2011 to 2015.
Nike Announces the Launch of New Products
Nike (NKE) fell 1.7% to close at $50.46 per share during the fifth week of November 2016.
Lululemon Stock Rose 10.7% on Upbeat Fiscal 4Q16: What’s Next?
Lululemon (LULU) stock rose 10.7% to $67.80 on March 30, 2016, the day the company declared its fourth quarter results. The stock has risen more than 29% year-to-date.
Under Armour: The ARMOURY and Its Wholesale Strategic Importance
The ARMOURY stores will cater to the premium segment of the market. They’ll also feature UA product exclusives and occasional visits from star athletes.
The Growth Factors Spiking NIKE Revenues And Earnings
In this series, we’ll analyze the results of the past quarter and the reasons why NIKE continues to outperform.
Understanding Nike’s Performance in Fiscal 2Q17
Nike rose 1.9% to close at $51.79 per share on December 20, 2016. The stock’s weekly, monthly, and YTD price movements were -0.98%, 1.7%, and -16.2%.
Nike in 2015: An Earnings Smash, a Widening Moat, and Record Highs
Nike released financial results for fiscal 2015 and 4Q15 after the market close on June 25. Both revenue and earnings were way ahead of market expectations.
The Buzz around Under Armour (UA) Stock
Under Armour has become the number two player in the US activewear market in 2014, overtaking Adidas. It also benefited from the announcement of its connected fitness purchases earlier this year.
Nike’s Performance Is Compelling, Beating Wall Street Estimates
Nike’s performance over the past few years has been compelling. The company has beaten consensus Wall Street revenue estimates and earnings estimates.
Under Armour’s Performance Relative to the Sportswear Industry
Under Armour (UA), which overtook Adidas (ADDYY) last year as the number two US sportswear company, cemented its position in 1Q15.
Under Armour’s Footwear Business versus Skechers and New Balance
Primarily an apparel player, Under Armour (UA) has stepped up its pace in entering new footwear categories.
IBM Boosted Watson Capabilities through Strategic Acquisitions
IBM (IBM) is betting heavily on Watson, its cognitive computing platform, to steer the company towards much-needed growth.
Understanding NIKE’s Pricing Power And Premium Products Tilt
Innovation and strong consumer demand enable NIKE to add more premium products to its portfolio. But its price-hiking strategies may not work everywhere.
Market Share Gain Spurs NIKE’s North American Footwear Revenues
In the US, in 2014 year-to-date, NIKE, Converse, and the Jordan brands combined accounted for over 60% of market share in athletic footwear.
Key Drivers Impacting Under Armour’s Future Financial Performance
The impact of adverse forex movements on UA’s financial performance may be mitigated somewhat by the stronger retail environment in Europe.
Lone Pine Capital Sold Its Stake in The Gap
In February 2015, The Gap declared its 4Q14 results and reported net sales of $4.71 billion, compared with $4.58 billion for 4Q13, an increase of 3%.
North America: The Critical Market For Under Armour
In 2013, the company had 117 factory-house stores and 6 brand stores in North America. Store rollout is up and is expected to be stronger going forward.
Can Nike Regain Footing with Its Adaptive Lacing Footwear?
In early March, Nike showcased its new self-lacing footwear. Also known as “HyperAdapt 1.0,” the shoes tighten up when the foot is placed inside them.
Why Nike Could Win the 1Q16 Heat in North America
Nike may see strong traction in North America in 1Q16. Currency factors that tend to temper its top-line growth elsewhere have less impact on the segment.
How Did Columbia Sportswear Perform in 4Q15 and 2015?
Columbia Sportswear (COLM) rose by 13.7% to close at $55.54 per share at the end of the second week of February 2016.
Why Lululemon’s Profit Margins Are Trumping The Company’s Peers’
LULU’s gross profit margin slipped from 55.7% in fiscal 2013 to 52.8% in fiscal 2014. The company’s operating profit margin slipped from 27.5% to 24.6%.
Under Armour: The Nature Of Its Business, Product Portfolio
UA’s product, marketing, and sales teams each play an active role in the design process. This collaboration helps control brand and product consistency.
Under Armour’s 4Q15 Revenue Performance Boosted by Curry Two Slam Dunk
Under Armour’s sales grew by 30.8% in 4Q15 to ~$1.2 billion. Its 2015 sales rose by 28.5% to almost $4 billion, beating its own guidance of $3.9 billion.
Europe and China Hike Under Armour’s International Performance
For fiscal 2015, Under Armour posted international sales of $454 million—a 69% rise over 2014. In 4Q15, the company’s international sales rose by 69.8% YoY.
Under Armour Partners with IBM and SAP to Widen Connected Fitness Potential
Under Armour’s revenues from its Connected Fitness initiative came in at $53 million in 2015, which was up from $19 million in 2014.
Why Is Under Armour’s 4Q15 EPS Soaring over Low Profitability?
In 4Q15, Under Armour’s adjusted EPS came in at $0.48, beating the consensus Wall Street analyst estimate of $0.46 by 4.4%.
What are Nike’s Earnings Prospects in Fiscal 3Q16?
Nike’s EPS (earnings per share) have grown at a CAGR (compound annual growth rate) of 13.9% over the last five fiscal years.
How Do Nike’s North American Prospects Look in 3Q16?
North America is Nike’s (NKE) largest segment in terms of both revenue and operating profit.
Why Is Nike Focusing on the Direct-To-Consumer Channel?
Nike’s (NKE) DTC (direct-to-consumer) (XLY) (FXD) channel includes sales made online on Nike.com and through its own retail stores.
Nike Moves a Step Ahead with Innovation-Driven Growth
Innovation has been the cornerstone of Nike’s growth across the globe. It’s why the company has been able to sell more at higher prices.
Nike’s E-Commerce Business Could See More Acceleration Ahead
Nike saw $1.2 billion in e-commerce sales in fiscal 2015. It grew its e-commerce sales by 56% in fiscal 3Q16, reporting higher traffic and conversion rates.
Why Lululemon Athletica Expects Stronger Sales in Fiscal 4Q16
Growth company Lululemon Athletica (LULU) has revised its fourth quarter (fiscal 4Q16) and full-year (fiscal 2016) revenue guidance upwards.
E-Commerce: A High-Growth Business for Lululemon Athletica
E-commerce was one of the reasons Lululemon Athletica (LULU) had an upbeat performance in fiscal 2016. It posted e-commerce sales of almost $402 million, a 25% increase year-over-year.
Could Lululemon Have Above-Category Growth in Fiscal 2017?
In fiscal 2017, Lululemon Athletica (LULU) expects to grow revenue 10.9%– 13.3%, or $2.29 billion–$2.34 billion. Same-store sales growth is expected in the mid-single-digit range.
Five-Year Plan: Lululemon’s Long-Term Vision and Goals
Over the next five years, Lululemon Athletica (LULU) is aiming to double its revenue to $4 billion with an expected mid-single-digit growth rate in store comps.
What Is Wall Street Projecting for Under Armour’s 1Q16 Revenue?
According to the Wall Street analyst consensus, Under Armour is expected to post revenues of $1.04 billion in the quarter, an increase of 28.8% over 1Q15.
What Drove Under Armour’s 30% Revenue Jump in 1Q16?
Under Armour (UA) grew revenue by 30% to $1.05 billion in 1Q16. This was the company’s 24th straight quarter of more than 20% growth in its top line.
Why Under Armour’s Footwear Sales Growth Is Accelerating
Under Armour’s (UA) footwear business registered an impressive 64.2% growth (VUG) rate in 1Q16 versus 1Q15. Footwear sales came in at $264 million in the quarter.
What Led to Under Armour’s Massive International Growth in 1Q16?
Under Armour’s (UA) international sales grew 55.6% to almost $150 million in 1Q16. Sales growth in overseas markets came in at 64.6% in currency-neutral terms.
Under Armour Looks at Aggressive Growth outside North America
Under Armour has added 250 shop-in-shops in Europe with retail partners as well as points of distribution in north and south Africa, the Middle East, and Turkey.
Foot Wars: Why Under Armour’s Shoes Are Selling at Higher Prices
Under Armour (UA) has increasingly looked to “premiumize” its product line. Its signature Curry Two shoe retailed $10 higher than the Curry One and still experienced very strong sell-through.
How Much Has Under Armour Increased Revenue Guidance?
Under Armour raised the higher end of its 2016 operating income estimate to $503 million–$507 million, implying a growth rate of 23.1%–24.1% over 2015.
Athleisurewear Giants: Which Companies Dominate Activewear?
The athleisurewear category has had a boost from higher interest in physical well-being globally and by increased participation by women in sports and other fitness activities.
Why Women Are Boosting Top-Line Gains for Activewear Retailers
The growing trend toward more casual apparel at work, higher sports participation, and more fitness activities for women is fueling a boom for activewear.
Outlook: Why Are Activewear Retailers in Expansion Mode?
Activewear companies are looking to increase sales (XRT) from specific demographic segments, particularly women and young athletes.
LULU Is Up by ~28% This Year, but What about Its Earnings Outlook?
Lululemon Athletica’s (LULU) management expects its fiscal 2017 diluted earnings per share to come in at $2.05–$2.15, an implied growth rate of 10.2%–15.6% year-over-year.
Lululemon’s Latest Outlook: Why Are More Revenue Gains Expected?
Based on Lululemon Athletica’s (LULU) healthy sales performance in fiscal 1Q17, the company has raised its sales and earnings per share outlook for the year.
Marketing and Branding: How Skechers Sells Its Footwear Products
To maintain its market share and drive sales, Skechers spends considerable time and effort in marketing activities to promote its footwear globally.
How Skechers Strategizes Its Product Sell-Through
Athletic footwear brand Skechers operates around 525 company-owned retail stores around the world. Of these, around 395 are located in the United States.
Skechers Footwear: Design, Sourcing, and Manufacturing Overview
Skechers designs footwear with its own in-house design team. However, it doesn’t own or operate any factories in which to conduct its manufacturing.
Mapping Skechers’ Key Future Growth Drivers
Between the start of 2012 and the end of 1Q16, Skechers added 114 net new stores in the United States and 81 in international markets.
Returns Performance: The Rise of Skechers’ Stock
After being a loss-making company in 2011, Skechers (SKX) has engineered a resurgence in financial performance from 2012 to the present.
Why Skechers’ New Stores Are Expected to Propel Its 2016 Growth
Skechers (SKX) expects to open around 55–65 company-owned retail (XRT) stores in 2016, including 20–25 new store openings in China.