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Under Armour stock fell about 9% yesterday as the company gave Q2 estimates that
were “well below analysts’ expectations,” according to Andrea Walker of the Baltimore
SUN. The company expects to earn $0.02-0.03 per share in Q2, compared to analysts’
projections of $0.07. UA is “spending more money on marketing to launch a sequel
to its popular ‘click clack’ advertising campaign,” and will also “incur costs
for putting its logo on the outfield wall of Wrigley Field.” But UA Chair & CEO
Kevin Plank said that the company is “still on track to meet its year-end guidance.”
Plank: “It’s just a matter of shift. We’re anticipating a large spend, a large
marketing initiative.” BB&T Capital Markets Senior Research Analyst Eric Tracy
said, “Anytime the quarterly guidance comes in below where the Street is looking,
there is a little bit of concern. ... We’re OK with it as long as the execution
continues out and they do in fact hit those thresholds.” Walker reports UA’s Q1
earnings increased 13.8%, “helped by an expansion of its baseball and golf lines.”
Plank also said that UA “plans to open its first full-concept retail store in
Maryland later this year” (
Baltimore SUN, 5/2). At presstime, shares of
UA were trading at $46.29, up 0.50% from yesterday’s close of $46.06 (
THE DAILY).
