Under Armour is Re-establishing itself as a Premium Brand Under […]
Is Under Armour (UAA) Making a Comeback?
Is Under Armour (UAA) Making a Comeback?
Under Armour has had a tough go in the last 5-6 years. Shares are trading ~60% lower from the company's 2015 highs, driven down by sluggish growth and management blunders. The company recently settled SEC charges for misleading investors between 2015-2016, and now investors are hopeful the company is making a turnaround. Is LikeFolio data picking up on major renewed consumer interest in Under Armour products? Not yet.
Under Armour demand growth is waning YoY, with similar weakness noted in eCommerce growth. On a positive note, existing Under Armour consumer are happy. UAA has the highest happiness rating among athletic wear providers, tied in the top spot with Lululemon at 77% positive.
The company has also made strides to streamline its focus, selling off MyFitnessPal at the end of 2020: On its last earnings call, UAA noted, "...On a two-year stack, that is skipping over 2020, we're running a better, higher quality, and more profitable business. This is even more evident because of the strategies we've employed over the past couple of years, including significantly reduced sales to the off-priced channel, proactive supply constraints against demand signals to days of exiting undifferentiated distribution, and certainly, on an annual basis, the absence of MyFitnessPal, which we sold at the end of last year." Under Armour reports 21Q2 earnings August 3 before the bell. We'll be watching to see if the company's refocused vision will move the needle with consumers.