Analysts Predict That The Market Share Of Andrem Will Be Reduced And Share Prices Will Fall.

As the second sports brand of the United States, Under Armour Inc. Andrew has fallen sharply recently, probably because the golf spokesperson Jordan Spieth was defeated at the weekend of the US Masters game, mainly because analysts pointed out that Andemar's share declined.

Morgan Stanley Morgan Stanley analyst Jay Sole

According to SportScan's data in the report, the wholesale sales of Under Armour Inc. Andrew core are shrinking, and the wholesale clothing in the first quarter dropped by 2% compared with the same period last year. Women's clothing was especially weak due to the lack of fashion and fierce competition, followed by a 6% drop in the four quarter and a 7% fall.

He also believes that the growth rate of three digit sports shoes in North America is unsustainable.

Finally, Jay Sole expects that the slowdown in the whole sports and leisure industry may result in the group's failure to reach the first quarter sales targets.

However, it seems a little bit familiar.

stay

Inc.'s four week earnings report at the end of January, the two week, was also the data of Jay Sole and SportScan, which is also the largest category of clothing, especially the women's market share contraction. At that time, Morgan Stanley Morgan Stanley lowered the Under Armour Inc. (NYSE:UA) stock rating from "flat market" to "big market", and the target price was significantly reduced by 39.8%, from 103 US dollars to 62 US dollars, resulting in the stock price fell by 10% at the most.

However, the group's fourth quarter revenue and earnings continued to grow rapidly, and the excellent performance that exceeded market expectations immediately shut down analysts.

According to the no fashion Chinese network (micro signal: nofashioncn) data, the fourth quarter group revenue increased by 30.8% year by year, the growth rate is faster than the first three quarters of 20%+, the income of the previous year's 895 million 200 thousand US dollars increased to 1 billion 170 million 700 thousand US dollars, better than the market expectations of 1 billion 120 million U.S. dollars, which is closer to 3/4 than the largest category sportswear sales increased 22.2% to 864 million 800 thousand U. S. dollars.

Quarterly net profit of US $105 million 600 thousand increased by 20.4% compared with the same period last year, and the diluted earnings per share increased to US $0.48 from 0.40 US dollars in the same period of the previous year, which is better than the 0.46 US dollars in the market forecast. This is the group's ninth quarter earnings and earnings both better than market expectations.

Kevin Plank, founder, chairman and chief executive of Under Armour Inc., has countered the views of previous analysts in the earnings report, saying: "our core business is still very strong. The fourth quarter income growth of 31% confirms the continuous extension of our brand's depth and breadth.

Because Under Armour Inc. issued C class shares on Friday, equivalent to two of the stock split, Jay Sole gave Under Armour Inc. the latest target price of $32, and maintained the "big market" rating.

The market expects Under Armour Inc. Andrea to record a 29% revenue growth in the first quarter of fiscal year 2016, and the group will announce its first quarter results in April 21st.

Long term clients sporting goods in the United States

After The Sports Authority Inc. declared bankruptcy protection in early March, Under Armour Inc. Andrea group reiterated its forecast for fiscal year 2016, that is, the annual income increased by 25% to 4 billion 950 million dollars over the 2015 fiscal year and the operating profit rose 23% to 503 million US dollars.