Andrew Two Was Downgraded By Analysts Before The Quarterly Report.

Under Armour Inc. (NYSE:UAA) Andrea Before next week's two quarter results were downgraded by analysts, but investors were uneasy after the first quarter of the group's sales growth dropped to a single digit and recorded its first loss since listing. Under Armour Inc. (NYSE:UAA) share price did not fluctuate significantly.

Deutsche Bank AG Deutsche Bank analyst Paul Trussell lowered the rating of Under Armour Inc. (NYSE:UAA) from "hold" to "sell", and the target price remained at 17 US dollars, which was 15.5% lower than that of the stock market closed at $20.11 on Tuesday. According to FactSet data, the stock has 7 "buy" ratings, but only one more than the "sell" rating.

Since 2017, Under Armour Inc. (NYSE:UAA) has fallen by 30.8%, most of which came from the negative reaction of the market after the four quarter earnings announcement in January, while the S & P 500 index recorded a 10% increase this year.

Paul Trussell pointed out that the difficult sales environment and the overall adjustment of the industry were the reasons for their lack of confidence in the short term development of Under Armour Inc.. He also believes that with the drive to grow, we must directly face consumer channels, international business and Design The investment made by R & D will dilute the profits, and the growth space of EPS is limited, so it is doubtful about the group's high valuation.

On Monday, Hibbett Sports Inc. (NASDAQ:HIBB), a sporting goods retailer with over 1000 stores in the United States, issued an early warning of sales and earnings, which once again sounded the alarm for the fiercely competitive sports market. The Group expects a 10% decline in same store sales in the two quarter, while the market expected a drop of only 2%. Although its performance has gone backwards, it reflects the overall situation of the industry, but it is worth noting that the sale of Hibbett Sports Inc. 16.5% comes from Under Armour Inc. Andrea.

Paul Trussell believes that Under Armour Inc. will be restored. clothing And double-digit sales growth in footwear can support stock prices to break through the current level. Data show that in the first quarter, the group's largest category of clothing only recorded a 7.2% growth, while the past 2% years showed very bright footwear growth rate dropped to more than 2%. Nike Inc. (NYSE:NKE) Nike group and Adidas AG (ADSGn.DE) Adidas group continue to promote growth through technological innovation and trend design. Under Armour Inc. Andrea is weak in these two aspects.

What's more, consumers' pursuit of sports and leisure lifestyle products is not conducive to Under Armour Inc. Andrea, who is good at embody the product's functions. Paul Trussell pointed out that this trend is more beneficial to Nike Nike and Adidas Adidas, and the growth space of Under Armour Inc. Andrea is also oppressed by many new brands. For example, Under Armour Inc. Andrew's main wholesale partner Dick 's Sporting Goods Inc. (NYSE:DKS) is focusing on promoting its own sportswear brand Second Skin, and also gives the singer star's clothing brand a lot of shelf space.

Another major customer, Finish Line Inc. (NASDAQ:FINL), also reflected last month that the heat of Under Armour Andrea brand continued to decline, while the two brands of Nike, Nike and Adidas continued to dominate the sports retail market.

According to L&F Capital Management, two years ago, when Under Armour Inc. Andemar was still popular in the capital market, Finish Line Inc. management mentioned the group for the 9 time in the performance analyst conference, and highly praised the Under Armour Stephen brand of the Under Armour. Two years later, at the performance analyst meeting in June 23rd, Under Armour Andrea was mentioned only once. Finish Line Inc. management revealed that the last season's sales of basketball shoes were mainly the Jordan brand and the boots of Kyrie Kyrie and Paul George of Nike Nike's stars, and the sneakers of the sneakers were popular, including the Nike Nike brand's Retro Running Style and the Adidas, Adidas and Nike models. Foot Locker Inc. (NYSE:FL) executives have also indicated in recent quarters that Under Armour Inc. Andrea is going downhill.

Under Armour Inc., founded in 1996, has achieved $4 billion 800 million in fiscal year 2016 after its rapid growth in recent years, but its growth has slowed down since last year.

According to the world clothing and shoe net, as of the first quarter of March 31st, the net income of Under Armour Inc. Andemar increased by only 6.6%, to $1 billion 117 million 300 thousand, and 1.1% in the North American home market, which accounted for nearly 80% of the group's business, and its operating profit dropped by 90%.

Faced with a setback in performance, the group's founder, chairman and CEO Kevin Plank has finally been willing to lower the power of day-to-day management and focus on rekindling brand growth. Although the company has been on the rise in the past 10 years, the market rumors say that Kevin Plank has strong control over the past three years.

Since July 10th, Kevin Plank has no longer been the president of Under Armour Inc. Andrew group, and has been successor to the former CEO Patrik Frisk of the Canadian shoe shoe group Aldo Group Inc., the same time as the chief operating officer of the group in 2015.

In June, the group appointed Paul Fipps and Colin Browne respectively as chief technology officer and chief supply chain officer. Last month, Kevin Eskridge has replaced the group co founder Kip Fulks as chief product officer. After a new appointment, the number of executives reporting directly to Kevin Plank dropped from 10 to 6.

Under Armour Inc. Andrew will announce its two quarter results in August 1st.

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