The continuing slowdown in sales in the local market seems to be taking a toll on Under Armour (NYSE: UAA), despite the efforts to revive performance in North America. The sports apparel maker’s stock suffered on Tuesday after a popular market survey revealed the company is losing market share to rivals Nike (NYSE: NKE) and Adidas.
The latest Athletic Footwear and Apparel Brands survey, conducted by research firm B. Riley FBR, showed that consumers look elsewhere to purchase fashionable apparels and sportswear. People’s fast-changing brand preferences and the growing adoption of direct-to-customer sales model are the main headwinds currently facing Under Armour.
The data indicate that overall athletic footwear sales softened in 2019, compared to last year. Concerned over the fact that in footwear sales, the gap between Under Armour and its rivals has widened in the last couple of years, B. Riley reaffirmed its sell rating on the company and set the price target at $12.
Concerned over the growing gap between Under Armour and its rivals in sales, the research firm reaffirmed its sell rating on the company
In other words, companies that innovate extensively, both in terms of fashion and infrastructure, and incorporate the latest technology into their digital channels drive customers to physical and virtual stores. Currently, Nike, Reebok (RBK) and Adidas hold the top three positions in various categories.
While Under Armour stays at the third position in the apparels section, it has fallen below the market-leaders in the sneaker category. And, the primary factor that differentiates the company from others is the absence of innovation.
Under Armour might not be a good investment option under the present conditions as there is no guarantee that the recent uptick will be sustained in the coming weeks. The consensus rating by analysts covering the stock is hold. The average price target is approximately $20, which is broadly in line with Tuesday’s closing price.
Under Armour’s shares closed the day’s trading down 4%, after opening the session on a positive note. They have gained 31% in the past twelve months and 14% since the beginning of 2019 but remain far below the long-term average.
Nvidia Corporation (NASDAQ: NVDA) Wednesday said its fourth-quarter revenues and profit increased in double-digits amid elevated demand. The results also topped the Street view, driving the stock higher during the
Nutanix (NASDAQ: NTNX) reported second quarter 2021 earnings results today. Total revenue remained flat at $346.4 million compared to the same period a year ago. GAAP net loss was $287.3
Shares of Macy’s Inc. (NYSE: M) were down 2.7% in morning trade on Wednesday. The stock has gained 37% since the beginning of the year. A day ago, the retailer