Under Armour: shares down after negative broker comments
(CercleFinance.com) - Shares in US athletic apparel maker Under Armour are down over 1% after negative broker comments were made on Thursday.
In a note published overnight, Philadelphia based broker Susquehanna said it has "greater confidence" in its negative view, saying recent filings reveal that the company's brand and inventory positions remain "precarious."
"We believe Under Armour's International business, while growing quickly, is heading down a similar path as North America given optimistic targets (which were missed in fourth-quarter 2017), elevated inventory, and deteriorating margins," the broker wrote in its report.
As such, Susquehanna does not believe Under Armour will manage to achieve its gross margin and earnings guidance for 2018.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
In a note published overnight, Philadelphia based broker Susquehanna said it has "greater confidence" in its negative view, saying recent filings reveal that the company's brand and inventory positions remain "precarious."
"We believe Under Armour's International business, while growing quickly, is heading down a similar path as North America given optimistic targets (which were missed in fourth-quarter 2017), elevated inventory, and deteriorating margins," the broker wrote in its report.
As such, Susquehanna does not believe Under Armour will manage to achieve its gross margin and earnings guidance for 2018.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.