Just want to have a productive discussion with others who follow UAA, why can they just not seem to grow? I would consider Under Armour to be one of the more well known brands in sports with some of the biggest sponsorships out there (at least in the US).
When you compare market caps of UAA ($6B) to competitors such as NKE ($190B), Addidas ($36B US), hell even Puma is ($10.5B US). I mean, I know UAA is not Nike, obviously, but the metrics can still be compared. Their P/S is much lower at 1.1 compared to the others which are in the 3-4 range. Gross margin isn't terrible, it's actually better than Nike (51% vs 46%), they just don't have the sales volume obviously. Even when you look at a competitor in a single segment of UAA offerings (shoes), a company like ONON has a higher market cap ($7.5B) with negative income and a P/S of 10. Even LULU, has a market cap of $41B on pretty equivalent sales to UAA ($6.26B vs. $5.6B respectively). LULUs gross margin is a little better at 57% which is reflected in their income at nearly $1b, but UAA is right there with them at nearly $400m.
I mean their numbers aren't bad, the guidance of course isn't promising, but then again a lot of companies in retail are guiding down right now. It just seems they've stalled growth and can't break the international market. But they're still profitable, maintain good margins, and despite lowering guidance, expect to grow. What is it going to take for UAA to actually get out of this stagnant period? Just curious other's opinions.
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