Under Armour has Women Problems
Steve’s breakdown: The article below talks about the meltdown of Jordan Spieth at the Master and stock prices but the opportunity it reveals is Under Armour’s problem selling to women. Can You?
BALTIMORE, MD: Under Armour shares traded underwater Monday after a Morgan Stanley analyst downgraded the stock, sending shares tumbling by 5.5 percent to $41.15.
Spieth, comfortably leading the tournament after the first nine holes, saw his game fall apart on the pressured-filled back nine.
The Under Armour mannequin took a quadruple bogie on the 12th hole, ending his chances to win back-to-back Masters.
The double whammy shone a spotlight on the sports apparel company’s slowing growth.
Under Armour is losing market share for the first time in three years, particularly with women, Morgan Stanley’s Jay Sole said in his downgrade of the stock to underweight.
The first signs of this slowdown started to emerge late last year.
Under Armour’s SEC filings show that sales to its biggest customer — Dick’s Sporting Goods, according to Morgan Stanley — were down 8 percent in the fourth quarter last year.
“We think Under Armour’s issues in its women’s apparel business and running footwear create heightened risk that it will not deliver the numbers the Street expects long-term,” Sole wrote.