Under Armour Inc. (UA) is an American athletic clothing and accessories manufacturer. The company’s shares can comfortably overcome the $18 mark in January and could soon rebound to February 2020 prices. The coronavirus has seriously affected Under Armour’s capitalization, but recent developments have caused investors to rethink their estimation.
Under Armour opted to create its own goal product name. In specific, under the brand Curry, we are talking about making advanced sports shoes. Since he started wearing the latest Curry Flow 8 footwear, NBA star Stephen Curry had already managed to score more than 60 points, which he claimed was the first really serious effort to make genuinely revolutionary shoes. However, other producers were only seeking to make money by having on their goods the name of the basketball star. The key feature of the shoe is the Under Armour UA Flow shock-absorbing cushion, which was designed to facilitate jumping.
The group has also launched brands such as HOVR (shoes) and RUSH (training equipment). In other words, after years of stagnation in terms of revolutionary goods, Under Armour is doing its hardest to win back the favor of consumers who have turned away from the brand.
The distinction between Curry Brand and Nike’s Jordan Brand indicates itself, but only Michael Jordan’s brand is a multi-billion dollar revenue business: annual revenues surpass $3.5 billion, not far from Under Armour’s overall estimates of $4.2 billion. On the other hand, Curry Brand in the third quarter pulled in just $299 million.
The introduction of new products, however, allowed Under Armour to revive sales dramatically. The company managed to raise $1,422 billion in the third quarter, which is 0.2 percent more than in the same period in 2019. However, the organization has not yet managed to get out of the financial difficulties associated with the pandemic: sales were lower by 19.7 percent a year over the first 9 months of 2020.
In the fourth quarter, analysts anticipate revenue to decline by 12.5 percent, while Nike (whose figures compare closely with those of Under Armour) announced sales growth of 9.9 percent in the quarter ended in November and expected revenue growth of 8.6 percent in the next quarter, ending in February. So, Under Armour (UA) being a business that has the potential to surprise investors, which could have a positive effect on the share price, the medium-term margin for the stock is about 20% to reach the level at which the company was a year ago.