- Under Armour generated strong revenue growth during Q3'15 that led to beating analyst estimates.
- The company is working on numerous initiatives that are increasing revenues at the cost of margins.
- The stock valuation isn't justified by growth path laid out by the company.
The quarterly results for Under Armour (NYSE:UA) were generally impressive, but the stock sank over 5% as the retailer couldn't match sky-high investor expectations. The stock has struggled over the last couple of months when it exceeds $100. Even bullish revenue targets released at the Investor Day a month ago were met with the stock hitting resistance around $105.
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