Posts

Showing posts with the label athleisure

IB Net Payout Yields Model

Is Nike Under Assault?

The success of the last decade is leading to increased competition. Increasingly, Adidas and Under Armour are making strides in endorsement deals by ramping up spending. Nike is an expensive stock for one facing a more competitive environment. In the business world, the typical price of success is increased competition. A company that has seen huge stock gains or generates large profits can expect a flood of new competition. Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Please review the disclaimer page for more details. 

Under Armour: Struggling To Justify Higher Prices

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. Read the full article on Seeking Alpha. Disclosure: No positions mentioned. Please review the disclaimer page for more details.