Shares of Under Armour, led by their asshole CEO, are getting fucking hammered this morning, following a slight earnings disappointment. Growth is expected to slow to just 5-8% — which is not what Wall Street wanted to hear from the fast growing retailer.
Also, the company continues to pay up for revenues, suggestive of a company forcing the top line and susceptible to significant margin erosion and earnings collapse.
For the fourth quarter, expect revenues to grow approximately 20%. (Approx $1.404 bln, Capital IQ consensus $1.43 bln)
Gross margin is expected to be relatively flat versus prior year.
Expect operating income in the range of $186 million to $191 million, representing growth of 5% to 8% over the prior year.
Long-term outlook and associated guidance for next year.At 2015 Investor Day, we announced our goals of achieving $7.5 billion of revenues and $800 million of operating income by 2018. We are on track to achieve our 2018 revenue goal of $7.5 billion and expect to grow full year revenues consistently in the low-20s in both 2017 and 2018.
Expect annual operating income growth in the mid-teens in each of the next two years as focus on investing to GET BIG FAST.
North America Apparel growth is slowing across the industry.While expect to continue to significantly outpace the apparel industry, the growth rate going forward will be less than expected from our Investor Day in 2015.
We could choose to optimize for more near-term profits but we believe it is more prudent to invest to maintain superior growth rates while gaining both share and scale. That said, we will invest more heavily in areas that we can grow faster such as footwear, direct-to-consumer and international as well as more aggressively enter Sport Fashion, like UAS, and the much broader sports lifestyle category.
International growth includes being more aggressive in key markets where we are gaining significant awareness such as Asia.
Beyond 2018, we believe we have opportunities across categories, channels and geographies to consistently deliver superior revenue growth relative to our industry. We also believe that as we approach $10 billion in revenues, the scale it provides along with the investments we have made in people, infrastructure and systems will begin to pay off in the form of increasing operating margin rates.
The street sees through the typical UA horseshit and is punishing the shares in an Old Testament fashion.
With a FPE of 50x compared to 20x for NKE, UA is obscenely overvalued, if the growth narrative is dead.
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If this was in your fists of death (which I look forward to reading on Exodus), I’d call you a soothsayer. Although batting .66667 is basically impossible. Great call on CAT and FCX.
stock jockies gun load up on p/e200 and p/e300 stawkz like AMZN & NFLX ….
stock jockies need to check tickers LOL & PNZ = ponzi
I have to say I’m loading up here for the first half of a long term starter stock. Will add again soon if I get the chance. Bought some in pre-market. I have been waiting for this one to pullback.
I sold this after Speith imploded in the Masters. If this is no longer a growth stock it has no support at all. Steph Curry is also not a money magnet. Beware.