by winston » Fri Dec 11, 2020 9:08 pm
not vested
Under Armour (UAA)
Under Armour was a great success story for the first half of the 2010s. Investors who put $10,000 into UAA stock at the beginning of 2011 would have seen their investment grow to over $70,000 by September 2015.
Hindsight being 20/20, investors can see that that time period was basically an inflection point for UAA. The market sell-off that ensued for the next two years brought the stock back down to the teens.
NBA fans will recognize Under Armour for its affiliation with Steph Curry of the Golden State Warriors. The company focus on “authenticating ourselves as a premium player remains paramount to our long-term success” has relied heavily on Curry. However, Steph Curry alone cannot outsell Nike (NYSE:NKE) or Adidas (OTCMKTS:ADDYY).
The company reported nearly $3.826 billion in revenues through three quarters in 2019, resulting in $107 million in profits.
This year, Under Armour has done nearly $3.071 billion in sales during the same period. However, the company recorded a loss of $733.6 million.
Clearly, the company operates at a break-even point somewhere above $3.071 billion in sales, which seems inefficient.
Ultimately, a $733 million loss is bad no matter how you slice it.
I don’t see UAA stock approaching 2015 levels again soon, if ever.
Source: Investor Place
It's all about "how much you made when you were right" & "how little you lost when you were wrong"