Under Armour (UAA) is considering an exit from several sporting categories including; tennis, fishing and outdoor gear, amidst slowing sales. Should the decision be made to eliminate their smaller businesses, the company would look to grow its lifestyle line and return to its performance gear roots. Founder Kevin Plank hinted at a restructuring in September saying, “we just can’t do everything”. In unrelated UAA news, COO Kip Fulks will be taking a sabbatical; his replacement has not been named.
Howie Long-Short: The Under Armour name is synonymous with sweat wicking performance gear, not the great outdoors, so a renewed focus on the company’s core competency sounds logical. Waiting on the Curry 4 or a subscription box service to change the company’s fortunes, does not. UAA shares are down 42% in ’17, following 6 years of 20%+ top line growth. UAA will report Q3 results on 10/31.
Fan Marino: Sponsorship deals with Andy Murray and Sloane Stephens will not be affected, should UAA cut tennis. Speaking of UAA athletes, Sports Business Daily conducted a recent survey to identify the most marketable players in the NBA; Steph Curry finished second. LeBron James finished first, picking up 39 out of 49 first place votes; with Russell Westbrook, Kevin Durant and James Harden rounding out the Top 5.
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