Ron Baron Comments on Under Armour
- By Holly LaFon
Shares of athletic apparel company Under Armour, Inc. (UA) declined in the first quarter on reported earnings and guidance that missed Street expectations. Increased promotional activity, improved competitor positioning, and a key distributor's bankruptcy lowered wholesale revenue. The company is attempting to diversify its wholesale distribution domestically while growing into other geographies and categories, which will likely cut into profitability over the next year, in our view. We believe many of these issues are temporary and the long-term demand and earnings potential remain relatively intact. (Michael Baron)
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The intrinsic value of UA
From Ron Baron (Trades, Portfolio)'s first quarter 2017 Baron Partners Fund commentary.
This article first appeared on GuruFocus.
Warning! GuruFocus has detected 5 Warning Signs with UA. Click here to check it out.
The intrinsic value of UA