Under Armour Inc (UA)

Under Amount (UA) stock fell by 10.15% due to the unexpected return of founder Kevin Plank as CEO. Investors reacted to the news of the leadership change, with shares of the athletic apparel brand dropping significantly.

• Kevin Plank's Return: Kevin Plank, who founded Under Armour in 1996 and led the company through most of its growth, has returned to the helm after stepping down four years ago. He replaces Stephanie Linnartz, who had joined about a year ago after a long tenure at Marriott International.
• Investor Uncertainty: The timing and nature of the CEO change caught investors off guard, as Linnartz was in the early stages of a three-year turnaround plan for the brand. Plank's return raises questions about the direction and strategy of Under Armour moving forward, particularly as the company navigates post-pandemic consumer trends and industry challenges.
• Strategic Outlook: Plank expressed optimism about the company's future and highlighted the team's efforts to drive success for athletes, customers, and shareholders. However, the market response suggests investor skepticism about the abrupt change in leadership and its implications for Under Armour's turnaround efforts.
• Market Reaction and Analyst Views: Wall Street tends to react negatively to surprises, and investors are cautious following this development. While Linnartz was well-regarded, the CEO change implies that her strategy may not have been gaining traction as expected. Plank's previous tenure was marked by rapid growth, but replicating that success in the current environment presents challenges.

Under Amour Inc (UA) stock dropped by 5.79% due to JPMorgan's placement of the sportswear company on negative catalyst watch. JPMorgan analysts, who had previously rated UAA with a Neutral rating and a $8 per share price target, expressed concerns regarding potential downside risks to sales and profit estimates for the second half of fiscal 2024. They pointed to increased discounts during key shopping events such as Black Friday, Cyber Monday, and the January semi-annual sale in North America. Additionally, management's caution signals in Asia and Europe contributed to their apprehension.

Under Armour Stock (UA) dropped by 5.05% from $6.93 to $6.58 in the trading on Monday November 13, 2023. The reason why UA stock down today is due to the second-quarter earnings last week. Despite exceeding quarterly expectations and providing strong guidance, AppLovin has announced that its current CFO, Herald Chen, will be leaving the company at the end of the year to pursue other opportunities.

• Revenue of $1.57 billion met the analyst consensus estimate, a 0.44% decrease over sales of $1.57 billion from the same period last year.
• Quarterly earnings of 24 cents per share which beat analyst expectations of 21 cents, representing an increase of 20% compared to earnings of 20 cents per share from the same period last year.