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Kevin Plank Just Compared Under Armour to Tom Brady
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Just days after New England Patriots quarterback Tom Brady led his team to an historic comeback victory in Super Bowl LI, the five-time champion is being used by his apparel sponsor, Under Armour (UAA - Free Report) , as an example of what happens when you bet against a winner.
In an interview with CNBC, Under Armour CEO Kevin Plank compared his company to Brady as a means of explaining why investors should remain optimistic about the brand despite its most recent disappointing earnings report.
“[You] tell me: Do you believe this is the team that’s done this for 21 years, 11 years public and knows how to win?,” Plank told CNBC. “You know, I think a lot of people bet against Tom Brady the other night too.”
Just last week, shares of Under Armour plummeted more than 20% after the company released its fourth-quarter earnings results. The sports apparel maker posted earnings of 23 cents per share, which missed the Zacks Consensus Estimate by two cents.
Quarterly revenues also fell short of estimates, and investors were even more concerned about the company’s slowing growth in North America. Furthermore, Under Armour announced that its chief financial officer will be stepping down after just a year at the company.
It has been quite the tough stretch for Under Armour, as both its primary stock and its Class C shares (UA - Free Report) have lost more than 30% of their value over the past four weeks.
Plank maintained that Under Armour is a company with a lot of room to grow. He pointed out that current outlook projects double-digit growth, which is comparable with its industry competitors, while also stating that the business is “young.”
Under Armour witnessed a period of intense brand exposure after its bets on athletes like Steph Curry paid off better than the company could have imagined. Now the brand has deals with some of the world’s top athletes, including Curry, Brady, and pro-golfer Jordan Spieth.
But now even Steph Curry may be a cause for concern at Under Armour, as the two-time NBA MVP now plays alongside Kevin Durant, a debatably better player that happens to be signed to Nike (NKE - Free Report) .
Nevertheless, Plank is publicly optimistic about the company and remains one of the most noteworthy executives in the apparel industry. Whether or not investors will be encouraged by this optimism remains to be seen.
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Kevin Plank Just Compared Under Armour to Tom Brady
Just days after New England Patriots quarterback Tom Brady led his team to an historic comeback victory in Super Bowl LI, the five-time champion is being used by his apparel sponsor, Under Armour (UAA - Free Report) , as an example of what happens when you bet against a winner.
In an interview with CNBC, Under Armour CEO Kevin Plank compared his company to Brady as a means of explaining why investors should remain optimistic about the brand despite its most recent disappointing earnings report.
“[You] tell me: Do you believe this is the team that’s done this for 21 years, 11 years public and knows how to win?,” Plank told CNBC. “You know, I think a lot of people bet against Tom Brady the other night too.”
Just last week, shares of Under Armour plummeted more than 20% after the company released its fourth-quarter earnings results. The sports apparel maker posted earnings of 23 cents per share, which missed the Zacks Consensus Estimate by two cents.
(Also Read: This is Why Under Armour is Crashing After Earnings)
Quarterly revenues also fell short of estimates, and investors were even more concerned about the company’s slowing growth in North America. Furthermore, Under Armour announced that its chief financial officer will be stepping down after just a year at the company.
It has been quite the tough stretch for Under Armour, as both its primary stock and its Class C shares (UA - Free Report) have lost more than 30% of their value over the past four weeks.
Plank maintained that Under Armour is a company with a lot of room to grow. He pointed out that current outlook projects double-digit growth, which is comparable with its industry competitors, while also stating that the business is “young.”
Under Armour witnessed a period of intense brand exposure after its bets on athletes like Steph Curry paid off better than the company could have imagined. Now the brand has deals with some of the world’s top athletes, including Curry, Brady, and pro-golfer Jordan Spieth.
But now even Steph Curry may be a cause for concern at Under Armour, as the two-time NBA MVP now plays alongside Kevin Durant, a debatably better player that happens to be signed to Nike (NKE - Free Report) .
(Also Read: As Teammates Outshine Steph Curry, Should Under Armour Worry?)
Nevertheless, Plank is publicly optimistic about the company and remains one of the most noteworthy executives in the apparel industry. Whether or not investors will be encouraged by this optimism remains to be seen.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>