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Under Armour (UAA) Gains on Strategic Innovations, Expansions
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Under Armour, Inc. (UAA - Free Report) has concentrated on its operational and financial aspects to drive long-term returns. The company’s commitment to strategic growth, brand strength, product innovation and global expansion positions it well for success.
Under Armour's successful branding and marketing strategies, highlighted by endorsements from high-profile athletes and teams, have significantly elevated its brand presence. The company’s growth in digital and social media engagement points to an effective and contemporary approach to marketing, resonating well with its target audience.
Significant progress in product innovation, especially in the footwear and women's categories, underscores Under Armour's commitment to diversifying its product line. Collaborative efforts, such as the Curry-Bruce Lee collection, have been well-received, reflecting the company's ability to innovate and stay relevant in a competitive market.
In the United States, Under Armour has expanded its premium wholesale distribution and mall presence. The UA Rewards loyalty program, exceeding 1 million members, highlights its strong customer engagement and brand loyalty in second-quarter fiscal 2024.
Image Source: Zacks Investment Research
International Growth Bodes Well
Solid growth in the international markets, particularly in EMEA and APAC, aligns with the company's global expansion goals. In second-quarter fiscal 2024, revenues from the international business increased 5% (up 3% on a currency-neutral basis) to $485 million. Within the international business, net revenues in EMEA jumped 9% to $226.6 million (up 4% at constant currency) and 3% in the APAC (up 7% at constant currency).
This growth is marked by store openings and tailored marketing strategies that cater to regional preferences and trends. The company's success in these markets indicates a strong understanding of diverse consumer needs and the ability to adapt its brand and products accordingly. This international expansion is a key part of Under Armour's strategy to increase its global footprint and diversify its revenue streams. The international business is expected to perform well, with an anticipated low-double-digit growth rate.
DTC Business - A Key Factor
Under Armour is actively enhancing its direct-to-consumer (DTC) segment by expanding its retail store footprint and improving its online shopping platform. The company is focusing on digital advancements to propel DTC channel growth, incorporating features like online purchasing with in-store pickup options and various payment flexibilities.
In the second quarter of fiscal 2024, Under Armour's DTC revenues saw a 3% year over year rise, reaching $596 million. This increase was partly fueled by 2% growth in e-commerce sales, which accounted for 35% of the DTC segment's total quarterly revenues.
Wrapping Up
Under Armour is focusing on long-term growth through brand strengthening, product innovation and global expansion. Its effective branding and marketing, supported by high-profile endorsements and digital engagement, have significantly enhanced its presence. However, the macroeconomic environment remains uncertain, characterized by continued inflation, mixed consumer confidence and the effects of wholesale channel de-stocking. These factors contribute to a softer order book.
In the past three months, shares of this Zacks Rank #3 (Hold) company have rallied 17.4% compared with the industry’s growth of 23.9%.
Bet Your Bucks on These Hot Stocks
A few better-ranked stocks are G-III Apparel Group, Ltd. (GIII - Free Report) , lululemon athletica inc. (LULU - Free Report) and Deckers Outdoor Corporation (DECK - Free Report) .
G-III Apparel Group is a manufacturer, designer and distributor of apparel and accessories under licensed brands, owned brands and private label brands. The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for G-III Apparel Group’s current fiscal-year earnings indicates growth of 39.3% from the previous year’s reported figures. GIII has a trailing four-quarter average earnings surprise of 541.8%.
lululemon athletica designs, manufactures and distributes athletic apparel and accessories for women, men and female youth. The company currently has a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for lululemon athletica’s current fiscal-year earnings and sales indicates growth of 23.3% and 18.3%, respectively, from the previous year’s reported figures. LULU has a trailing four-quarter average earnings surprise of 9.2%.
Deckers is a leading designer, producer and brand manager of innovative, niche footwear and accessories. It currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for Deckers’ current fiscal-year earnings and sales indicates growth of 21.9% and 13.4%, respectively, from the previous year’s reported figures. DECK has a trailing four-quarter average earnings surprise of 26.3%.
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Under Armour (UAA) Gains on Strategic Innovations, Expansions
Under Armour, Inc. (UAA - Free Report) has concentrated on its operational and financial aspects to drive long-term returns. The company’s commitment to strategic growth, brand strength, product innovation and global expansion positions it well for success.
Under Armour's successful branding and marketing strategies, highlighted by endorsements from high-profile athletes and teams, have significantly elevated its brand presence. The company’s growth in digital and social media engagement points to an effective and contemporary approach to marketing, resonating well with its target audience.
Significant progress in product innovation, especially in the footwear and women's categories, underscores Under Armour's commitment to diversifying its product line. Collaborative efforts, such as the Curry-Bruce Lee collection, have been well-received, reflecting the company's ability to innovate and stay relevant in a competitive market.
In the United States, Under Armour has expanded its premium wholesale distribution and mall presence. The UA Rewards loyalty program, exceeding 1 million members, highlights its strong customer engagement and brand loyalty in second-quarter fiscal 2024.
Image Source: Zacks Investment Research
International Growth Bodes Well
Solid growth in the international markets, particularly in EMEA and APAC, aligns with the company's global expansion goals. In second-quarter fiscal 2024, revenues from the international business increased 5% (up 3% on a currency-neutral basis) to $485 million. Within the international business, net revenues in EMEA jumped 9% to $226.6 million (up 4% at constant currency) and 3% in the APAC (up 7% at constant currency).
This growth is marked by store openings and tailored marketing strategies that cater to regional preferences and trends. The company's success in these markets indicates a strong understanding of diverse consumer needs and the ability to adapt its brand and products accordingly. This international expansion is a key part of Under Armour's strategy to increase its global footprint and diversify its revenue streams. The international business is expected to perform well, with an anticipated low-double-digit growth rate.
DTC Business - A Key Factor
Under Armour is actively enhancing its direct-to-consumer (DTC) segment by expanding its retail store footprint and improving its online shopping platform. The company is focusing on digital advancements to propel DTC channel growth, incorporating features like online purchasing with in-store pickup options and various payment flexibilities.
In the second quarter of fiscal 2024, Under Armour's DTC revenues saw a 3% year over year rise, reaching $596 million. This increase was partly fueled by 2% growth in e-commerce sales, which accounted for 35% of the DTC segment's total quarterly revenues.
Wrapping Up
Under Armour is focusing on long-term growth through brand strengthening, product innovation and global expansion. Its effective branding and marketing, supported by high-profile endorsements and digital engagement, have significantly enhanced its presence. However, the macroeconomic environment remains uncertain, characterized by continued inflation, mixed consumer confidence and the effects of wholesale channel de-stocking. These factors contribute to a softer order book.
In the past three months, shares of this Zacks Rank #3 (Hold) company have rallied 17.4% compared with the industry’s growth of 23.9%.
Bet Your Bucks on These Hot Stocks
A few better-ranked stocks are G-III Apparel Group, Ltd. (GIII - Free Report) , lululemon athletica inc. (LULU - Free Report) and Deckers Outdoor Corporation (DECK - Free Report) .
G-III Apparel Group is a manufacturer, designer and distributor of apparel and accessories under licensed brands, owned brands and private label brands. The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for G-III Apparel Group’s current fiscal-year earnings indicates growth of 39.3% from the previous year’s reported figures. GIII has a trailing four-quarter average earnings surprise of 541.8%.
lululemon athletica designs, manufactures and distributes athletic apparel and accessories for women, men and female youth. The company currently has a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for lululemon athletica’s current fiscal-year earnings and sales indicates growth of 23.3% and 18.3%, respectively, from the previous year’s reported figures. LULU has a trailing four-quarter average earnings surprise of 9.2%.
Deckers is a leading designer, producer and brand manager of innovative, niche footwear and accessories. It currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for Deckers’ current fiscal-year earnings and sales indicates growth of 21.9% and 13.4%, respectively, from the previous year’s reported figures. DECK has a trailing four-quarter average earnings surprise of 26.3%.