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Under Armour And Stephen Curry Are In Big Trouble

Under Armour And Stephen Curry Are In Big Trouble

Under Armour made a huge statement some time ago with that incredible Stephen Curry contract after falling short on Kevin Durant, stating that they were keen to compete with better-positioned brands as Jordan, Nike or Adidas.

And, despite an obvious rise in sales after locking down one of the league’s biggest stars and 2 time MVP and NBA Champion, apparently they're still not ready to fight with the big boys, as they recently announced that they’re currently struggling with operations.

As a matter of fact, that Stephen Curry signing is a huge part of the problem, as even if numbers are good, they’re nowhere near what was expected of them back then in 2015, representing a huge issue for the company’s value.

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In fact, Under Armour has reportedly lost 3 cents per share, representing a total loss of over 12.31 million dollars on revenues of 1.09 billion, making the company admit that their operations are currently “a mess”.

Still, projections aren't’ that mess right now, so investors may be wise to give UAA a shot in the foreseeable future, although they should take a very careful approach, not like Under Armour did with that wealthy deal they inked Curry too.

According to the Investor Place:

Under Armour has been struggling to keep up with investor expectations since 2015, though things really went downhill after one of its biggest retail outlets, Sports Authority, was dissolved in 2016. Hibbett Sports, Inc.(NASDAQ:HIBB) also is having trouble, and the company’s online traffic share is trending down, indicating more market share losses are on the way.

If the stock had not split 2-for-1 in 2016 — in a move engineered to maintain CEO Kevin Plank’s control of the company — there might be bullish pressure to sell out. But that can’t happen now, so investors are just walking away.

The “trap” identified by Lango sent UAA stock soaring to as high as $20.65 in mid-day trade on July 31, and its opening on Aug. 1 will send them back down to $19, near the low for the year. The bulls were hoping that endorsee Stephen Curry’s victory in the NBA Finals, and the hiring of Patrik Frisk (formerly of the Aldo Group) as company president would right the ship.

It will be very interesting to see what is the next move for the Under Armour. Maybe they should sign more superstars because Curry is not like Michael Jordan. They need to sign someone else because it's kind of boring to have only shoes with Stephen Curry brand there.