The consumer discretionary sector continues to be an attractive space for investors seeking growth opportunities. While companies in this category are sensitive to economic cycles, many have shown remarkable adaptability, innovation and a strong focus on customer engagement. Among the standouts, Under Armour, Inc. (UAA) shines with its strong brand presence and strategic growth initiatives.Under Armour’s Strategy for GrowthUnder Armour is strategically positioning itself for sustained growth by refining its ...

Strategic Focus - The company is focusing on premium product offerings, operational efficiency, and global expansion to drive growth and market differentiation [1] - Under Armour is refining core products, enhancing direct-to-consumer (DTC) channels, and strengthening customer loyalty through its membership program [1] - The company is leveraging athlete partnerships and data-driven marketing to elevate its global presence and competitive positioning [2] Product and Operational Strategy - Under Armour is investing $40 million in brand-building marketing efforts across the Americas, EMEA, and Asia-Pacific regions [5] - The company is simplifying its product line, reducing SKU complexity, and adopting a selective promotional approach to boost profitability [6] - Under Armour is targeting young athletes and team sports in the Americas, premium distribution in EMEA, and brand equity in the Asia-Pacific region [8] Global Expansion and E-Commerce - The company is expanding its international footprint with high-profile athlete endorsements, such as Stephen Curry in China and De'Aaron Fox's signature shoe launch [9] - Under Armour opened a 24,000-square-foot flagship store in Baltimore, offering a premium retail experience and setting a standard for future stores [10] - Full-price e-commerce sales now account for 50% of online revenues, up from 30% a year ago, with DTC sales increasing 7.6% year-over-year to $550.3 million in Q2 FY25 [11] Customer Loyalty and Membership Growth - The loyalty program has nearly 13 million members in the U.S. and 28 million globally, with 6 million new members added in Q2 FY25 [12] - Active members contribute to approximately 50% of U.S. DTC revenues, generating 50% more revenue per customer and nearly doubling the repurchase rate compared to non-members [12] Financial Performance and Outlook - Gross margin increased by 200 basis points to 49.8% in Q2 FY25, driven by reduced promotional activities, optimized product costs, and favorable channel mix [13] - Adjusted SG&A expenses decreased by 13% year-over-year to $530.1 million, aided by lower marketing expenses, headcount reductions, and insurance recovery [14] - The company expects a gross margin increase of 125-150 basis points for FY25, with adjusted SG&A expenses decreasing in the low to mid-single-digit percentage range [15] Industry Comparison - Under Armour's stock has gained 3.3% in the past six months, outperforming the Zacks Textile – Apparel industry's 4.2% decline [17] - Other top-ranked stocks in the industry include The Gap, Inc. (GAP), Abercrombie & Fitch Co. (ANF), and Deckers Outdoor Corporation (DECK) [18][19][20][21]

Under Armour (UAA) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.Since ...

Under Armour, Inc.’s (UAA) focus on premiumization, operational efficiency and global expansion is positioning it for sustained growth and market differentiation. The company’s emphasis on refining core product offerings, expanding its direct-to-consumer (DTC) channels, and strengthening brand loyalty through its membership program is fostering deeper consumer engagement and increasing revenue potential. Strong athlete partnerships and data-driven marketing efforts are enhancing Under Armour’s global presen ...

Under Armour, Inc.’s (UAA) investor meeting in New York City provided a comprehensive overview of its strategy to drive sustainable growth and create long-term shareholder value. The company reaffirmed its fiscal 2025 outlook and emphasized UAA’s vision as a "global Sports House," equipping athletes with performance-driven solutions. Key strategies discussed included product innovation, regional market tactics and improving organizational efficiency to drive execution.A major focus for Under Armour is refin ...

BALTIMORE, Nov. 21, 2024 /PRNewswire/ -- Under Armour, Inc. (NYSE: UA, UAA) today announced that it will hold an investor meeting on Thursday, Dec. 12, 2024. At the event, President & Chief Executive Officer Kevin Plank, along with other senior executives, will provide an in-depth qualitative update on the company's product, brand, and commercial strategies, as well as the key initiatives Under Armour is executing to strengthen its premium positioning and improve shareholder value creation for the long term ...

Momentum investing is essentially an exception to the idea of "buying low and selling high." Investors following this style of investing are usually not interested in betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time.Everyone likes betting on fast-moving trending stocks, but it isn't easy to determine the right entry point. These stocks often lose momentum when their future growth potenti ...

Under Armour (UAA) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving.The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this sports apparel company, should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estima ...

Shares of Under Armour, Inc. (UAA) have experienced a surge over the past six months. The stock has rallied 48.4%, comfortably outpacing the Zacks Textile – Apparel industry’s modest 6% growth. The company’s impressive growth can be attributed to its operational efficiencies, a focus on full-price direct-to-consumer (DTC) sales and enhanced brand image.The company’s commitment to product line refinement and a strong focus on international market expansion have enabled it to outperform both the broader Consu ...

Investors might want to bet on Under Armour (UAA) , as it has been recently upgraded to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.The powe ...