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Case Analysis Of Under Armour

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Under Armour, Inc. is a multinational company headquartered in Baltimore, Maryland. It is a manufacturing company that specializes in casual wear, sports, and footwear (Armour, 2015). The company reported during its fourth quarter of the 2016 fiscal year a 12% increase in revenues which was a miss on the consensus by $100 million. Their earnings per share according to the fourth quarter of the year 2016 were $0.23 per share. This saw their stock price tank by 25%as at the close of 31st January 2017. For the fiscal year ended 2016, the company recorded a 22% sales increase as compared to that of 32%in 2014 and 29% in 2015. This is an indicator of a declined growth rate over the mentioned years. According to the company’s 2017 report, the decline has been attributed to a negative effect by various bankruptcies in the sports retailer market, an environment filled with so many promotions and lastly a holiday season that was a weak one compared to the other seasons. Since the company’s sales rely significantly on the United States market, the fact that some other sports companies like City Sports were liquidated had a considerable impact on UA’s sales when compared to some of its competitors like Adidas and Nike. The company’s poor results have also been attributed to its failure in the apparel business that recorded a sales growth of 7% as compared to that of 24% achieved back in 2014.
Under Armour had a $0.7 billion debt as at 30th of June 2015 that was used as a funding for
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