We reported in August how Under Armour dumped a couple of hunters, and in return, hunters dumped Under Armour. Today, ZeroHedge reports that Under Armour’s stock value has sunk to its lowest level in three years. Sales have slowed dramatically – to their lowest since 2005. This caused them to miss their quarterly earnings estimates by 11%. In short, all signs point to them reaping the whirlwind of a bad outcome as a result.
Considering Under Armour stock was at $120 per share not even three years ago, today’s $21 price shows quite a decline collapse. Really, UA’s crash should surprise no one who pays attention. The Baltimore-based company purported to support hunters and hunting, yet at the first hint of social justice warrior anti-hunting outrage, they terminated the centerpiece of their first women’s hunting campaign.
As we wrote back in August:
Did the Baltimore-based Under Armour just Zumbo itself?
Time will tell, but following a change.org petition, Under Armour dumped their sponsored huntress, Sarah Bowmar mere days after her husband legally harvested a bear in Canada using a spear. Now, the people of the hunting world are pushing back, starting their own boycott of Under Armour and burning the UA products they already own. Here’s how it all went down . . .
Yes, UA sought to capitalize on the increasing women’s athletic apparel market. However, in their rush to appease the anti-hunting SJWs, Under Armour managed to anger sportsmen and gun owners across the nation.
But wait, there’s more!
The company’s long-term prospects continue to look grim. Their outlook has been cut and the CFO has left (allegedly for personal reasons). All of this bad news left the company’s stock down about 25% today alone. In fact, things have looked grim for some time.
Here’s the upshot from ZeroHedge:
Under Armor Crashes On Triple Whammy: Earnings Miss, Outlook Cut, CFO Out
Under Armor shares are down almost 30% in the pre-open, trading at their lowest in 3 years after a triple whammy disaster of an earnings announcement.
Top and Bottom Line miss:
- *UNDER ARMOUR 4Q NET REV. $1.31B, EST. $1.41B
- *UNDER ARMOUR 4Q EPS 23C, EST. 25C
Outlook slashed:
As Bloomberg notes, Under Amour — which has doubled its sales about every three years — is now having a hard time maintaining that rapid growth.Sales this year will increase as much as 12 percent to nearly $5.4 billion, the Baltimore-based company said in a statement Tuesday. That trailed analysts’ $6.05 billion average estimate and would be Under Armour’s smallest annual gain since it went public in 2005.
“Numerous challenges and disruptions in North American retail tempered our fourth quarter results,” UAA CEO Kevin Plank said in release.
And C-Suite shake-up:
CFO Chip Molloy will leave for personal reasons; SVP, Corporate Finance David Bergman will serve as acting CFOThe result… almost 30% collapse…
Companies are in business to make money. When gun owners and hunters stick together, we get proven results. Obviously, social justice warrior pledges to buy more Under Armour apparel proved meaningless. Pledges from hunters and the People of the Gun, on the other hand, not to buy their stuff have a real impact. Let’s face it: Under Armour chose the online petition signed by 4,000 special snowflakes over tens of millions of productive Americans.
Under Armour chose poorly. Let them continue to reap the whirlwind.
