$27.10
1.17 (+4.51%)
Under Armour, Inc. (UA)
CAPS Rating:
The Company's principal business activity is the design, development, marketing and distribution of technologically advanced, branded performance products for men, women and youth.
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Under Armour is pursuing performance training footwear and is heavily weighting the first half of the year with advertising the line. Considering that much of UA's growth can be attributed to advertising, I doubt they will limit brand exposure to their ad spending cap in the second half of the year.
Considering that Addidas and Nike are very strong players in the performance footwear market, I think UA's move away from its core business is risky at best. UA's ad campaign will have to be nothing less than stellar to gain a foothold in the above mentioned market. I have very strong doubts.