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Under Armour’s Q3 Will Only Highlight Brand’s Challenges, Says Analyst

Confidence in the Under Armour brand continues to wane on Wall Street.
As the Baltimore-based firm readies its third-quarter earnings release, several analysts are calling for lackluster results citing weak footwear sales, poor product distribution and slow-churning efforts to reinvigorate the label.
“From a product perspective, we have not seen any promising launches outside of the HOVR and The Rock collection, both of which lack the scale to make a material contribution and have only had colorway enhancements this year,” Canaccord Genuity Inc. analyst Camilo Lyon wrote today, reiterating a sell-rating on the stock. “More importantly, our discussions with industry contacts indicate there is little excitement around the product pipeline next year as well.”
Lyon said he also fears Under Armour’s representation at its major retail partners will decelerate into 2019 while “heavy” off-price sales could disrupt the brand’s pricing architecture over the next few quarters.
Similarly, Susquehanna Financial LLLP analyst Sam Poser said Under Armour’s distribution decisions are likely to “continue to undermine the brand,” as it’s one burgeoning footwear business decelerates and apparel strength becomes offset by promotional activity — all serving to hurt the firm’s outlook.
“We continue to contend that elevated inventory levels few compelling new product offerings and inadequate merchandise

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Via:: http://footwearnews.com/2018/business/earnings/under-armour-uaa-stock-rating-q3-earnings-2018-1202700428/