After a Year of Rehab, Under Armour Is Poised For a Major Comeback
Throughout history, the sports world has produced some of the most dramatic comeback stories ever told. While this story doesn't involve an athlete improbably returning to glory from a devastating injury, it does examine the revival that's unfolding at athletic apparel maker Under Armour (NYSE: UA).
Like an up-and-coming sports star, Under Armour was a fan-favorite among growth investors when it steadily produced quarterly revenue increases of 20-30% in the 2014-2016 timeframe.
Just as Under Armour's rise made it a viable competitive threat to athletic footwear and apparel powerhouses like Nike and Adidas, the company lost its way and hit rock bottom in the early days of the pandemic.
Image Source: Motley Fool
Meanwhile, rival Nike ran up the score on the down-and-out company, capitalizing on rising enthusiasm for running, outdoor activities, and working out at home.
The divergence in top-line performance between the two companies has been striking, clearly pointing to significant market share gains for Nike over Under Armour. Excluding the most recent quarterly results for each company, Nike averaged a 1.2% year over year revenue decline over the past six quarters compared to a 10.5% drop for Under Armour.
Consequently, Under Armour's stock plummeted to multi-year lows last May as it fell further behind the competition.
Source Fool.com