- Reuters/Steve Marcus
- Under Armour is falling again, this time after two Wall Street analysts estimated that the sportswear brand has been losing ground at Dick’s Sporting Goods, one of its largest distributors.
- The losses come just days after a massive security breach of the company’s popular MyFitnessPal app.
- You can track Under Armour’s stock price in real-time here>>
Shares of Under Armour fell as much as 5% in early trading Monday as two Wall Street analysts warned the brand’s falling sales could impact Dick’s Sporting Goods’ bottom line – and subsequently be replaced with private brands.
Morgan Stanley’s Simeon Gutman and Credit Suisse’s Seth Sigman wrote in separate notes Monday that Under Armour sales have fallen to less than 10% of Dick’s total sales, from 12% last year.
“While these national brands are still very important to DKS, the company does have big plans for private brands, expecting them to grow to $2bn in a relatively short period, equating to ~20% of sales,” Credit Suisse’s Sigman said in a note to clients.
Morgan Stanley’s Gutman estimates Under Armour sales at Dick’s fell between 11 and 17% in 2017.
The fresh slump for Under Armour comes just two days after the company said its popular app, MyFitnessPal, had been hacked by an “unauthorized party.” Under Armour said the breach included information like usernames and email addresses for 150 million users, but not payment details.
Wall Street has had a bearish outlook for the stock for a while, with just seven of the 35 analysts polled by Bloomberg having a buy rating for the stock. Their average price target is $14.56 – 10% below where the stock closed Friday.
Shares of Under Armour are up 6.6% so far in 2018. The company is expected to report earnings on April 26.
- Markets Insider