Deutsche Bank Offers 2 Reasons Why Under Armour's Earnings Are Good For Dicks Sporting Goods

Deutsche Bank issued a report discussing why Under Armour Inc's UA stellar earnings report is good news for Dicks Sporting Goods Inc DKS.

1. The sporting goods industry had a good holiday season: Under Armour's revenue increase by 31.1 percent, which is greater than the third-quarter revenue growth of 25.3 percent. This points to holiday sales having an impact on demand for sporting goods.
2. Concerns of direct product selling alleviated: Under Armour's direct-to-customer growth slowed to 26.7 percent from 35.0 percent in the third quarter. Dicks Sporting Goods remains Under Armour's most important customer and thus should not be affected by any trend of Under Armour bypassing large retail stores in selling their products.

Shares of Under Armour recently traded at $72.58, down 2 percent.

Shares of Dicks Sporting Goods traded at $52.52, down 1.74 percent.