Citigroup: Under Armour's Results, Guidance Changed Nothing For Us

Under Armour Inc UA shares plunged on Tuesday on back of mixed earnings and a lower than expected full-year earnings guidance.

Citigroup analyst Kate McShane was on CNBC to share her outlook on the company.

No Impact

"Nothing changed at all for us," McShane said. "When the stock trades at this type of valuation, it does take a lot in terms of beating expectations to move the stock, but fundamentally the brand is still strong, you're still seeing great growth in the top-line of the business."

Deceleration

McShane was asked about what she felt was the disappointing part in Under Armour’s result. She replied, "I guess if you really had to poke holes in it, apparel did decelerate from the fourth quarter. So, even though it was up 21 percent from a sequential basis that was up 30 percent last quarter, so it's only up 21 percent this quarter."

"It implies a deceleration, but they did get impacted by the West Coast port strikes and some weather, which probably took a couple of percentage points out of the top line," McShane concluded.

Related Link: Jordan Spieth-Induced Spike In Under Armour Fades After Earnings

Fitness + Technology

On Under Armour’s focus on integrating technology with fitness, McShane said, "If you look and see what, you know everything Nike has been able to do over the last couple of years with their app and their connected fitness, if you will, I mean, they have been working on this for years. So, the acquisitions that Under Armour has had to make in order to be competitive, we think are absolutely the right move."