Under Armour: Pursuing Anything, But Not Everything

Komp stated in a research report following the meeting that he believes Molloy will bring a "disciplined approach to prioritizing the highest-impact growth initiatives" while simultaneously playing a role in optimizing the company's supply chain and infrastructure.

Specifically, Molloy will pursue an "anything but not everything" strategy by bringing his process-led approach to prioritizing the many whitespace opportunities across various geographies, channels and categories.

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Komp continued that Under Armour's overall focus right now is growing revenue but margin growth is a "second-hand consideration." Long-term shareholders should approve of this notion, as the company is still in the early stages of a global brand adoption.

Komp also pointed out that he toured the new 35,000 square foot UA Lighthouse manufacturing center, which "could prove disruptive" given the facility's new technologies that can enhance the design process.

Komp also stated that Under Armour is well positioned to deliver on its bottom half of 2016 expectations (21 percent revenue growth) and over the longer term, the company's 2018 targets ($7.5 billion in revenue and an operating profit of $800 million) are "intact." After 2018, the company's cash flow and ROIC metrics "should improve."

Shares remain Outperform rated with an unchanged $55 price target.

At time of writing, Under Armour was down 2.17 percent on the day at $38.41.

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