Market Overview

How Under Armour Gets To $10 Billion In Sales By 2025

Share:
How Under Armour Gets To $10 Billion In Sales By 2025

Under Armour Inc (NYSE: UAA) was once one of the market's growth darlings, but the stock has taken a terrible turn over the past few years. On Thursday, Cowen analyst John Kernan laid out his five-step plan for Under Armour to win back Wall Street’s heart and reach $10 billion in annual revenue by 2025.

Under Armour’s international business and its footwear segment will be the keys to growing its cash flow, the analyst said (see Kernan's track record here).

Under Armour’s biggest uphill battle may be regaining customer and investor trust after dropping the ball in the past couple of years. Kernan proposes the following five steps the company can take to shift opinion:

  • Focus on higher-quality North American sales and improving return on invested capital, which is currently the lowest among its peer group.
  • Focus on merchandising speed and streamlining the supply chain.
  • Be more strategic with Curry merchandise rather than flooding the market and focus on premium franchises, such as Threadborne.
  • Take a strategic and unique approach to the women’s and lifestyle segments.
  • Make digital sales the centerpiece of global expansion efforts.

Under Armour’s future may hinge on its ability to increase its international market share. Rivals Nike Inc (NYSE: NKE) and adidas AG (ADR) (OTC: ADDYY) each generate roughly $18 billion in international sales per year versus $1.2 billion for Under Armour.

Even with the roadmap for success, Kernan said it’s too early to get bullish on Under Armour. Cowen maintains a Market Perform and $18 price target for Under Armour.

Related Links:

J C Penney Jumps To The Top Of The Short Seller List

Kevin Plank Opens Up About Nike, Under Armour's Underdog Role

Photo courtesy of Under Armour. 

Latest Ratings for UAA

DateFirmActionFromTo
Sep 2019MaintainsNeutral
Sep 2019MaintainsNeutral
Sep 2019UpgradesUnderperformMarket Perform

View More Analyst Ratings for UAA
View the Latest Analyst Ratings

Posted-In: Cowen John KernanAnalyst Color Price Target Reiteration Analyst Ratings Best of Benzinga

 

Related Articles (NKE + ADDYY)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
NVDACascendMaintains220.0
ADBECleveland ResearchInitiates Coverage On283.0
IMOCiBCUpgrades
RETAJefferiesMaintains254.0
SNAPAreteUpgrades
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

Why Netflix Will Be A $300 Billion Company By 2030

Valeant Pharma: Street Not Pleased With Future Financing Plans