Under Armour stock slides as CFO warns of ‘cautious’ retail consumer in 2023
The Yahoo Finance Live team discusses the latest stock slide of Under Armour.
SEANA SMITH: Yeah.
JOSH SCHAFER: That's my play today, guys, with UnderArmour, who's had plenty of sales, but unfortunately, I think they might have had a couple of too many sales. So let's take a look at UnderArmour. You can see shares down about 8%, and that's really one of their worst days in a while here. And the company reported third quarter earnings that beat the Street, but what happened is really on the call. So the stock was up before the call, up almost 7% this morning. Then the call happens.
And the CFO said earlier on the call that basically what happened here is that promotions are going to extend longer than they anticipated. So promotions are going to go further than they initially thought. They're going to go almost to the end of the year. And they highlighted that the consumer, they think, is weaker than people thought retailwide, so across the sector. Again, we were just talking about Capri. We saw an UnderArmour. I think we're seeing it play out, but it's interesting to start hearing that commentary now, too.
DAVE BRIGGS: I think it's an UnderArmour problem, and it's Stephanie Linnartz's problem now. Their new CEO comes aboard after 25 years at Marriott. And she's got a lot of problems to solve there at Under Armour. And Kevin Plank, the founder, saying on the call, we look forward to her prioritizing top and bottom line growth for Under Armour. Stephanie Linnartz has her hands full. They're going to open a pop-up Tuesday in Manhattan, something called Slip Speed, a new shoe that actually converts into a slide from a training shoe. Big bet, one she didn't make.
JOSH SCHAFER: Yeah, I'll be interested to try those on, Dave. I don't know how--
SEANA SMITH: I'm not sold on that.
JOSH SCHAFER: --they're going to pan out. Yeah.
SEANA SMITH: I'm not sold. I just think Under Armour, if you take a step back, they've lost their cool factor. Not nearly as many people are wearing them as opposed to, what, 10, 15 years ago. They need to be a little bit more innovative with their products, I think, to really kind of boost their business. And--
DAVE BRIGGS: Nike took it, man.
JOSH SCHAFER: What happened to the Under Armour brand that used to be the turtleneck, right? That was called an Under Armour to stay warm. And now you have a Nike one. And you don't even wear the Under Armour one with that little turtleneck.
SEANA SMITH: I still wear mine when I run outside, yeah. They keep it nice and warm.
DAVE BRIGGS: Not the full turtle.
JOSH SCHAFER: You won't see any of those on Sunday at the Super Bowl, Dave.
DAVE BRIGGS: No, you will not, my friend.