Under Armour (UA) Sinks On Nike's (NKE) Crummy Q3 Report
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Under Armour, Inc. (NYSE: UA) is sharing in Nike's pain today.
Nike produced a third quarter report that missed estimates on the top and bottom lines, while their future orders estimate of a 9% increase (excluding FX) failed to spur confidence. In the call, executives were adamant that price increases would be spread across the breadth of their offerings to combat rising oil and commodity prices.
Under Armour has long been nipping at the heels of Nike, being a leaner and fiercer competitor than most. News out of the Beaverton, Oregon, activewear giant is sure to have an effect on Under Armour moving forward, as many initially believed that diversification and sheer size would protect Nike from experiencing the pitfalls associated with rising input costs. Greater diversification among suppliers in several markets was expected to allow Nike to lock in the best prices, depending on the inflation/deflation experienced in different countries.
However, recent effects from weather and geopolitical tensions have contributed to worldwide price increases, which has trickled through the retailing market over the last several months.
Shares of Under Armour are 5.8% lower at midday.
Nike produced a third quarter report that missed estimates on the top and bottom lines, while their future orders estimate of a 9% increase (excluding FX) failed to spur confidence. In the call, executives were adamant that price increases would be spread across the breadth of their offerings to combat rising oil and commodity prices.
Under Armour has long been nipping at the heels of Nike, being a leaner and fiercer competitor than most. News out of the Beaverton, Oregon, activewear giant is sure to have an effect on Under Armour moving forward, as many initially believed that diversification and sheer size would protect Nike from experiencing the pitfalls associated with rising input costs. Greater diversification among suppliers in several markets was expected to allow Nike to lock in the best prices, depending on the inflation/deflation experienced in different countries.
However, recent effects from weather and geopolitical tensions have contributed to worldwide price increases, which has trickled through the retailing market over the last several months.
Shares of Under Armour are 5.8% lower at midday.
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