Under Armour(UA) Seeking Alpha·2024-09-12 10:30Core Viewpoint - Under Armour's stock has shown volatility, with significant movements following news releases, particularly related to the return of founder Kevin Plank and the company's financial updates [1][2]. Group 1: Leadership and Strategy - The return of Kevin Plank as founder is seen as a pivotal moment for Under Armour, potentially driving innovation and a clearer vision for the company [2]. - Historical data suggests that companies led by founders tend to perform better in terms of innovation and financial results, with founder CEOs showing 3.1 times better performance over a 15-year period [2]. Group 2: Financial Performance and Market Reaction - Under Armour announced higher FY25 restructuring charges of 160 million, which negatively impacted stock performance despite only a slight increase in operating loss expectations to 240 million [3]. - The adjusted EPS target was updated to 0.22, aligning with original estimates, indicating that the company is meeting prior expectations despite the restructuring news [3]. Group 3: Market Position and Valuation - Under Armour's stock trades at a significant discount compared to competitors like Lululemon and Nike, suggesting potential upside if the brand can regain its strength [4][6]. - The company has improved its gross margin to 47.5% by shifting towards premium pricing, which could enhance its valuation multiple [5]. Group 4: Future Outlook - The hiring of Eric Liedtke is expected to boost brand value, leveraging his experience in brand strategy and sustainable products [3]. - Investors are encouraged to view any stock weakness as a buying opportunity, with the potential for a turnaround under Plank's leadership to yield substantial returns [7].