Under Armour: Turnaround More Credible But I Am Not Ready To Buy

About: Under Armour, Inc. (UA), UAA, Includes: NKE
by: Kenra Investors
This article is exclusive for subscribers.
Kenra Investors
Value, long-term horizon, research analyst, contrarian

After profiting from shorting the bubble in 2015-2016, I have kept Under Armour on my watchlist.

The questionable expansion strategy led to many fundamental problems, including poor cash flows, excessive inventories and deteriorating margins.

I analyze the company's developments on several fronts to understand whether the hope of a turnaround is more credible than before.

Source: underarmour.com

Under Armour (UA) (UAA) has been a typical example of a company that ends up being a victim of its own success. After the fad of 2014-2016, Under Armour’s