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Takeaway: UA could not afford even the slightest blemish this quarter, unfortunately.

Under Armour: Brand Heat Has A Price | $UA - ua kevin plank

Here are some key takeaways from a research note that was originally sent to subscribers on April 24, 2014 by Hedgeye Retail sector head Brian McGough. Follow McGough on Twitter @HedgeyeRetail.

Key Takeaways

  • Not the quarter a 50-times multiple needed. We remain confident that this company will double – at least – over 5-years. But will continue to spend heavily to achieve that goal.
  • One thing we’ve got to give UA regardless of margin trajectory – this management team is as focused as any we know.
  • Overall, it was a great quarter for Under Armour when viewed in isolation.  Unfortunately, the market does not view things in isolation – nor do we.
  • People obviously did not love UA’s guidance for the upcoming year. UA beat by $43mm in revenue, but only took up full-year guidance by $40mm.
  • There was something about CEO and founder Kevin Plank today on the call that seemed exceptionally mature, seasoned, focused, and not only a great Brand ambassador (which he’s always been) but a flat-out solid leader for Under Armour.

Under Armour: Brand Heat Has A Price | $UA - UA sigma