Earnings Next Tuesday (10/25) expect good numbers
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Posted 1983 days ago on 10/19/11
UA will go UP
$85.00 on 11/19/11
$18.30 (-75.11% from time of market call)
Under Armour has been making innovative products for the past decade. They have moved from a few products to a full line. I own a lot of their products and stay up to date with what they offer. This year I have noticed a lot more products rolling off their line from clothing to accessories. For the past 3 quarters they have out performed the previous years sales by 40%, 60% and 70% (approx). Next Tuesday I expect that the percent will be about 85% more than last year. Why? This is the time of year when parents are buying their kids new sport equipment. The start of the school year called for new clothes and UA was there providing new clothing lines (Charged Cotton) and many graphic tees. Their new foot line has been advertising hard and I expect their growth to be the same. One thing I have noticed in the past is that UA is doing more sales from warehouse to consumer (B2C). Why is this? They offer way more products online than in any store that carries their products. Also, whenever UA has free shipping more people tend to buy new things (I surely do!) For the month of September (end of the 3rd quarter), UA was offering free shipping almost every weekend. The last time they did this was back during Christmas time. I think that their B2C sales are going to up again this quarter too.
I am putting a price target of $85 in the next month leading up to Black Friday, and in the next 3 months I have a target of $90.