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re: Under Armour - Whats going on?

Posted on 1/12/16 at 1:21 pm to
Posted by Delacroix
Member since Oct 2008
3985 posts
Posted on 1/12/16 at 1:21 pm to
We had a thread on this in early November LINK

Like I said in that thread, I dont see potential for UA. There is too much competition and their products are too expensive.
Posted by barry
Location, Location, Location
Member since Aug 2006
50342 posts
Posted on 1/12/16 at 1:28 pm to
quote:

I dont see potential for UA. There is too much competition and their products are too expensive.



Potential? They are already the #3 sports brand company in the US. They have had ridiculous growth for the last 10 years. The "too expensive" thing is just nonsense.
This post was edited on 1/12/16 at 1:29 pm
Posted by Delacroix
Member since Oct 2008
3985 posts
Posted on 1/12/16 at 2:02 pm to
quote:


Potential? They are already the #3 sports brand company in the US.

The potential for future growth, the UA fad is dieing

quote:

The "too expensive" thing is just nonsense.


Why is it nonsense? If something is overpriced for too long competition will catch up to it by selling similar quality products at a lower price. And that's what happening right now.

LINK
Posted by GenesChin
The Promise Land
Member since Feb 2012
37706 posts
Posted on 1/12/16 at 2:28 pm to
quote:


Like I said in that thread, I dont see potential for UA.


You don't see any potential for the athletic brand that is just beginning to branch into shoes, sports gear like basketball/footballs etc and women's attire?

quote:

There is too much competition and their products are too expensive.


Nike/Adidas just has a wider quality selection than Under Armour. Under Armour doesn't compete in the bargain category
Posted by GenesChin
The Promise Land
Member since Feb 2012
37706 posts
Posted on 1/12/16 at 2:29 pm to
I'm not saying I like UA's stock future, just that Under Armour appears to be here to stay.
Posted by Delacroix
Member since Oct 2008
3985 posts
Posted on 1/12/16 at 2:37 pm to
Maybe they are here to stay, but I dont see them taking up much more of the market share than they have now. I also don't think they will be very successful in the long term with their new ventures.

Maybe I'm completely wrong, but I will not be buying UA for the long term.
Posted by JamalSanders
On a boat
Member since Jul 2015
12135 posts
Posted on 1/12/16 at 5:28 pm to
quote:

Maybe they are here to stay, but I dont see them taking up much more of the market share than they have now. I also don't think they will be very successful in the long term with their new ventures.

Maybe I'm completely wrong, but I will not be buying UA for the long term.


I think the exact opposite of you. But I'm not putting my entire retirement in anything.
Posted by LSU1018
Baton Rouge
Member since Feb 2007
7220 posts
Posted on 1/12/16 at 6:38 pm to
I feel really good about under armour long term. I feel like I see more and more people wearing their stuff everyday. I also love Jordan Spieth!
Posted by rintintin
Life is Life
Member since Nov 2008
16178 posts
Posted on 1/12/16 at 9:39 pm to
quote:

the UA fad is dieing 



I won't comment on the stock, but this couldn't be further from the truth. As someone who is involved in sports and fitness on a daily basis, I see more and more of UA everyday.

Young kids especially, they wear nothing but UA, and they're the future.
Posted by Delacroix
Member since Oct 2008
3985 posts
Posted on 1/13/16 at 7:34 am to
quote:

Young kids especially, they wear nothing but UA, and they're the future


Do you still wear the same brands as you did when you were a young child?

If that was the case I'd still be wearing Starter jackets and Reeboks. Nike, however, is the exception to this. They are one athletic brand that has stood the test of time, and I dont see UA ever reaching that level. Just my $0.02
This post was edited on 1/13/16 at 7:42 am
Posted by GenesChin
The Promise Land
Member since Feb 2012
37706 posts
Posted on 1/13/16 at 8:20 am to
quote:

Nike, however, is the exception to this. They are one athletic brand that has stood the test of time



You must be at least 40. In my generation and young (sub30s), Under Armour is the only thing we buy.

Pick up BBall games, gym, friends kids, all they wear is Under Armour.
Posted by Delacroix
Member since Oct 2008
3985 posts
Posted on 1/13/16 at 8:27 am to
quote:


You must be at least 40. In my generation and young (sub30s), Under Armour is the only thing we buy


No, I'm the same generation as you. I'm also a pretty active guy (weight training/interval training 6 days a week). I'm not denying UA isn't one of the largest sports apparel companies. My point in this thread is that I don't see this trend growing or sustaining.

I hope I'm wrong and you all make money. This is just one stock I don't feel comfortable with
Posted by JamalSanders
On a boat
Member since Jul 2015
12135 posts
Posted on 1/13/16 at 8:27 am to
quote:

Starter jackets


Just gonna throw out that I have no clue what that is.

UA is slowly choking out every other apparel maker in baseball. Plus as has been said before, 10 y.o. wear nothing but UA.
Posted by rintintin
Life is Life
Member since Nov 2008
16178 posts
Posted on 1/13/16 at 8:33 am to
quote:

Do you still wear the same brands as you did when you were a young child? 



Athletic wear? Sure. Nike, Adidas, Reebok. I have all of the above, but probably more UA than any.

I'm even starting to see *gasp* more old people wearing it. And by old I mean senior citizens.

Nike is still the shoe dominator, which is actually potentially good for UA, because that's basically an untapped market for them.
Posted by LSU1018
Baton Rouge
Member since Feb 2007
7220 posts
Posted on 1/13/16 at 9:03 am to
As the other poster said, it's amazing to me how many senior citizens are wearing under armour now. I actually like the look of their shoes but they are not near as plentiful as the major shoe brands. I don't think they will ever pass Nike but I definitely could see them on par with them.
Posted by LSUShock
Kansas
Member since Jun 2014
4915 posts
Posted on 1/13/16 at 9:47 am to
I don't think UA will ever be able to compete with Nike or Adidas in the shoe space, but they are right at the top in regards to apparel. Go to any golf tournament and you will be amazed by the number of people who are wearing UA polos. It's 10:1 UA to Nike.
Posted by barry
Location, Location, Location
Member since Aug 2006
50342 posts
Posted on 1/13/16 at 11:00 am to
quote:

Just gonna throw out that I have no clue what that is.


Posted by barry
Location, Location, Location
Member since Aug 2006
50342 posts
Posted on 1/13/16 at 11:11 am to
quote:

Why is it nonsense? If something is overpriced for too long competition will catch up to it by selling similar quality products at a lower price. And that's what happening right now.


Did you read the article?

They said that UA shouldn't be lowering their prices because they have a premium brand right now. So them being over priced has nothing to do with it. You may think they are over priced but their sales disagree.

Also that works in more commodity type business. If you have the brand strength you can charge more. You see Apple lowering their prices because of competition?

quote:

The potential for future growth, the UA fad is dieing


Fad? They have the best basketball player and possibly the best golfer in the world signed to long term deals and both are under 28 years old.


I agree that their growth will slow down from its insane pace since its inception, but UA is not a fad.
This post was edited on 1/13/16 at 11:13 am
Posted by oR33Do
Tuscaloosa
Member since Oct 2012
13561 posts
Posted on 1/14/16 at 2:03 pm to
quote:

The problem is that $96 will only buy you one shirt.


Two if you find them on sale at academy or Amazon.

I have 7 cold Gear long sleeve shirts and I love them. I can usually find them in late spring/fall for under $50 and honestly I am fine with paying that.
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