let me tell you here’s why Under Armour shoes stock is a slam dunk

It’s pretty much a foregone conclusion that the spokesperson for under armour shoes Steph Curry and the Golden State Warriors are going to demolish the competition as this year’s NBA season winds down. The only real question is whether they’ll keep the pedal down and set a new single-season record for the most wins in NBA history.

However, as Dub Nation roots on their team, the board room at under armour  Inc. UA, -1.77%   also has a lot to cheer about — namely, the fact that the freakishly good Curry is wearing their brand on his feet in every game.

under armour shoes
under armour shoes

The story of how athletics powerhouse Nike Inc. NKE, +0.12%   lost out on Curry — recently chronicled by ESPN — is amazing, complete with mispronounced names and mislabeled PowerPoint slides. But more importantly for investors, the win by Under Armour is indicative of a company that’s committed to going toe-to-toe against Nike with its image.

Not just with Curry, either, but with NFL playmakers Cam Newton and Tom Brady, young golfing phenom Jordan Spieth and iconoclastic dancer Misty Copeland on its roster.

When you look at this branding blitz coupled with key financial metrics that are pointed significantly higher, the future looks bright for this apparel and footwear powerhouse.

Here’s why under armour outlet stock is a slam dunk regardless of any market volatility or consumer spending trouble:

  1. Strong earnings: Under Armour soared by double-digits after its January earnings report, and it’s not hard to see why. The company beat expectations on both its fourth-quarter profit and revenue and saw significant year-over-year growth. Specifically, earnings spiked 20% to 48 cents a share in the fourth quarter from 40 cents a year ago, and revenue increased 30% to $1.17 billion from $895.2 million last year. Those are simply spectacular growth numbers.
  2. Improving technicals: under armour store stock had a rough ending to 2015, with shares slumping more than 30% from their October highs to their January lows. But the tale of the tape is encouraging lately, with earnings fueling a sharp reversal in January after that dip. And since that burst, Under Armour has held firm, with its 20-day moving average crossing over its 50-day average in February and heading steadily higher. Resistance around $85 a share has been persistent in March, but a lack of breakdown thus far coupled with a virtuous news cycle seems to make a move higher likely in the coming weeks — especially if first-quarter earnings in April look good.

Why Nike Lost Stephen Curry to Under Armour

Nike’s basketball roster is stocked with heavy hitters including Kevin Durant, LeBron James, and most famously, Michael Jordan.

But today, analysts say the signature basketball shoes tied to NBA star Stephen Curry outsell them all with the exception of Jordan. And Nike could have been the benefactor–if it hadn’t famously lost the Curry contract to rival Under Armour ESPN has a fascinating scoop about what led Curry to leave the world’s largest athletic gear maker for a hot brand that is on the rise, but still far smaller in terms of sales, marketing, and product development.

It all went awry at a pitch meeting where Nike was trying to get Curry to re-sign with the brand. ESPN, quoting Curry’s father Dell, reports that an executive misstated Stephen Curry’s under armour sydney first name. Then, a PowerPoint presentation still featured Durant’s name–likely from older materials that were being reused for the Curry talks.”I stopped paying attention after that,” Dell told ESPN. It became evident to him that his son would never reach the top tier at Nike.

At Under Armour, Curry is the brand’s marquee name, rather than in the shadows of Nike’s heavy hitters like Michael Jordan and LeBron James. His involvement with Under Armour helped the athletic gear maker report a big jump in footwear sales last year–. Curry is so important to Under Armour that he was featured prominently at the company’s investor presentation last fall, when it was also announced that he agreed to a contract extension with Under Armour through 2024.

Analysts say the Curry shoes have been selling very well at retail stores, along with the larger Jordan brand. Meanwhile, Nike’s LeBron and Durant franchises have reportedly seen some softness, according to The NPD Group sports industry analyst Matt Powell.


“We have the right athlete in Stephen Curry, under armour melbourne” Under Armour CEO Kevin Plank told analysts during a presentation earlier this year. “He is, without question, the number one basketball player on the planet today.”

From a product standpoint, Under Armour is still only just beginning when it comes to building a brand on Curry’s name. The first signature basketball shoe, the $120 Curry One, and apparel debuted in February 2015. The Curry Two went global last October at a $130 price point.

Over that time period, under armour canberra said it learned a lot about how it can market and sell signature basketball products–a sliver of the athletic market where it has traditionally had little experience, especially compared to Nike. Under Armour said it feels “incredibly bullish” it can continue to raise prices on those highly coveted shoes over time.