Under Armour’s stock price dropped to around $20/share from $50/share in 2015, as changes in consumers’ preference in part caused the tepid sales in North America.
The pandemic has encouraged people to exercise more, possibly leading to more sporting goods purchases. However, we have not yet seen any breakthrough strong enough to challenge other players’ dominance.
DTC distribution channels expansion, in addition to tightened inventory management, has improved margins. Lower Capex, too, contributed to the better free cash flows.
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