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As a result, this recent bout of optimism for UAA stock could have bearish consequences in the wake of Thursdays first-quarter earnings report. Why UAA Stock Is Doomed (For Now) The fuel driving the distribution-deal narrative is that UAA should be able to once again expand its market share after rolling out shoes and athletic wear to more retail locations. But Under Armour has been in Kohls stores since February, and we saw how badly guidance from the companys prior trip to the earnings confessional played out. 10 Dividend Stocks That Will Deliver Double-Digit Returns Every Year Under Armour will hit DSW stores in time for the back-to-school rush, but Under Armour will face the same challenges there as it did in Kohls, namely, Nike and Adidas have already established shelf space and market share at these locations. Whats more, Nike is apparently back with a vengeance in terms of athletic styling and pricing competition, and Adidas remains the retro styling king heading into the summer season. That doesnt leave much room for a floundering Under Armour, which is still trying to recover market share after tying itself too closely to the athleisure trend. In fact, Wall Streets earnings expectations for Under Armour have been in freefall for the past two months. At the beginning of the year, the consensus was looking for first-quarter earnings of 4 cents per share, flat with year-ago results (not a good starting point). But those expectations have come down steadily since, and expectations now rest at a loss of 4 cents per share, with revenue expected to rise a mere 5.9% to $1.11 billion. Whats more, analysts are showing considerable doubts when it comes to UAA stocks prospects. According to Oppenheimer: We think theres a good chance company guides down 2Q17 sales, back-half loading 17; assuming new distribution (KSS & DSW) contributes $130 million$150 million in 17 sales implies core business up HSD to hit consensus. Currently, Oppenheimer is among the 25 brokerage firms currently rating UAA stock a hold or worse with an underperform rating.
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