Under Armour expected to slower profit growthThursday, 19 April 2012
In Wall Street, Under Armour (UA) is expected to report slowing
profit and sales growth Friday morning as investors wonder if the athletic apparel maker's cotton line will continue to separate it from a growing list of competitors, advanced Investor´s Business Daily (IBD).
“Under Armour earnings likely rose 4% in the first quarter to 24 cents a share, analysts forecast. That would end nine consecutive quarters of double- or triple-digit profit growth. Sales growth should rise nearly 22% to $379.8 million, though that would be the smallest advance in more than a year,” said IBD.
UA´s competitor Lululemon Athletica (LULU), is finding support at its 10-week moving average. Many analysts remain upbeat about Lululemon's prospects. Last month, UBS initiated coverage with a price target of 91. "We believe it is still underappreciated how early an inning of growth Lulu is still in," the bank wrote in a research note. "We believe Lulu's entrenched competitive advantages (product, grass-roots marketing, customer service and store experience, and management) support the on-going strength of the brand and business model, keeping Lulu insulated from increasing competition," UBS analysis team added. In the same vein, Credit Suisse has said it is "intrigued" by Lululemon's growth potential in markets beyond the U.S. and Canada.
Finally, market stresses how well Ralph Lauren is positioned in terms of brand visibility with its upcoming London Olympics uniforms for team USA.