Barclays Downgrades Under Armour to Underweight
Barclays downgraded Under Armour to underweight. The analysts cited three reasons for the downgrade: intensifying competition in athletic apparel and footwear, with the company continuing to lose market share; the brand’s lack of pricing power, which makes it difficult to offset pressure from higher tariffs and raw-material costs; and lengthy product-development cycles, which are weighing on the pace of the business recovery. Barclays said institutions favor brands with stronger pricing power that are in earlier stages of growth, and specifically named [name not provided in the source], Dick’s Sporting Goods and Deckers Outdoor. A photo caption in the source identifies Under Armour shoes displayed at a Dick’s Sporting Goods store in Petaluma, California, on May 16, 2024.
The analysts cited three reasons for the downgrade: intensifying competition in athletic apparel and footwear, with the company continuing to lose market share; the brand’s lack of pricing power, which makes it difficult to offset pressure from higher tariffs and raw-material costs; and lengthy product-development cycles, which are weighing on the pace of the business recovery.
Barclays said institutions favor brands with stronger pricing power that are in earlier stages of growth, and specifically named [name not provided in the source], Dick’s Sporting Goods and Deckers Outdoor.
A photo caption in the source identifies Under Armour shoes displayed at a Dick’s Sporting Goods store in Petaluma, California, on May 16, 2024.