, Columnist
Still Believe in That Under Armour Turnaround?
The athletic apparel maker has yet to find its footing in its key market.
Under Armour isn’t quite the Comeback Kid yet.
Photographer: Justin Sullivan/Getty Images North AmericaThis article is for subscribers only.
Wall Street has rewarded Under Armour Inc. this year, sending its stock up more than 55% through Monday’s close as the company made progress toward putting a bad chapter behind it. Tuesday’s earnings report suggests that investors got ahead of themselves.
The athletic-apparel giant improved on some key measures. In particular, gross margin expanded to 46.5%, in part thanks to initiatives aimed at bolstering its supply chain. And inventory fell 26% to $966 million, a major step toward clearing bloat that had been a serious problem for the company a year ago.