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Shares of Under Armour (UAA) were sinking over 4% during afternoon trading on Thursday following a cautionary note from Susquehanna.

Susquehanna analyst Sam Poser argues that while sales of the company's recently released Curry 4 basketball shoes have been good, they are "not good enough."

Poser contends that "incremental sales" at Kohl's (KSS) , DSW (DSW) and Famous Footwear are not robust enough to offset the lost sales from the likes of Sports Authority, as larger retailers like Dick's (DKS) plan down Under Armour products because of poor product segmentation.

"SportScanInfo (SSI) data indicates that ~34% of the UAA apparel styles carried in the moderate channel made up ~84% of the sales mid-March through May," he noted. "We recognize the aforementioned ratio is not unusual. However, the 34% of the styles that make up 84% of the business are carried in the athletic channel (Not Segmented)."

Retailers will begin to planning down their Under Armour business because they "do not want to get caught in a promotional free-for-all which is likely to occur when retailers such as Kohl's start discounting," he added.

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