Monday Golden State Warriors Finals' MVP Kevin Durant said "nobody wants to play" basketball in Under Armour (UA) - Get Under Armour, Inc. Class C Report (UAA) - Get Under Armour, Inc. Class A Report shoes. Of course, Durant is sponsored by Nike (NKE) - Get NIKE, Inc. Class B Report , while his two-time MVP teammate Steph Curry is sponsored by Under Armour. When asked if he had talked to Curry about this notion, Durant said he didn't need to, everyone knows Nike is the preference.
Durant's comments are obviously not good for Under Armour stock, TheStreet's founder Jim Cramer, who also manages the Action Alerts PLUS charitable trust portfolio, said on CNBC's "Mad Dash" segment Tuesday. Shares are now down 4.3% this week.
"[Under Armour's] move into sneakers [has been] an unmitigated disaster because of Nike," he reasoned. So is Nike kicking Under Armour's butt?
While it hasn't been smooth sailing for Nike, Cramer reasoned, it's been really tough for Under Armour because of the notion that Nike is the go-to product. That said, Nike's high-end sneaker line, Jordan, has been struggling as well, he pointed out.
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"I think that this is the end of the expensive sneaker," Cramer went on to say. The move came so fast and so swiftly that no one was prepared for it.
Finish Line (FL) - Get Foot Locker, Inc. Report shares cratered this week as it told investors it's struggling to adapt to the new landscape. The move shouldn't come as much of a surprise as Foot Locker (FL) - Get Foot Locker, Inc. Report also plunged after recognizing issues as well.
"I think everyone's helpless to it," Cramer said of the swift change in consumer tastes.
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