AP

Shares of Under Armour Inc. (UAA - Get Report)  fell 0.1% to $20.48 Tuesday even after Goldman Sachs Group Inc. raised its rating on the apparel company to conviction buy from neutral. 

Analyst Alexandra Walvis said in an investors' note that she was "constructive on the environment for consumer spending for 2019, driven by personal tax reform benefits, energy market tailwinds, and a healthy labor market."

"For Apparel & Accessories," she wrote, "we expect these tailwinds to buoy middle and lower income consumers, while the outlook for high end and tourist spending is more muted."

Walvis also said she believes apparel companies' ability to respond to rapidly shifting consumer preferences will be key to driving fundamental and stock performance.

Among brands, she wrote, "we see the trend towards athletic and outdoor attire as enduring, while among retailers we expect continued migration of spending dollars out of the mall towards e-commerce and compelling off-mall formats."

Regarding Under Armour, Walvis said she sees "inflecting margins on the horizon as quality of sale initiatives take hold, with longer-term growth on the horizon from innovation, international and footwear."

Last month, the Baltimore-based company laid out its five-year strategic growth plan through 2023 during its annual investors day.

Under Armour said it expected revenue to return to low double-digit growth by 2023 with gross margins expected to increase between 275 and 300 basis points by that year. The company expects revenue to be flat in its home territory, though foreign markets will provide the expected 3% to 4% revenue gain the company expects in 2019.