4 Products Under Armour Is Banking on to Reverse Its Latest Nasty Stock Rout

When your quarter sucks, how do you come back?

Under Armour, Inc. (UA) is counting on fresh products, new markets, the pixie dust of its celebrity athletes and a major restructuring for a rebound into growth after a weak second quarter revealed on Tuesday. The one-time high growth retailer saw revenue up a mere 9% to $1.1 billion and a net loss of $12 million.

The company's outlook also stunk. Net revenues are expected to grow 9% to 11% versus the previous expectation of 11% to 12%. Operating profits are seen in a range of $280 million to $300 million, excluding one-time items. Under Armour previously expected $320 million.

Shares plunged nearly 9%, to $18.28 in afternoon trading on Tuesday.
 
With said restructuring comes big expenses, including total estimated pretax restructuring and related charges of some $110 million to $130 million in fiscal 2017. 
 
"The company is starting to emphasize shareholder returns, which we appreciate," Macquarie Research wrote in a note on Tuesday. "However, we anticipate the top line will normalize in the single digits and EBIT margins in the mid-single digits for the foreseeable future."

Among the bright spots for the company are in Asia, including China and Korea.
 
Here is what Under Armour is banking on in coming months and years. 
 
 
 
 

Product and celebrity: golfer Jordan Spieth wearing new Threadborne material
Product and celebrity: golfer Jordan Spieth wearing new Threadborne material

Spieth is a man on the move. On July 23, the American won the British Open in a nail-biting ending.

Product: UA Icon
Product: UA Icon

This line has been issued in both men's and women's sizes. One way the company plans to transform its company is to push more strongly into the women's market.

Product: Curry 4
Product: Curry 4

The latest iteration of a sneaker honoring Golden State Warriors basketball player Stephen Curry.

Celebrity: actor Dwayne "The Rock" Johnson
Celebrity: actor Dwayne "The Rock" Johnson

The 6' 5" Dwayne Johnson, also a producer and former professional wrestler, is the public face of UA's Project Rock, which includes shirts, tights, hats and backpacks. New products are expected.

Contract: Major League Baseball
Contract: Major League Baseball

Come 2019, Under Armour uniforms will be worn by all players of the 30 Major League Baseball teams, and that's a 10-year contract for the athletic-wear company.

The company will be the exclusive provider of all on-field uniform components, including jerseys featuring Under Armour branding, and provide exclusive connected fitness offerings. It marks the first time Under Armour landed a uniform deal with an entire pro sports league.

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