Under Armour Poised to Close 2016 Down 27%

Shares of Under Armour (UA) - Get Report were lower on Friday and appear poised to close out 2016 down about 27%. The stock has taken a beating this year and Real Money contributor Chris Laudani says the sports retailer needs to re-accelerate the top line, noting that revenue growth is clearly slowing. In 2014, Under Armour posted revenue growth of 32%; this year it may reach 24%. He says the company has to jump-start margins. Laudani says gross margin will be down about 100 basis points this year from last and operating expense will be up 60 to 80 basis points.

Considering that Under Armour rival Nike (NKE) - Get Report also said gross margins would remain under pressure during its latest financial report, the sports retail business doesn't seem to be on the rebound at either company. Under Armour is holding in TheStreet'sGrowth Seeker Portfolio.

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