Image Source: Wikipedia
Context, Bearish Thesis
There have been many reasons to short Under Armour (UAA) (UA) in the last quarters. While the stock was trading at a significant premium to peers such as Nike (NKE) and adidas (OTCQX:ADDYY) (OTCQX:ADDDF), the brand’s momentum was falling fast, and revenue growth in North America, by far the main market, was in a sharp downtrend and entered into negative territory. This is evident in the chart below, where I plotted the YoY growth rate for sales in North America as it appeared before last quarter’s earnings release.
