NEW YORK, NY / ACCESSWIRE / February 14, 2018 / Despite posting earnings that missed estimates, Under Armour saw its sales rise unexpectedly, causing shares to rally as traders absorbed the news. Lulemon also saw a slight gain despite any catalyst.

RDI Initiates Coverage on:

Under Armour, Inc.
https://rdinvesting.com/news/?ticker=UAA

Lululemon Athletica Inc.
https://rdinvesting.com/news/?ticker=LULU

Under Armour's shares skyrocketed on Tuesday ending the day up 17.36% on significant trading volume compared to usual. The athletic apparel retailer's stock had one of the best days ever yesterday. It was the best performance since January of 2016 and came after the company reported better than expected fourth quarter sales. The company announced on Tuesday that its revenue rose despite North America sales declining. Revenue in the quarter grew to $1.37 billion, a 5% increase, and ahead of what analysts had been expecting. While traders are happy with the results, one analyst is cautious. Mark Tepper, who is the president of Strategic Wealth Partners told CNBC's "Trading Nation", "In Vegas this is what they call a sucker bet. According to Tepper, the results weren't good, they were just "less bad" than what people expected. He remarked, "The company also has quite a bit of debt and their interest costs are growing quickly. At a forward P/E rate of 68, we wouldn't touch it with a 10-foot pole."

Access RDI's Under Armour, Inc. Research Report at:
https://rdinvesting.com/news/?ticker=UAA

Lululemon Athletica's shares closed up a modest 0.61% yesterday on about 3.4 million shares traded. There was no news from the company, but rival Under Armour posted strong sales on Tuesday. Recently the company's CEO, Laurent Potdevin, resigned, after a range of instances led the company to saying he "fell short of ... standards of conduct." One incident was the former CEO's relationship with a designer who contributed to his resignation. Sources told CNBC that Potdevin had a multi-year relationship with this woman. A company spokesperson stated, "Any time violations of company policies or standards of conduct are brought to our attention, we take appropriate action." The company is already searching for a new global CEO.

Access RDI's Lululemon Athletica Inc. Research Report at:
https://rdinvesting.com/news/?ticker=LULU

Our Actionable Research on Under Armour, Inc. (NYSE: UAA) and Lulemon Athletica Inc. (NASDAQ: LULU) can be downloaded free of charge at Research Driven Investing.

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SOURCE: RDInvesting.com