After years of setting the sports apparel world ablaze, Under Armour can’t seem to catch a break these days.
A recent article in the Post reviewed UA’s 1.03 M sq. ft. logistical building at Tradepoint Atlantic and raised the issue of whether an actual lease had been signed. Hot on the heels of that investigation, the sports apparel company is once again under the spotlight regarding several issues.
Projections from the bean counters are the first issue, specifically focusing on the company’s financial performance (or lack thereof). A Yahoo Finance article featured the following information:
Shares of Under Armour have slipped since it reported its quarterly earnings results last Thursday. Under Armour’s Q2 revenues climbed roughly 8% to hit $1.17 billion, which topped our Zacks Consensus Estimate of $1.15 billion. The company also reported a total quarterly loss of $95.5 million, with $79 million coming from restructuring and impairment charge. This led to an adjusted loss of $0.08 per share.
And, as the saying goes, “the hits just keep on coming.”
The Baltimore Business Journal reveals that another senior management executive is leaving the company:
Finally, since bad things come in threes (according to another popular idiom), a front-page article in The Baltimore Sun features the following headline: Board review clears Plank of wrongdoing in real estate deals.
However, despite the board’s decision, there is still litigation pending against UA. Some analysts say the damage from this type of litigation may not cause significant damages, but UA’s stock prices are hovering around the $19-$20 range due to stagnant growth.
This quote also appeared in the Sun’s article:
Under Armour, which has been struggling after years of rapid growth, is in the midst of a restructuring to become more efficient and boost its brand.
Baltimore City ponied up a record deal of $660 million to help finance infrastructure to the Port Covington Development. There are some troubling aspects to this prime example of corporate welfare, particularly when you realize that UA CEO Kevin Plank stands to make billions of dollars on the deal through his real estate company, Sagamore Development.
Though UA was once was the darling of the upstart sports apparel companies, today the company is clearly having difficulties. Top of mind for us is the TPA lease, since that logistical center was supposed to bring jobs to the area. It is, and has been, our belief that the promised lease will fail to materialize due to UA’s various issues.
In our previous column, we published UA’s corporate response to our original article. We also invited UA to provide us with photographs from inside the TPA building that show progress toward the site becoming a functional logistical operation.
Sadly, we are still waiting for the photos, and we will not hold our breath that they will materialize.
If/when the photos reach our inbox, they will be published immediately. While we wait, our next investigation will focus on who actually paid for the building that bears the UA logo.
After all, we are here to ensure the political and corporate cronies don’t pick the pockets of taxpayers.
The Baltimore Post by the numbers, from February 2017 to August 2, 2018:
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