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MarketFoolery

Under Armour Soars, GE Fizzles

MarketFoolery

The Motley Fool

Money, Business, Motley, Business News, Stocks, News, Investing, Market, Fool

4.71.7K Ratings

🗓️ 30 October 2018

⏱️ 15 minutes

🧾️ Download transcript

Summary

Shares of Under Armour have their biggest pop in a decade, while GE’s latest quarterly results come with 92% cut to the quarterly dividend. Taylor Muckerman analyzes all that plus the latest earnings from BP and the headline-grabbing lawsuit ExxonMobil is facing.

Transcript

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0:00.0

It's Tuesday, October 30th. Welcome to Market Flory. I'm Chris Hill joining me in studio today.

0:06.4

Taylor Mukerman in the house. Good to see you.

0:09.4

We must protect this house. We will project this house from other business news

0:15.5

podcasts I suppose. Earnings Palusa is starting to heat up and we're gonna get to

0:20.7

GE and we're gonna get to the big oil stocks. We got to start with the stock of the day and that is, I am

0:27.8

very happy to say. For the first time and a long time, armor. Third quarter profits for under armor

0:34.3

came in higher than expected. International sales really look like they

0:38.6

crushed it and the stock up 23% this morning. Yeah this is appears to be the quarter that the market's been waiting and waiting and waiting for

0:46.1

out of Under Armour.

0:48.1

As you mentioned in the US, lackluster, down 2%, but international, up 15% so that's carrying the day here.

0:56.0

When you look at this definitely coming out of kind of a restructuring turnaround they fired

1:01.6

several hundred people lately and the potential to maybe

1:05.0

have another round of that moving forward. But it seems to be, they're on track and one thing that

1:11.9

jumped out to me kind of ironic was that they mentioned sales at Dix or sales to Dix were up 4% and just in August,

1:20.0

Dix blamed their last lackluster performance on decreasing under armor sales in their stores.

1:26.3

So kind of two different tails there, under armor saying that it's going well inside of Dix,

1:32.1

Dix saying that their partnership with Kohl's kind of hurting business

1:35.8

in the fully priced stores like Hibbit Sports and Dix with the discount Kohl's

1:40.8

partnership.

1:41.8

I like what I see here, and then I also kind of dig what they're trying

1:45.2

with Armour Box, which they announced last week, so after the quarter, didn't impact the quarter,

1:49.8

but kind of the stitch fix model of subscription box for athletic apparel which I don't know if it's

...

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