Reply to Under Armour Shares Falling

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[quote=Anonymous][quote=Anonymous]I don't understand why one would buy shares in a traditional retail company -- regardless of what's fashionable. Clothes are made for pennies on the dollar and tastes change daily; what was popular 6 months ago may not be anymore and margins are so thin, they can't sustain stock price if there's a demand shock. If you want to do retail, it's all about e-commerce or specialty retail -- not clothes or food.[/quote]

I don't know about now but in the past clothing retailers used to be pretty solid stocks.  Some of them used to pay good dividends too.

Just listening to a blurb this morning, it sounds like Under Armour is doing good revenue wise.  It's just that they didn't meet expectations (even though they still made a profit) and is why it's falling so much.

And that's how it works with the stocks sometimes.  Companies that generate little revenue might have well performing stocks and vice versa.

Although it might indicate that Under Armour's shares are inflated.[/quote]

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