Jordan Spieth’s crushing loss Sunday was hard for many to watch since he was on his way to winning his second Masters in a row and twice in his third appearance — a feat even Tiger Woods couldn’t have matched.
But that dream fell apart for the 22-year-old on the 12th hole. In the recaps, sportscasters described it as one of the most staggering losses in the history of the game. But by Monday, they noted he would likely recover from the loss. For corporate sponsor Under Armour Inc., Spieth’s defeat is unlikely to create an area of vulnerability.
Although the activewear company’s stock was down 0.6 percent in pre-market trading today to $43.54, analysts expect a strong performance of its golf apparel business, which includes a line from Spieth.
And as investors gear up for Under Armour’s annual meeting later this month, chairman and chief executive officer Kevin Plank penned a letter to shareholders in the 2015 annual report that was well over 1,000 words.
In it, the ceo reminded investors that the company reached a significant milestone in 2015: it marked 10 years as a public company, and “posted strong results on our scoreboard, highlighted by 30 percent average top-line growth and 23 consecutive quarters of 20-plus percent net revenue growth.”
“This ongoing revenue streak is something we are especially proud of given that we are one of only two companies that can make this claim in the S&P 500,” he said.
The strength of that revenue growth seems to have gone unnoticed by Wall Street. Shares are hovering near their 52-week low of $42.49, which is down about 48 percent from a year ago. But for the three-year period, the stock is up over 55 percent – making it one of the top 20 performing stocks in the WWD Global Stock Tracker.
To bolster the stock, Plank needs to keep delivering robust sales and stealing marketing share from competitors such as Nike and Adidas. In the shareholder letter, he said the company’s “momentum and focus remains on what is next for Under Armour.”
“We continue to elevate our brand and extend our reach to athletes all over the world by building capabilities and capacity to support our growth,” he said, adding that sights are “set on reaching $.7.5 billion in revenue and $800 million in operating income by 2018.”
The company’s annual meeting is on April 28 in Baltimore. Telsey Advisory Group has an “outperform” rating on the stock and a $50 price target.