After more than 25 consecutive quarters of 20%-plus revenue growth, the Under Armour (NYSE:UA) growth engine is showing its first signs of halting. While it's easy to understand the headwinds impacting the company, it's more difficult to forecast where UA's future growth will come from. In this article, we will explore what we believe will be the driver of the double-digit revenue growth for the next couple years. Also, we will discuss whether you should invest in the brand after its shares have more than halved in this past year.
Replicating the Successful U.S. Model Internationally
Clearly, Under Armour is a U.S. company that sells apparel as they both represent 78% and 67% of Q1 2017 revenues, respectively. However, North America sales are shrinking which is an alarming sign to investors as the remaining regions (22%) do not weight enough to mitigate fears. Nevertheless, International revenues managed to offset lackluster North American sales as total net revenues grew by +7% at $1.12 billion.
