DURANT SAYS NO ONE WANTS TO PLAY IN UNDER ARMOUR SHOES; UAA SHARE PRICE DROPS
NBA star Kevin Durant stated on The Ringer’s “Bill Simmons Podcast” that “nobody wants to play in Under Armours”, and UAA shares have dipped 3% since. Durant was answering a question related to why Maryland, a one-time power, has been unable to recruit elite basketball players over the last 20 years. In 2014, UAA aggressively pursued Durant to sign an endorsement deal, but the Warrior’s star chose to resign with Nike (NKE) for an estimated $285 million over 10 years.
Howie Long-Short: Finish Line announced that it would be cutting its full year profits forecast amidst a highly promotional retail environment. The share price fell 18% thereafter. I’m attributing the 3% UAA drop to the statements released by FINL, not the off-hand comment from KD, who is from Maryland but chose to play at Texas.
Fan Marino: UCLA signed 4 5-star basketball recruits between 2016-2017; only Kentucky, Duke and Arizona had more. So perhaps it’s a Maryland issue, not an Under Armour issue