It’s arguable that people are increasingly leaning towards the healthy lifestyle trend but the market shows both sides to the story. Under Armour, sports apparel retailer’s stock is having a hard time and so is United Natural Foods, distributor of natural and organic foods. Yet, Fitbit, dedicated to making fitness products that help you stay motivated and active is doing well, creating slight controversy. But the controversy becomes more than just slight when we observe Krispy Kreme Doughnuts, who recently released earnings last week, doing surprisingly well.
Looks like the market treats itself every once in awhile too!
FBR & CO. ANALYSTS DECREASE EARNINGS ESTIMATES FOR UNDER ARMOUR INC (UA): (Released: 02/06/16) FBR & Co. recently reduced their estimate of the company’s EPS from $0.04 to $0.01. When Sports Authority retailer announced their bankruptcy on Tuesday, Under Armor was forced to lower its full year revenue to $4.35 billion, down from $5 billion. They have only received $43 million out of the $163 million they expected from the retailer and Matt Thalman (@mthalman5513) , The Street writer, says he doubts they will see the rest of it.
Watch List – Fitbit, (NYSE:FIT), Under Armour, (NYSE:UA): (Released: 02/06/16) Fitbit’s stock rose by 2.33% on Wednesday to $14.51, when they declared their newest members of the Board of directors; both Laura Alber, president and CEO of Williams-Sonoma, Inc and Glenda Flanagan, Executive VP and CFO of Whole foods, joined the company’s board of directors. In turn, their stock was positively affected. Richard Tang quotes Fitbit CEO, James Park, saying that “[they will] bring a wealth of experience driving the growth and transformation of leading consumer and health-related brands.”
Krispy Kreme domestic business drives sales up 3%: (Released: 31/05/16) KKD has reported a 3% rise in sales for the past quarter. Wall Street Journal writer Tess Stynes (@TessStynes) reports that this is due to a rise in domestic sales with a 3.6% increase in company stores and a 12% increase in franchise revenue. Something to consider is that in early May Krispy Kreme agreed to be taken private in a $1.35 billion dollar deal with the fast expanding European investment fund, JAB Holding Co. It’s for you to decide whether this will allow them to better compete alongside globally known rival donut and coffee retailers such as Starbucks Corp. and Dunkin Brands Inc….or set them back.
United Natural Foods (UNFI) Stock Slumps, Deutsche Bank Cautious Ahead of Q3 Results: (Released: 03/06/16) Deutsche Bank analysts see several headwinds weighing on the company’s fiscal 2016 Q3 results, U-Jin Lee (@ujeeee) writes. The stock is currently down to $25.53. Profits are expected to drop while sales are projected to rise by 2%. The primary factor why the prospect is not ideal for the company, UNFI itself argues, is that fact that the distribution of natural and organic products has commoditized over the past years. We’ll see how United Natural Foods copes with the increasing competition in their business environment this afternoon when earnings are released.