The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
BALTIMORE, United States — Under Armour Inc. suffered its worst stock decline in more than four months after Morgan Stanley pointed to a market-share decline for the company, especially among women.
The company is losing ground to apparel rivals for the first time in three years and average selling prices are falling at an accelerated pace, according to a report from Morgan Stanley analyst Jay Sole.
“Both trends are more pronounced in women’s apparel, despite major marketing investment in this division last year,” said Sole, who cited data from SportScan. He cut his rating on the company to underweight, the equivalent of sell, and lowered his price target to $62 from $103.
The shares fell as much as 10 percent to $67.43 in New York, the biggest intraday drop since Aug. 24. The company had been one of the best performers in the apparel industry, with the stock rising 19 percent in 2015 — its seventh straight year of gains.
By Nick Turner; editor: Mark Schoifet.
In 2020, like many companies, the $50 billion yoga apparel brand created a new department to improve internal diversity and inclusion, and to create a more equitable playing field for minorities. In interviews with BoF, 14 current and former employees said things only got worse.
For fashion’s private market investors, deal-making may provide less-than-ideal returns and raise questions about the long-term value creation opportunities across parts of the fashion industry, reports The State of Fashion 2024.
A blockbuster public listing should clear the way for other brands to try their luck. That, plus LVMH results and what else to watch for in the coming week.
L Catterton, the private-equity firm with close ties to LVMH and Bernard Arnault that’s preparing to take Birkenstock public, has become an investment giant in the consumer-goods space, with stakes in companies selling everything from fashion to pet food to tacos.