Wednesday’s Headlines: Under Armour Continues To Lag Behind Its Competitors
1. Shares in Under Armour fell almost 19% on Tuesday after the athletic apparel maker’s fourth-quarter sales missed analysts’ estimates. Revenue came in at $1.44 billion while earnings per share were $0.10, with the company expecting the coronavirus outbreak in China to lower sales by roughly $50-$60 million during its first fiscal quarter. The company has been struggling to grow sales over the past two years as it fails to keep up with the heightened competition of Nike and Lululemon. Read more here.
2. Strong sales of “Star Wars” and “Frozen 2″ toys helped boost Hasbro’s holiday sales during the fourth quarter, it revealed in its earnings Tuesday. Net income rose to $267.3 million, or $2.01 per share, in the quarter ended Dec. 29, from $8.8 million, or $0.07 per share, a year earlier, boosted by franchise toy sales in the last quarter rising 50% to $408 million. The strength of these sales is proof that Hasbro’s partnership with Disney continues to be a lucrative and stabilizing one. Read the complete report here.
3. Big Tech could be in big trouble after it was announced on Tuesday that the Federal Trade Commission will examine prior acquisitions by Alphabet, Amazon, Apple, Facebook, and Microsoft. The FTC will require the companies to provide information on acquisitions not previously reported to the antitrust agencies and will hone in on the question of how Big Tech companies use acquisitions to amass power. Apple seems to be a primary target, and how it makes ‘discreet’ acquisitions, with CEO Tim Cook previously stating that the iPhone maker acquires a company every two to three weeks on average. Read the full story here.