Under Armour stock used to go up when the company had another ho hum quarter of consecutive double digit growth. Now Under Armour’s only chance to excite investors seems to they cut costs.
On Monday, investors approved Under Armour unilaterally saying they would terminate their deals with UCLA and Cal, which have approximately $180 million in cash combined owed to them, as its share price rose more than six percent.
It’s odd. Because this type of cost cutting is actually going to wind up back on their plate — and it doesn’t take a legal degree to figure that out.