Fitness financials: Analyst expects Under Armour to gain from products in '08, plus Collective Brands-adidas, GSI

Analyst expects Under Armour to gain from products in '08. Judge lowers award in Collective Brands-adidas lawsuit. GSI Commerce shares fall on downgrade.
Author:
Updated:
Original:

Analyst expects Under Armour to gain from products in '08

Despite a weak U.S. economy that has hurt business for many retailers, Under Armour (NYSE: UA) is poised to gain from better products and pricing, an analyst said.

After meeting with senior management recently, Stifel Nicolaus & Co. analyst Thomas D. Shaw wrote in a client note that he expects "more streamlined processes in product engineering, product pricing, and marketing timing" to benefit the retailer's sales and margins.

Shaw wrote that the company's bookings for the second half of 2008 are "trending comparably" to last year, which is positive, especially considering a lean inventory stance adopted by many retailers. He added that order cancellations and product returns are either flat are declining from a year ago.

For the rest of the year, Shaw said he will watch to see if the company can boost sales of men's apparel and whether consumers will pay for the company's higher-priced products this fall and winter. He rated the stock as a "Hold."

Judge lowers award in Collective Brands-adidas lawsuit

Collective Brands (NYSE: PSS), parent of Saucony and Hind, said a federal judge in Oregon has reduced a judgment against the company in a trademark infringement case with adidas by nearly 80 percent.

The award was cut from $305 million to $64.4 million. Collective Brands had asked the judge to reduce the award, calling it "unsupportable and excessive."

A federal jury in May determined that Collective Brands violated adidas' trademarked three-stripe logo on some of its shoes and ordered the company to pay damages. adidas filed the suit in 2001.

The judge did not grant Collective Brands request for a new trial.

Matt Rubel, Collective Brands' CEO, said in a statement that he was pleased the judge lowered the judgment but that the company will appeal the verdict.

Soleil Securities Group analyst Jeffrey Stein wrote in a client note the development is positive for Collective Brands and upped his price target on the shares by $3 to $25, and maintained his "Buy" rating.

"The latest developments eliminate a high level of uncertainty regarding the Collective Brands balance sheet and its ability to reinvest in its business and/or make future acquisitions," Stein wrote.

GSI Commerce shares fall on downgrade

Shares of GSI Commerce (Nasdaq: GSIC) dropped nearly 7 percent as an analyst downgraded the designer and operator of retailer websites.

While the company is expected to do well in the holiday season despite broader retail woes, Stifel Nicolaus & Co. analyst Scott Devitt told clients that investors might be able to profit more by owning shares of other e-commerce companies like Amazon.

Part of the problem with GSI Commerce's stock, Devitt wrote in a research note, is that it had already risen almost 50 percent since July and was approaching his firm's price target of $19, meaning in his view investors wouldn't likely be able to squeeze much more profit out of the shares in the near term.

"We believe GSI Commerce is a well-positioned, well-managed company and our current rating change is based on valuation, which should remain relevant in this difficult economic environment," Devitt wrote. He downgraded the stock from "Buy" to "Hold."

GSI Commerce's shares fell $1.17 to close at $16.51 on Sept. 12.


For more information about any public company on this page or its financial reports, as well as to view stock prices updated every 15 minutes, visit the SNEWS® Stock Market Updates. Click on: www.snewsnet.com/cgi-bin/snews/stock_report.html.

Related

Outdoor financials: Jarden sees no material exposure to Lehman Brothers and AIG, plus Under Armour, GSI, Collective Brands-adidas

Jarden sees no material exposure to Lehman Brothers and AIG Despite Lehman Brothers Holdings' bankruptcy filing and AIG's quest for emergency funding to shore up its balance sheets, Jarden Corp. (NYSE: JAH) said it has taken actions to alleviate any potential impact to the ...read more

Fitness financials: Nautilus shares rise on analyst upgrade, plus Under Armour, adidas, Puma

Nautilus shares rise on analyst upgrade Nautilus (NYSE: NLS) stock jumped nearly 17 percent after an analyst upgraded the company, encouraged by better-than-expected first-quarter sales and cost control efforts. Reed Anderson of D.A. Davidson said in a client note that Nautilus' ...read more

Financials.jpg

Outdoor financials: Amer Sports lowers FY '08 guidance on weak wintersport results, plus Forzani, Under Armour, Wolverine

Amer Sports lowers FY '08 guidance on weak wintersport results Amer Sports said its sales for November and December have been below expectations, and as a result, the company will not reach its EBIT (excluding one-off items) guidance of EUR 80 million to EUR 90 million in 2008. ...read more

Outdoor financials: Under Armour Q1 profit leaps, plus GSI Commerce

Under Armour Q1 profit leaps Under Armour (NYSE: UA) recorded an 80-percent surge in its first-quarter profit, helped by a 31-percent rise in apparel revenues, as well as strong sales at its online and factory stores. Earnings for the quarter ended March 31 were $7.2 million, or ...read more

Fitness financials: Dick’s receives analyst downgrade, plus GSI Commerce

Dick’s receives analyst downgrade A Raymond James analyst lowered his rating on Dick's Sporting Goods (NYSE: DKS), saying the company's operations and tough macro-economic pressures pose significant challenges. The company has made poor capital spending decisions and has ...read more

Fitness financials: Bally readies for bankruptcy, deals with shareholder opposition to plan, plus Amer Sports, Nike, Everlast, Crocs, Under Armour, GSI

Bally readies for bankruptcy, deals with shareholder opposition to planBally Total Fitness Holding (Pink Sheets: BFTH) has been paving the way for its impending Chapter 11 bankruptcy filing, while various senior managers have been selling shares and majority shareholders have ...read more

Outdoor financials: VF to make 'aggressive' cost cuts, lowers Q4 profit expectations, plus Under Armour

VF to make 'aggressive' cost cuts, lowers Q4 profit expectations VF Corp. (NYSE: VF) said it is taking "aggressive cost reduction actions" to withstand a global recessionary environment in 2009 and, for a second time, will be lowering profit expectations for the fourth quarter. ...read more

Fitness financials: Analysts estimate 'healthy lifestyle' stocks will fall in '09, plus Nautilus, GSI Commerce

Analysts estimate 'healthy lifestyle' stocks will fall in '09 Although health and exercise clubs usually benefit from New Year's resolutions, analysts predict that economic stress will hamper the growth of companies like Life Time Fitness (NYSE: LTM) and Town Sports (Nasdaq: ...read more

Fitness financials: Analyst predicts same-store sales growth for Wal-Mart, plus adidas/Collective Brands

Analyst predicts same-store sales growth for Wal-Mart A Barclays Capital analyst raised his first-quarter profit estimate on Wal-Mart (NYSE: WMT), saying the company should post a rise in same-store sales. Analyst Robert Drbul raised his quarterly estimate by $0.02 to $0.77 and ...read more