CNBC's Jim Cramer on Tuesday expressed dismay at Under Armour's disappointing quarter, suggesting there's little cause to spend money on the athlet
CNBC’s Jim Cramer on Tuesday expressed dismay at Under Armour‘s disappointing quarter, suggesting there’s little cause to spend money on the athletic apparel-maker.
“Perhaps Nike is simply too highly effective,” Cramer stated on “Squawk on the Street.” “This is likely one of the uncommon occasions the place I’ve seen, [Under Armour] might have the higher product however it does not matter.”
Earlier than-the-bell on Tuesday, Below Armour stated it anticipated to lose roughly $50 million to $60 million through the fiscal first-quarter on account of coronavirus outbreak in China.
Below Armour’s fourth-quarter gross sales got here in under estimates, and CEO Patrik Frisk informed analysts that firm gross sales might fall by a low-single digit p.c for the fiscal yr.
Shares of Below Armour fell laborious Tuesday, sinking 17% as buying and selling started to a brand new 52-week low of $16.66.
“They actually gave you no cause to personal it, in any respect,” the “Mad Money” host stated. “It’s extremely uncommon that you’ve got that.”
Cramer stated Below Armour’s current difficulties are “beautiful,” given the standard of the corporate’s management. Frisk grew to become CEO on Jan. 1, taking the reigns from founder Kevin Plank, who remains executive chairman and brand chief.
“I’ve by no means met a single one that has a nasty phrase about Kevin Plank and this Patrik Frisk,” Cramer stated. “They are going to need to deliver somebody in fully from outdoors. They need to seal somebody from…