Lululemon Athletica inc. (LULU): Under Armour Inc (UA) Stock Up by More Than 3%

Citizens of Baltimore have more to celebrate than just a Super Bowl victory. Headquartered in the Mid-Atlantic city is one of the most popular and fastest-growing apparel companies in the nation: Under Armour Inc (NYSE:UA), shares of which are up by more than 3% in afternoon trading.

Under Armour Inc (UA)

In the absence of a publicized catalyst, Under Armour appears to be riding a number of waves higher today. First, the consumer is back with a vengeance. The nation’s two largest automakers reported impressive gains today in March sales. Ford Motor Company (NYSE:F)‘s were up by 6% on the heels of strong demand for its Explorer and Escape SUVs, while General Motors Company (NYSE:GM) saw its sales climb by a similar 6% thanks to an excellent showing by its Cadillac division.

The news sent stocks up virtually across the board: The S&P 500 is up 10 points, or 0.64%. Reaping an inordinate advantage today are retail-oriented stocks. In addition to Under Armour Inc (NYSE:UA), shares of both The Home Depot, Inc. (NYSE:HD) and Wal-Mart Stores, Inc. (NYSE:WMT) are climbing in intraday trading. The Home Depot, Inc. (NYSE:HD)’s are higher by 1.7%, making it one of the best-performing stocks on the Dow Jones Industrial Average. Meanwhile, Wal-Mart Stores, Inc. (NYSE:WMT) shares are up by 0.6%, firmly entrenching it among the blue-chip index’s gainers.

Potentially providing an extra boost to Under Armour Inc (NYSE:UA) specifically is the ongoing issue at Lululemon Athletica inc. (NASDAQ:LULU). In the middle of last month, the mainly female-focused sports apparel company recalled the entire season’s shipment of yoga pants after realizing they were too sheer. Lululemon Athletica inc. (NASDAQ:LULU)’s shares fell immediately after the problem was announced and have continued to plummet, down more than 10% over the past three weeks.

But beyond this, Under Armour is simply a great company. Since 2008, its sales have more than doubled, and its net income has more than quadrupled. And it has pulled this off without incurring an inordinate amount of debt. According to Standard & Poor’s Capital IQ, at the end of last year it had only $52.9 million in long-term debt relative to $341.8 million in cash and equivalents.

It’s for these reasons and others that we recently picked Under Armour as one of the “25 Best Companies in America.” As I noted at the time: “In the years since its humble beginnings in the basement of [CEO Kevin Plank's] grandmother’s townhouse, Under Armour Inc (NYSE:UA) has grown into a billion-dollar company that’s accomplished what few believed possible. It challenged Nike on its own turf and prevailed thanks to edgy marketing, Plank’s perseverance, and the signing of top-shelf athletes like Baltimore’s Ray Lewis and Boston’s Tom Brady.”

The article Under Armour Stock Up by More Than 3% originally appeared on Fool.com and is written by John Maxfield.

John Maxfield has no position in any stocks mentioned. The Motley Fool recommends Home Depot, Lululemon Athletica, and Under Armour. The Motley Fool owns shares of Under Armour.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Countries with the Highest Suicide Rates

The 10 Most Technologically Advanced Countries in the World

The 10 Safest Countries in the World to Live in Peace

The 10 Top Selling Smartphones in the World 2014

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!