Since Under Armour’s intra-day low on January 24th, the stock has climbed 13%. Unless the company has a major unexpected setback, these minor pullbacks are opportunities for future profits.
More broadly, there was a 5% jump in U.S. athletic footwear sales in 2012 to $13.8 billion, according to NPD data cited in The Wall Street Journal. The higher sales were driven by higher prices, and that trend is expected to continue into 2013 as consumers are willing to spend for the latest trends (such as spikeless golf shoes,) colors and technology that retailers and manufacturers offer, NPD suggests.
The trend stands to benefit speciality retailers, including Foot Locker, Inc. (NYSE:FL), which according to a recent Barron’s article is well positioned to capitalize on the market trends particularly in light of the company’s strength in basketball shoes. Foot Locker (NYSE:FL) generated a 10.2% increase in its 3Q comparable store sales, which surpasses the 3.6% increase that competitor Finish Line achieved in the similar period. Shares of Foot Locker are up 10% year to date and the company hosts a shareholder meeting in March.
In recent days, professional golfer Brandt Snedeker‘s currency went up at the Pebble Beach National Pro-Am when he won the event along with $1.17 million. Snedeker is ranked second only to Tiger Woods among U.S. pro-golfers. It was TaylorMade, the maker of golf clubs and accessories used by Snedeker, that got the most publicity in Pebble Beach, California — not Nike — but the FedEx Corporation (NYSE:FDX) Cup-PGA tour isn’t over yet.
The article Tee-Time for Sports Apparel Stocks originally appeared on Fool.com and is written by Gerelyn Terzo.
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