Motley Fool
0
All posts from Motley Fool
Motley Fool in Motley Fool,

Why Under Armour, Inc. Stock Climbed 13.6% in June

What happened

Shares of Under Armour (NYSE: UAA) (NYSE: UA) climbed 13.6% in the month of June, according to data provided by S&P Global Market Intelligence, following Steph Curry's impressive performance in the NBA Finals and some strategic executive changes.

So what

It certainly helped that two-time NBA MVP Steph Curry debuted his new Under Armour Curry 4 shoes -- which launch at retail this October -- in Game 1 of the NBA Finals early last month. Shares of Under Armour climbed nearly 20% between the start of the month and June 13, the day after the Golden State Warriors sealed their NBA Finals Series victory in Game 5.

Curry 4 shoe. Image source: Under Armour.

But shares also pulled back after the Finals ended, only to resume climbing as investors cheered Under Armour's decision to appoint Patrik Frisk -- a former VF Corp. executive and previous CEO of The ALDO Group -- as chief operating officer. Meanwhile, Under Armour founder Kevin Plank will pass the title of president to Frisk, while continuing to serve as CEO. This will reduce the number of executives reporting to Plank to six from 10 and -- as Susquehanna analyst Sam Poser noted -- "finally decentralize some decision making within the company."

Now what

In the press release announcing Frisk's hire, Plank stated, "Patrik's global experience in brand building, including a proven and disciplined record of driving growth, while enhancing profitability and efficiency, will be instrumental as we work to transform our business model to deliver long-term value for our consumers, customers and shareholders."

With Under Armour stock still trading roughly 50% below its 52-week high, and with so much to which investors can look forward, it was no surprise to see shares rebound given all the encouraging developments last month.

10 stocks we like better than Under Armour (C Shares)
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Under Armour (C Shares) wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of June 5, 2017

Steve Symington owns shares of Under Armour (C Shares). The Motley Fool owns shares of and recommends Under Armour (A Shares) and Under Armour (C Shares). The Motley Fool has a disclosure policy.