Citi cuts Under Armour to Sell, warns of margin headwinds
Citi downgraded Under Armour to Sell, citing persistent turnaround headwinds that threaten operating margins and revenue recovery. Shares slumped sharply on the rating cut as investors weighed slower U.S. wholesale growth and elevated promotional spending risks.
1. Citi Downgrades Rating
Citi cut Under Armour’s rating to Sell on February 10, highlighting ongoing challenges in the company’s turnaround plan. The firm warned that elevated promotional spending and slower U.S. wholesale recovery could compress operating margins and delay profitability milestones.
2. Market Reaction
Under Armour shares slumped in early trading following the downgrade, reflecting investor concerns over top-line momentum and cost pressures. The shift comes as the company prepares to report fourth-quarter results, with analysts now more cautious on near-term outlook.