February 8, 2021 BARRON’S 11
PREVIEW
UNDER ARMOUR ENDING ITS NFL DEAL
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Monday 2/
Global Payments,Hasbro,KKR,
Loews,Simon Property Group, and
Take-Two Interactive Software
report quarterly results.
Tuesday 2/
Carrier Global,Centene,Cisco Sys-
tems,DuPont,Fidelity National
Information Services,Fiserv,Mar-
tin Marietta Materials,S&P Global,
andTwitterrelease earnings.
The National Federationof Inde-
pendent Business releases its Small
Business Optimism Index for January.
Consensus estimate is for a 97 read-
ing, higher than December’s 95.9 fig-
ure. The December reading was the
lowest since last May. “Small busi-
nesses are concerned about potential
new economic policy in the new ad-
ministration and the increased spread
of Covid-19” according to NFIB chief
economist Bill Dunkelberg.
The Bureau of LaborStatistics
releases its Job Openings and Labor
Turnover Survey for December.
Expectations are for 6.6 million job
openings on the last business day of
December, compared with 6.5 million
in November.
Wednesday 2/
Cerner,CME Group,Coca-Cola,
Equinix,General Motors,MGM
Resorts International,O’Reilly
Automotive, andUber Technolo-
giesannounce quarterly results.
Federal ReserveChairman Jerome
Powell speaks via teleconference at
the Economic Club of New York.
Philip Morris Internationalholds
its 2021 virtual investor day.
Newmont, the world’s largest gold
producer, hosts a conference call to
discuss the exploration of new mines.
The firm will also update investors on
its reserves.
Thursday 2/
AstraZeneca,BorgWarner,
DaVita,Duke Energy,Expedia
Group,Illumina,Kellogg,Kraft
Heinz,Laboratory Corp. of Amer-
ica Holdings,Molson Coors Bev-
erage,PepsiCo,Pool Corp.,Tyson
Foods, andWalt Disneyreport
quarterly results.
PayPal Holdingshosts its 2021
investor day.
The Department of Laborreports
initial jobless claims for the week
ending on Feb. 6. Jobless claims have
averaged 835,000 a week in January,
equal to December, and an increase of
nearly 100,000 a week fromNovem-
ber. Much of the increase stems from
business closures resulting from the
still-elevated level of Covid-19 cases.
Friday 2/
Dominion Energy,Enbridge, and
Moody’shold conference calls to
discuss quarterly results.
The University of Michiganreleases
its Consumer Sentiment index for
February. Consensus estimate is for
a 79.5 reading, roughly even with the
January data.
A Sports Brand
Calls Timeout
On Sunday, as Americans tune into Super Bowl LV—Brady
versus Mahomes—sportswear brandUnder Armourwill be
leaving the field. The Financial Times reported recently that
the company would end its on-field licensing deal with the
National Football League, while contracts between indi-
viduals and Under Armour would be reevaluated before next
season. Under Armour’s senior vice president of global
sports marketing, Sean Eggert, confirmed that the contract
wouldn’t be renewed. “We are in active conversations with
the NFL to determine alternative opportunities that best
serve athletes moving forward and to ensure the best [return
on investment] for Under Armour,” he said in a statement.
The move is part of Under Armour’s restructuring, which
began before the pandemic, and has meant exiting contracts
with major college programs and Major League Baseball.
On Wall Street, that’s good news. Only a quarter of ana-
lysts are bullish on the shares, according to FactSet, yet
recent results have increased confidence that the company
is rebounding from pricey deals, accounting questions, and
lackluster performance. Under Armour scored two up-
grades in January, and its stock is up 18.4% to $17.74 for
the week and still down 1.3% for the year.
Jefferies’ Randal Konik reiterated a Buy rating this past
week, while raising his price target by $2, to $25. He writes
that whileNikecontinues to dominate in times when com-
fort and athleisure reign, its shares have gotten rich. In
contrast, Under Armour benefits from the same factors,
and is “well-positioned for global long-term growth,” as
management works to improve inventory and distribution
“and turn to the offensive.”—Teresa Rivas
Getting Separation
Nike has significantly outpaced Under
Armour throughout the pandemic.
Age of Athleisure
The global market for sportswear
has been growing steadily right
through the pandemic.
Under Armour and Nike Shares, Past YearSportswear Market Worldwide,
2018 to 2022*Estimate Source: StatistaSource: FacSet75%50250March
202020210$300 billion2001002018 ’19 ’20 ’21* ’22*Nike.......................................
Under Armour.............................
Coming Earnings
Consensus Estimate Year ago
MAffiliatedManagers (Q4) $3.71 $4.
Hasbro (Q4) 1.14 1.
Take-TwoInteractive (Q3) 0.94 1.
T
Akamai Technologies(Q4) 1.31 1.
Cisco Systems (Q2) 0.76 0.
DuPont deNemours (Q4) 0.84 0.
Fox (Q2) -0.06 0.More Earnings on Page M36.Consensus Estimate
Day Consensus EstLast Period
T JOLTS Job Openings 6,600,000 6,527,
W January CPI 0.30% 0.40%
December WholesaleInventories 0.15% 0.10%F February Michigan Sentiment - p 80.8 79.
Unless otherwiseindicated, times are Eastern. a-Advanced;
f-Final; p-Preliminary; r-Revised Source: FactSetFor more informationabout coming economic reports- and whatthey mean- go to Barron’s free Economic
Calendar at http://www.barrons.com
The Bureau of Labor Statistics releases the
consumer price index for January. Economists
forecast a 1.5% year-over-year rise for both
the CPI and core CPI, which excludes volatile food and energy prices.
Wednesday