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Monday, July 10, 2017

Under Armour to Sign Harlem Rapper A$AP Rocky

According to various reports citing analyst Sam Poser, Under Armour will soon announce that is has signed rapper ASAP Rocky as an endorser. An official announcement is imminent. While terms of the deal haven't been fully disclosed, it's expected that Rocky will serve as the face of Under Armour's lifestyle category, where it's struggled to gain much traction in the industry. Last fall, Adidas bumped Under Armour back down the list to reclaim its spot as the second-biggest footwear and apparel brand in the United States. With news of the Rocky signing and earlier-than-expected order deliveries to Famous Footwear and DSW, it's possible that Under Armour could meet or exceed Q2 earnings projections. Once a Wall Street favorite, Under Armour's stock has taken a significant hit over the past two years and its sales growth pace has been cut in half. Poser believes having Rocky on board as an influencer can help "provide a floor for the stock," but still maintains a negative long-term outlook.