Episode summary
Under Armour Cuts Sales View on Softer Demand Around the World | Bloomberg Intelligence
Bloomberg Intelligence
· · Hosts: Paul Sweeney, Scarlet Fu, Stacey Vanek Smith, John Tucker · Guests: Poonam Goyal, Matthew Schettenhelm, Nathan Naidu, Michael Halen
Summary
Under Armour cut its full-year sales view after demand softened in several regions, and the analyst said the company is still in the middle of a long turnaround. Inventory was trimmed in line with sales, but the analyst argued the bigger issue is whether consumers respond, especially as higher-end brands appear to be holding up better than midmarket labels. With Steph Curry gone, Under Armour is leaning more on product innovation such as its much-discussed bouncy T-shirt, but the analyst said that kind of product-led recovery will take time.
The show then turned to the FCC’s vote to repeal the nationwide 39% audience cap on TV station ownership. The media litigation analyst said the change opens the door for broadcasters like NextStar and Sinclair to grow larger, though a legal challenge is likely because Congress set the cap in 2004 and the law may limit how much the FCC can change it on its own.
On gaming, the technology analyst said Take-Two’s fiscal 2Q bookings guidance sits 7-10% below consensus because Zynga remains weak, even as Grand Theft Auto VI’s Nov. 19 launch should push revenue into the second half. Later, the restaurant analyst said Wendy’s withdrew its 2026 outlook and cut its dividend to support a turnaround, while Sweetgreen’s outlook was also cut as consumer demand weakened and the company faced additional pressure from the cyclospora outbreak.
Key takeaways
- Under Armour’s sales outlook was cut because the analyst sees weaker consumer demand and a turnaround that is still not close to complete.
- The analyst said Under Armour’s bouncy T-shirt is a bright spot, but the brand still lacks the kind of athlete-driven momentum it had with Steph Curry.
- The FCC’s repeal of the 39% audience cap could help NextStar and Sinclair expand, though the media litigation analyst expects a court fight over whether the FCC can change a congressionally set rule.
- Take-Two’s guidance remains conservative, with fiscal 2Q bookings seen 7-10% below consensus and GTA VI revenue back-loaded to the second half.
- Wendy’s is using a dividend cut and withdrawn 2026 outlook to buy time for a multi-part turnaround focused on menu value, operations, marketing and franchise economics.
Notable quotes
“the consumer is actually weak because when I look at competitors, some of the larger ones like Adidas and Nike, they're actually doing pretty fine in North America”
“they're going back to their DNA. They're going back to the basics which is can we develop a product that speaks for itself and it doesn't need a brand ambassador”
“what the FCC did yesterday is scrap that rule. and and say, "Look, we're not going to have this numeric limit on companies anymore”
“the real turnaround will probably kick in sometime in 2027”
How the episode opens
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Listen on demand wherever you get your podcasts or watch us live on YouTube. All right. Well, let's um talk about one of the big businesses um or one that aspires to be a big business and that would be Under Armour.
It's the athleisure company, athletic wear company. Maybe athleisure is pushing it a little bit. Punam Goyel is uh senior US e-commerce and retail analyst here at Bloomberg Intelligence.
And Punam Under Arour, it feels like it's been this um reorganization restructuring story for a while now. Where are we in that reorganization restructuring story um for Under Armour? because the stock performance today shows that there's still some way to go.
Been through this turnaround story several times over the past two decades. So clearly um it's it's happening once again. Now what I'd say for them, you know, I think they are focused on the right things.
The question is will the consumer respond? Right sizing inventory was down just 3% in line with the sales decline is a positive sign. That said, it was interesting that they called out that the consumer is actually weak because when I look at competitors, some of the larger ones like Adidas and Nike, they're actually doing pretty fine in North America.
And I think that may have to do with just their bigger boat and also the World Cup and their bigger presence there.
Yeah, I was wondering about why demand was softening with Under Armour. I know Under Armour is kind of a middle-ofthe-market brand. is part of what's happening here maybe that the that demand for kind of middle-of the road brands uh is softening while maybe demand for higherend brands is is gaining ground or is is is it something else entirely?
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- under armour guidance
- retail demand softening
- take-two bookings
- fcc tv audience cap
- restaurant earnings
Companies and tickers mentioned
- UA
- UAA
- TTWO
- WEN
- SG
- Under Armour
- Take-Two Interactive
- Zynga
- Wendy’s
- Sweetgreen
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Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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