News; Decker Over Under Armour?

UGG Boots Sale have been accelerating on a weekly basis. I'm told this is a great season for Uggs. U.S. Uggs's sales growth should be up 15% year over year. Under Armour on the last quarterly conference call the company said they expect revenues for the second half of 2009 to decline by 8%. Under Armour also said it's going to mark down some of its current products.

I think Deckers is clearly the better company on all counts. Only trading tone times expected Under Armour trades at a huge multiple of 26 times earnings. Deckers is cheaper when you count for Under Armour's higher projected growth rate. Deckers up 6%. Under Armour's already up 23%. You missed the Under Armour trade.

The charts of these to companies look almost exactly the same but based on the fundies Deckers is a buy, sell Under Armour I don't want it."



Stout Women's Classic Cardy of Ugg Australia

"Under Amour's men's apparel has run out of growth opportunities.Under Amours banking on two customers - Dick's and Sports Authority. The company gets 35% of its men's apparel sales, which in total comprise 53% of its revenues, from compression and while Under Amour's done a lot to broaden athletes' use of compression, it's now seeing a lot of competition from other players like Nike and Champion. 31% of their net revenues in which means that Under Amour's has much less control over its own destiny.Plus Ugg Classic boots have continued to gain market share at Nordstroms. Just ask yourself this question, who would you rather have selling your products? Dick's, Sports Authority, or Nordstrom?