Under Armour’s operating losses, sponsorships raise red flags for analysts

Under Armour Inc. shares closed Thursday up 4.6% after the athletic gear company reported revenue that exceeded expectations. Still, analysts are calling the beat “weak” and raised red flags about liabilities and the burden of outlays for the company’s big-name sponsorship arrangements.

Under Armour UA, -7.98%UAA, -8.46%said second-quarter sales totaled $1.17 billion, up from $1.09 billion in the same period last year. The company had a wider loss of 21 cents per share, compared with 3 cents per share last year. Adjusted losses were 8 cents per share. The FactSet consensus was for revenue of $1.15 billion and a loss of 8 cents per share.

>>> Original Source <<<