Diamonds and Dogs
Under Armour (UAA) shining brightly. The third-largest sportswear maker in the United States is up a whopping 25% following better than expected earnings. Under Armour has closed stores, cut jobs and rolled back promotions to bolster profit margins as it tries to recover from a bruising fight for market share with bigger rivals Nike and Adidas. Cutting costs are great, but longer term the company needs to develop a growth strategy once again.
Hollywood needs to use more Botox. Drug maker, Allergan (AGN) the botox maker, is down 7% to a five month low following earnings. The company actually beat expectations, but revenues fell 3% to $3.91 billion. Botox sales were actually strong up 13% to $879.7 million, but the rest of the company is struggling. Allergan is also trying to reduce their hefty debt load of $25 billion by selling off divisions, but there doesn't seem to be many buyers in this market.