In a dynamic day for the financial markets, a select group of companies defied broader trends, experiencing significant surges in their stock prices and emerging as today's top gainers. NXP Semiconductors (NASDAQ: NXPI), Brinker International (NYSE: EAT), Gildan Activewear (NYSE: GIL), Sea Limited (NYSE: SE), On Holding AG (NYSE: ONON)
Consumer discretionary businesses are levered to the highs and lows of economic cycles. This sensitive demand profile can cause discretionary stocks to plummet when macro uncertainty enters the fray,
and over the past six months, the industry has shed 4.1%. This drop was disappointing since the S&P 500 climbed 5.4%.
A number of stocks jumped in the afternoon session after the latest Consumer Price Index (CPI) report showed inflation holding steady, bolstering investor optimism for a potential interest rate cut by the Federal Reserve. The data, which revealed that inflation remained at 2.7% for the year ending in July, was seen as a positive sign by investors. This stability increases the likelihood that the Federal Reserve might lower interest rates at its upcoming September meeting. Lower interest rates can stimulate the economy by making borrowing cheaper for both consumers and businesses, which often translates into higher consumer spending. This is particularly beneficial for the Consumer Discretionary sector, which includes companies selling non-essential goods and services like apparel, travel, and electronics.
Athletic apparel company Under Armour (NYSE:UAA) met Wall Street’s revenue expectations in Q2 CY2025, but sales fell by 4.2% year on year to $1.13 billion. On the other hand, next quarter’s revenue guidance of $1.31 billion was less impressive, coming in 4.1% below analysts’ estimates. Its non-GAAP profit of $0.02 per share was in line with analysts’ consensus estimates.
The company's Q2 forecast fell short of expectations, causing its shares to plummet 18% on Friday. Some analysts say investors have an overtly bearish view.
Shares of athletic apparel company Under Armour (NYSE:UAA)
fell 22.4% in the morning session after the company reported second-quarter results and issued a significantly weaker-than-expected outlook for the third quarter. The sportswear maker's revenue for the second quarter came in at $1.13 billion, which met Wall Street's expectations but represented a 4.2% decline year-over-year. However, its adjusted earnings per share of $0.02 missed consensus estimates. The main concern for investors was the bleak guidance for the upcoming quarter. Under Armour projected third-quarter revenue of $1.31 billion, falling 4.1% short of analyst forecasts. More dramatically, the company guided for adjusted earnings per share of just $0.02 at the midpoint, a stark contrast to the consensus estimate of $0.26.
Under Armour stock sinks after missing Wall Street estimates with first-quarter fiscal 2026 results of $1.13 billion in revenue and $9 million in adjusted net income.
Under Armour's Q1 fiscal 2026 earnings miss estimates, with weak Q2 outlook sparking a 15.7% pre-market stock plunge. Revenue and EPS fall short amid ongoing demand challenges.
Athletic apparel company Under Armour (NYSE:UAA) met Wall Street’s revenue expectations in Q2 CY2025, but sales fell by 4.2% year on year to $1.13 billion. On the other hand, next quarter’s revenue guidance of $1.31 billion was less impressive, coming in 4.1% below analysts’ estimates. Its non-GAAP profit of $0.02 per share was in line with analysts’ consensus estimates.
Wall Street’s bearish price targets for the stocks in this article signal serious concerns.
Such forecasts are uncommon in an industry where maintaining cordial corporate relationships often trumps delivering the hard truth.
