Consumers love Under Armour (NYSE:UA). The company makes fantastic products, employs some of the most exciting young stars in sports like Bryce Harper and Steph Curry, and has be one of the most amazing growth stories in retail over the past decade. Sales are likely to approach $5 billion this year - a rather impressive mark after the company crossed the $2 billion mark in 2013.
The stock has been "overvalued" by conventional metrics for much of my investing career, and the recent pullback may look like a buying opportunity. That said, Under Armour's recent trend of high-profile endorsement deals, expensive strategic bets, and margin compression concern me greatly. Let's address these concerns and determine whether recent investments are a positive catalyst for future growth, or an anchor that will weigh down investors' returns in coming years.
