Why Under Armour Shares Are Rising

Under Armour Inc UA UAA shares are trading higher by roughly 4.6% to $6.38 Friday morning. Shares of retail and athletic apparel stocks are trading higher. Strength may be in sympathy with Nike Inc NKE, which gained after reporting first-quarter financial results.

Why It Matters

Under Armour directly competes with Nike in the athletic apparel and footwear market. When Nike, a key rival, reports strong earnings, it suggests that Under Armour is also operating in a market with robust demand. Investors may see this as an opportunity for Under Armour to capture its share of the market and drive sales.

Nike and Under Armour both have strong brand recognition. Positive results from Nike can reflect favorably on Under Armour's brand perception, as investors may see it as a company with similar appeal and the potential for strong sales.

What Happened With Nike Earnings?

Nike said fiscal first-quarter revenue increased 2% year-over-year to $12.939 billion, which missed the consensus estimate of $12.98 billion.

The athletic footwear and apparel company reported quarterly earnings of 94 cents per share, which beat analyst estimates of 74 cents per share...Read More

According to data from Benzinga Pro, UA has a 52-week high of $11.42 and a 52-week low of $5.74.