Analyst: Under Armour Isn't Cool And It Needs To Be

Sam Poser of Susquehanna has a simple theory to explain Under Armour Inc's UAA woes: the company's products aren't cool anymore.

Speaking as a guest during CNBC's "Halftime Report", the analyst pointed out that Nike Inc's NKE line of Michael Jordan retro shoes are fashion and lifestyle items as opposed to Under Armour's shoe line, which consists merely of "on court" items with very little choice for consumers to wear "to look cool."

The lack of the coolness factor helped contribute to the company's poor earnings report and disappointing guidance, which contributed to the stock's 25 percent plunge.

In other words, the analyst suggested Under Armour's core client base wears head to toe Under Armour items on the football field but changes to Nike apparel and shoes - which is a problem.

"The problem is that cool factor has to be organic and they have to be fast at doing it," the analyst explained. "But if they are hasty, they can blow themselves up. We saw that years ago with brands like FILA, Tommy Hilfiger and Ralph Lauren Sport. We saw this happen so they are in a very delicate situation having to do something quickly, but having to do it within the framework of the brand and make themselves cool."

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Posted In: Analyst ColorCNBCSportsAnalyst RatingsMediaGeneralApparelFast Money Halftime ReportSam PosershoesShoes CompaniesSusquehanna
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