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Spieth last year signed a 10-year agreement to wear the No. 2
U.S. sportswear maker's golf shoes and other clothes, and his
collapse in Sunday's final round appeared to be partly behind
the drop in the company's shares.
Also hurting the stock, Morgan Stanley said in a note that Under
Armour, a leader in "athleisure," appears to be losing market
share for the first time in three years.
But Spieth's loss is unlikely to dent Under Armour's growth
momentum and the stock's selloff may reflect the sports
preferences of many on Wall Street, said BB&T analyst Corrina
Freedman.
Under Armour has signed endorsement deals with a number of
high-flying professional athletes, which have helped elevate its
profile and boost sales.
Impressive performances by two other major Under Armour
endorsers - National Basketball Association point guard Stephen
Curry and National Football League quarterback Cam Newton - have
not sparked major rallies in the company's stock.
Under Armour also sponsors English soccer club Tottenham
Hotspur, which is second in the Premier League.
"More Wall Street traders watch golf than watch basketball, it
would appear," Freedman said.
"Steph Curry is having a phenomenal season, but the stock
doesn't move on significant advances by Steph Curry. And Cam
Newton in the Super Bowl didn't have much of an impact either."
In a research note, Morgan Stanley analyst Jay Sole wrote that
he believes that Under Armour's core U.S. wholesale apparel
growth has slowed.
Under Armour has been quick to cash in on the new trend of "athleisure,"
a mash-up of athletic and casual clothing growing popular even
in formal settings like offices, which has helped it maintain a
revenue growth momentum of more than 20 percent for 23 straight
quarters.
Wall Street expects Under Armour's revenues for the March
quarter to jump 29 percent. The company is due to report its
results on April 21.
The company's stock was down 5.77 percent at $41.03 in late
Monday afternoon trading on the New York Stock Exchange.
(Reporting by Noel Randewich)
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