3 Sporting Apparel Stocks Getting Slammed Today

HIBB cratered to a 14-year low after falling short of quarterly sales expectations

Emma Gilkey
Aug 18, 2017 at 10:42 AM
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U.S. stocks are struggling again this morning after Thursday's 274-point loss for the Dow. Among the stocks in focus today are sporting goods and apparel names, including Foot Locker, Inc. (NYSE:FL), Hibbett Sports, Inc. (NASDAQ:HIBB), and Under Armour Inc (NYSE:UAA).

On the heels of dismal earnings from Dick's Sporting Goods Inc (NYSE:DKS) earlier in the week, the sector is catching heat from another batch of lackluster quarterly results -- prompting John Zolidis of Quo Vadis Capital to warn clients that "Athleisure is over... We predict several years of pain for the companies that compete in this arena." Here's a quick look at what's moving shares of FL, HIBB, and UAA today.

Foot Locker Gaps Lower on Earnings Miss

Foot Locker stock is spiraling lower after falling short of Wall Street's second-quarter profit and revenue estimates. FL stock has plunged 23.9% to trade at $36.31, and earlier set a new four-year low of $35.25. The shoe and apparel retailer has now lost almost half its value year-to-date.

Heading into the report, options players appeared to be bracing for a possible post-event sell-off. FL stock's Schaeffer's put/call open interest ratio (SOIR) of 1.37 ranks in the 99th percentile of all other ratios from the past 12 months. This suggests that near-term option traders have rarely been more put-heavy in the past year.

HIBB Stock Hits 14-Year Low on Soft Sales

HIBB stock reported its own disappointing earnings this morning, with second-quarter sales of $188 million falling short of analysts' expectations -- and same-store sales dropping by a steeper-than-forecast 11.7%. HIBB is trading down 14.8% at $9.80, and fresh off a new 14-year low of $9.40.

Bears are likely cheering today's steep sell-off in HIBB shares. Although short interest dropped nearly 17.6% in the two most recent reporting periods, it still accounts for a lofty 18% of HIBB's available float. Given the big post-earnings decline, though, the stock is temporarily short-sale restricted.

Heavily Shorted UAA Sinks Alongside Sector Peers

Under Armour stock is falling in step with its sector peers, down 3.4% at $17.20. Earlier this morning, the shares tagged a new four-year low of $17.03, with UAA unable to capitalize on a bullish endorsement published in Barron's yesterday.

The stock's weakness could be due to the fact that short sellers are in the driver's seat when it comes to Under Armour. Short interest currently represents nearly 30% of the stock's float, or 12.1 times its average daily trading volume.

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