Under Armour: It Appears the Data Breach Has Management Rattled

Summary and Opinion:  Based on our observation of a disclosure subtlety, which we speak to in this report, we believe there is only one conclusion to take-away from it: The Under Armour data breach is so bad, and such a material threat to the company itself, we say it has management rattled.  Investors should be too.

After the close last Thursday, and right after investors had left for a three-day weekend, Under Armour dropped a bomb with the announcement of a sizable data breach.  While news of this nature surely surprised most who follow the company, and timing of the disclosure is indicative of a sleazy disclosure practice, we expect the usual suspects will line up to defend or criticize the company.

In the midst of the pontificating, we also expect a simple, but important piece of the analysis will be overlooked. It’s a disclosure subtlety we expect few will have given much thought to, perhaps because it is in plain sight.

This article is premium content. To continue reading, please Sign In or Join at the top of this page.