Fitness financials: Amer Sports schedules Extraordinary General Meeting on shareholder demand, plus Under Armour, Sears
Amer Sports scheduled an Extraordinary General Meeting due to shareholder demand, an analyst downgraded Under Armour's status to "below average", and Sears' default ratings were downgraded to Ba2 from Ba1.
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Amer Sports schedules Extraordinary General Meeting on shareholder demand
Amer Sports, parent of Precor, said it is holding an Extraordinary General Meeting on April 28 in response to shareholder Novator Finland Oy’s demand that the meeting be convened. No agenda details were released.
The meeting will be held at Amer’s headquarters in Helsinki, Finland. The invitation to the meeting will be published on April 7
Analyst downgrades Under Armour
Under Armour (NYSE: UA) saw its status downgraded to “Below Average” from Average on Monday, with a Caris analyst saying that Wall Street’s 2009 projections appear “too aggressive.”
Most analysts polled by Thomson Reuters expect Under Armour to report profit of 82 cents per share and revenue of $798 million. Caris analyst Claire Gallacher said in a note to clients that previous estimates of a 10-percent revenue increase and 6.5-percent growth in earnings per share were too optimistic.
“By contrast, we estimate sales will increase 1 percent and earnings per share will remain relatively flat at 76 cents versus 77 cents reported in 2008,” Gallacher told investors in a research note. Clothing retailers have been hit hard by the recession, and Gallacher said that in 2009 clothing sales could drop 3 percent, while shoe sales could rise 1 percent.
“Given the 75-percent to 80-percent mix of apparel revenue versus footwear and accessories, Under Armour is highly exposed to the apparel segment,” the analyst said.
Sears default ratings downgraded
Moody’s Investors Service lowered Sears Holdings’ corporate family and probability of default ratings to Ba2 from Ba1. According to Moody’s, the downgrade was due primarily to the continuing decline in Sears’ operating performance, which has caused leverage and interest coverage to deteriorate to levels representative of the Ba2 rating category.
“Sears remains challenged in certain product segments, with the macroeconomic downturn impacting even its traditionally solid hardlines business,” said Charlie O’Shea, Moody’s senior analyst.
–Compiled by Wendy Geister
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