High-flying growth stocks were crushed on Friday, which is why Jim Cramer decided to highlight the high-growth company Under Armour.
Under Armour is the innovative apparel company that reported a strong quarter last week. This was good news for the stock, as it had been slammed, along with the rest of the retail cohort for the past few months.
The news of the quarter sent the stock flying to $84 from $68 in a single session, though it pulled back to $76 on Friday.
“I think you need to view this decline as an opportunity to buy a high-quality stock into weakness,” the “Mad Money” host said.
“We’ve got one shot. And the shot better be right.”
While the rest of retail was hammered in the last quarter, partly due to worries about excess inventory left over from a warmer winter — Under Armour found a unique way to stand out.
The company has gained attention for its sponsorship of athletes to help the brand become more recognizable. Jordan Spieth, Tom Brady, Stephen Curry and Cam Newton have all landed under the Under Armour umbrella.
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Cramer spoke with Under Armour Chairman and CEO Kevin Plank to find out the secret to the company’s sauce in identifying athletes to sponsor.
“That’s been the No. 1 question that we’ve gotten …Under Armour has been on an incredible run, and when you put that against the number of athletes we have versus the performance, it’s got to be one of the most bannering years in sports marketing ever,” Plank said.
Plank added that regardless of a warmer winter, he understood that the company still had to produce. Its competitors can shoot commercial three or four times, and have focus groups to evaluate and pick the one they like — but that is not how Under Armour operates.
“We’ve got one shot. And the shot better be right. I’m not saying it’s right all the time, we’ve missed,” Plank said.
Ultimately, Plank instills the concept that the harder the company practices, the luckier it gets. He knows that its athletic sponsorships have a lot to do with the luck it has had, but they will continue to keep working to get things right the first time.