Courtesy of Citybizlist – The healthy lifestyle is all the rage these days — a trend that fitness apparel companies are taking to the bank. Two of the biggest winners in this space include Under Armour (NYSE: UA ) and lululemon athletica (Nasdaq: LULU ) . As the summer heats up, so do these sporty stocks. Let’s take a look at which is a better buy today and what the future holds for these retail rivals.
This athletic gear company is off to a sprinting start this year. Last week the stock hit a 52-week high after its board approved a 2-for-1 stock split. For current shareholders, the news means they will have twice as many shares after the split, although the value of their stake will stay the same. Shares of Under Armour are up about 50% in 2012.
One reason for the stock’s success is that the Baltimore-based company continues to pump out products that consumers love. In fact, Under Armour is aggressively pushing into the athletic footwear business in hopes of better competing with sports performance giant Nike (NYSE: NKE ) . However, the effort has been slow to gain traction despite the millions upon millions of dollars Under Armour spends for celebrity endorsements.
Meanwhile, Nike dominates the shoe segment with tech tie-ins like the company’s recent Nike+ FuelBand. While it’s important that Under Armour expand its product offerings to include new categories, I don’t see it stealing significant market share from Nike in the sneaker arena anytime soon.
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