Athletic apparel maker Under Armour (NASDAQ: UA) has been heroic of late, with strong earnings on its increasingly ubiquitous polyester tough-guy sports apparel, and sneakers that defied the crushing consumer spending slowdown.
But even tough products can crack. Apparently that was the fault the U.S. Consumer Products Safety Commission found with Under Armour's athletic cups when it issued a recall for over 200,000 protective cups bearing Under Armour's logo. Manufactured in China, the cups could shatter if hit, potentially resulting in serious injuries to cup-wearer.
The financial impact of the recall will not be small, either -- Under Armour will issue $20 vouchers good for future purchases of Under Armour gear, a potential new cost item of $4 million. That's an expensive way to buy added protection, folks. Ouch!
Alex Salkever is the Director of Research at Piqqem.com, a stock prediction community powered by the wisdom of crowds.
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Reader Comments (Page 1 of 1)
4-30-2009 @ 12:22PM
Doug T said...
Oh Oh the boys aren't going to like this...
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4-30-2009 @ 3:29PM
jonathon said...
Most people will spend over $40 when using their $20 voucher on UA products, so that $4 million cost estimate is probably very high. Some people will end up losing or not even using the voucher too.