As one of the hottest stock in 2015, Under Armour (NYSE: UA) officially announced a partnership with Dwayne "The Rock" Johnson on Monday. Johnson is a dynamic actor, producer and and semi-retired professional wrestler, signed with World Wrestling Entertainment (NYSE: WWE). According to the press release distributed on Monday, Johnson will work hand-in-hand with the innovative performance brand to create a range of products across footwear, apparel and accessories as well as support Under Armour's Connected Fitness initiatives.
The press release also stated that "Johnson will play an integral role in the promotion of Under Armour's Connected Fitness platforms including the recently debuted Under Armour HealthBox™ and Record™ application. Additionally, the brand will develop product capsules including footwear, apparel and accessories inspired by the films Johnson is currently working on. The first product capsule will feature a Rock-inspired backpack and duffle bag that will launch on UA.com and be available in select Brand Houses in the next few weeks."
Besides the announcement, the company is expected to report the fourth-quarter 2015 earnings on Thursday this week before open, with a conference call scheduled for 8:30 am EST. In the last four quarters, Under Armour has registered positive earnings surprises with an average beat of 11.225%, successfully sending stock up. However, most analysts believed that it is unlikely to beat earnings estimates this quarter due to the increasing costs related to the acquisitions of two new Connected Fitness businesses and the foreign currencies headwinds. The new cooperation with Johnson may add new vitality to the company`s development. How things are shaping up for this announcement is still to be seen.