(An Under Armour running shoe display featuring Ironman Triathlete Chris McCormack.Rick Maiman/AP)
Under Armour posted better-than-expected earnings in the first quarter of 2017, but it wasn’t all good news for the company.The important thing:nobody is buying Under Armour shoes anymore.
Shoe sales-A main statistic for the company for future growth as it tries to grow into a lifestyle brand-have landed to a virtual halt,and there posting 2% increase in sales this year.
“We don’t like it, and we don’t accept it,” Under Armour CEO Kevin Plank told analyst asking about statistic number for revenue growth on the earnings conference call.Last year Under Armour’s rise as a shoe powerhouse looked bright.
Its signature line with basketball star Steph Curry was so good in sales.But after the company release the signature Curry 3 last year sales of Under Armour shoes was drastically going down,and customer who buying basketball shoes basketball shoes started to fizzle.Time will tell if Under Armour can return its shoe business to the growth of a year ago,to their customers.
If Under Armour wants to compete with its chief rival and absorb some of the lifestyle sportswear category, they needs a strong shoe business.While Under Armour`s shoes are focus on function and sport,most of the other company shoe models in the US are offering sports lifestyle sneakers-shoes with history like the Nike Air Force One,Adidas Superstar or Adidas Stan Smith.
(The Under Armour Steph Curry 3.Facebook/Under Armour)
Running shoes and cleats have a solid sales for the company last quarter according to Plank,but those shoes are specific for limited consumers,and share a small part of the market for difference to lifestyle.Other companies like Adidas and Nike are more representative and have more percentage of sales when compared with Under Armour.Clothes and shoes from the rivalry brands are often worn by fashion icons and celebrities and sometimes on the covers of magazines.Sometimes Under Armour does not have the same cachet like Nike and Adidas.Even with its two biggest star Dwayne “The Rock” Johnson and basketball player Steph Curry,Under Armour is working slow on the world market.
Plank gestured to products coming down the pike this year that he thinks will give Under Armour a foothold in this segment,but we will wait to see what will be the new products and how customers will react to them.