To have its ambitious goal of becoming a $10 billion company, under armour shoes knows it will have to develop into a footwear powerhouse.
When you pass the company’s last earnings report, that initiative is performing great. Footwear sales in the last quarter of 2016 were up 36%, in accordance with the company’s own metrics.
But that number doesn’t tell the whole story. Based on another number by industry analysts at NPD Group, the sales of Under Armour’s footwear actually fell 20% in that same period.
These numbers are both accurate. How is the fact that possible? Under Armour’s number includes sales instantly to customers and also sales to wholesalers, as being the FEC requires, even though the NPD number measures actual sales to consumers.
The discrepancy is explained by the fact that under armour store australia sold a great deal of shoes to retailers, but those retailers couldn’t move them. Which means inventory piled up, causing problems for retailers and necessitating discounting, industry analyst Robin Lewis writes on his website The Robin Report.
That’s not great news for less than Armour’s star-powered footwear business, which includes seen sluggish development in its models endorsed by all-star basketball player Steph Curry. Basketball footwear sales industry-wide were down about 20% in 2016.
The athletic shoe industry in general has moved to lifestyle and retro styles, which under armour shoes melbourne has limited offerings. NPD analyst Matt Powell called retro styles “the 15dexjpky player inside the athletic footwear market” growing at 29% through October of 2016. Unlike Adidas and Nike, Under Armour does not have decades of footwear styles to attract inspiration from and possesses virtually absolutely nothing to offer within this category.
Under Armour overall is shifting strategy after having a disappointing quarter, admitting which it missed the athleisure trend.