In order to achieve its ambitious goal to become a $10 billion company, under armour shoes knows it will need to become a footwear powerhouse.
If you go by the company’s last earnings report, that initiative is doing great. Footwear sales over the last quarter of 2016 were up 36%, in accordance with the company’s own metrics.
But that number doesn’t tell the full story. Based on another number by industry analysts at NPD Group, the sales of Under Armour’s footwear actually fell 20% during that same period.
These numbers are generally accurate. How is possible? Under Armour’s number includes sales directly to customers as well as sales to wholesalers, as the FEC requires, even though the NPD number measures actual sales to consumers.
The discrepancy is explained because under armour outlet australia sold a whole lot of shoes to retailers, but those retailers couldn’t move them. It means inventory piled-up, causing difficulties 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 has seen sluggish increase 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 as a whole has shifted to lifestyle and retro styles, which under armour outlet melbourne has limited offerings. NPD analyst Matt Powell called retro styles “the 15dexjpky player within 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 draw in inspiration from and possesses virtually nothing to offer in this particular category.
Under Armour as a whole is shifting strategy following a disappointing quarter, admitting that this missed the athleisure trend.