To experience its ambitious goal of becoming a $10 billion company, under armour shoes knows it must become a footwear powerhouse.
When you pass the company’s last earnings report, that initiative has been doing great. Footwear sales during the last quarter of 2016 were up 36%, based on the company’s own metrics.
But that number doesn’t tell the entire 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 accurate. How is the fact possible? Under Armour’s number includes sales straight to customers along with sales to wholesalers, because the FEC requires, as the NPD number measures actual sales to consumers.
The discrepancy is explained because under armour shoes australia sold a whole lot of shoes to retailers, but those retailers couldn’t move them. Which means inventory piled up, causing trouble for retailers and necessitating discounting, industry analyst Robin Lewis writes on his website The Robin Report.
That’s not great news for Under Armour’s star-powered footwear business, that has seen sluggish rise 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, that under armour shoes melbourne has limited offerings. NPD analyst Matt Powell called retro styles “the 15dexjpky player in the athletic footwear market” growing at 29% through October of 2016. Unlike Adidas and Nike, Under Armour lacks decades of footwear styles to draw inspiration from and contains virtually absolutely nothing to offer in this category.
Under Armour in general is shifting strategy after having a disappointing quarter, admitting that it missed the athleisure trend.