To get its ambitious goal to become a $10 billion company, under armour outlet knows it should develop into a footwear powerhouse.
When you pass the company’s last earnings report, that initiative has been doing great. Footwear sales over the last quarter of 2016 were up 36%, based on the company’s own metrics.
But that number doesn’t tell the whole story. According to another number by industry analysts at NPD Group, the sales of Under Armour’s footwear actually fell 20% during that same period.
These numbers both are accurate. How is the fact possible? Under Armour’s number includes sales right to customers and also sales to wholesalers, as being the FEC requires, as the NPD number measures actual sales to consumers.
The discrepancy is explained because under armour outlet australia sold a great deal of shoes to retailers, but those retailers couldn’t move them. This 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 overall has moved to lifestyle and retro styles, that under armour sydney 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 lacks decades of footwear styles to attract inspiration from and has virtually nothing to offer within this category.
Under Armour as a whole is shifting strategy after a disappointing quarter, admitting it missed the athleisure trend.