In order to achieve its ambitious goal to become a $10 billion company, under armour shoes knows it must become a footwear powerhouse.
If you go by the company’s last earnings report, that initiative has been doing 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 entire 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 both are accurate. How is the fact possible? Under Armour’s number includes sales directly to customers as well as sales to wholesalers, as the FEC requires, while the NPD number measures actual sales to consumers.
The discrepancy is explained because under armour store australia sold a great deal of shoes to retailers, but those retailers couldn’t move them. That 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 less than Armour’s star-powered footwear business, that has 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 as a whole has shifted to lifestyle and retro styles, in which under armour outlet melbourne has limited offerings. NPD analyst Matt Powell called retro styles “the 15dexjpky player from 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 it has virtually nothing to offer with this category.
Under Armour overall is shifting strategy after a disappointing quarter, admitting which it missed the athleisure trend.