To get its ambitious goal of becoming a $10 billion company, under armour shoes knows it should be a footwear powerhouse.
If you pass the company’s last earnings report, that initiative is performing great. Footwear sales within the last quarter of 2016 were up 36%, according to the company’s own metrics.
But that number doesn’t tell the entire story. As outlined by 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 generally accurate. How is the fact that possible? Under Armour’s number includes sales instantly to customers as well as sales to wholesalers, because the FEC requires, as 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. Which 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 includes 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 by and large has shifted to lifestyle and retro styles, of which under armour outlet 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 does not have decades of footwear styles to get inspiration from and it has virtually absolutely nothing to offer within this category.
Under Armour in general is shifting strategy right after a disappointing quarter, admitting which it missed the athleisure trend.