Under Armour And Nike Compete For Female Clothing Market

According to the latest news from the US media, Under Armour has announced that it will enter the women's clothing market outside sportswear.

This market is the market most valued by rival Nike.

It is worth mentioning that after a series of marketing, Nike continues to increase the number of female consumers. Recently, the company launched the biggest promotional campaign in this history for this group.

It seems that Nike will never let the rising stars easily shake their own hegemonic position.

According to the financial report, the net profit of Under Armour fell to US $11 million 700 thousand from the same period last year to US $11 million 700 thousand in the first quarter of March 31, 2015, and the diluted earnings per share dropped from US $0.06 to US $0.05.

Share price performance in the first quarter is consistent with analysts' forecasts.

Net income rose 25.5% to $804 million 900 thousand, compared with $641 million 600 thousand in the 2014 fiscal year.

In February this year, the brand acquisition of Endomondo and MyFitnessPal jointly created a fitness community, making the first quarter profit of US $8 million 400 thousand, which is two times higher than that of US $4 million in the same period last year.

At a constant exchange rate, the profit increased by 27.1%.

The chairman and chief executive of Kevin Plank commented: "since February, the number of registered users has increased to 10 million, and the total number of registered users has exceeded 130 million.

We have opened a 300 thousand square foot brand store in Chicago's magnificent Avenue, and the first stores in Brazil and the Middle East have been opened, all of which contributed to the growth of global sales of 74%.

Clothing sales rose 20.9% in the first quarter to $555 million 500 thousand, and footwear volume increased by 41.1% to 161 million dollars.

Authorized revenue increased by 32.2% to $16 million 900 thousand.

In contrast to Nike's earnings report, Nike net income increased by 23% to $655 million in the 3 months ended November 2014, reflecting strong gross revenue growth and gross margin expansion.

Total revenue increased by 15% to $7 billion 400 million.

Nike brand sales increased by 17% to US $7 billion, and all kinds of products grew except golf ball products.

Driven by the continuous growth of the existing direct distribution market and the pformation of Europe and Asia, Converse's total revenue increased by 24% to 434 million US dollars.

However, Nike revealed that its main western European market will increase by 13% in the future, but lower than expected 15%.

In the first eight months of last year,

Sales increased by 20% to $1 billion 200 million, the first time to surpass Adidas ($1 billion 100 million in sales, down 23% from last year), becoming the second sports brand in the US.

The sales figures of US $1 billion 200 million are far less than that of Nike's $8 billion 900 million in the same period, but the growth rate of Under Armour in the past three years is two times that of Nike.

Even in the S & P 500 stocks, as of last August, the best performing 40 stocks, Under Armour also rose by 57.85% of the third, becoming the most popular consumer goods industry stocks.

However, China

Consumers' awareness of Under Armour is still limited.

Compared with global layout

Sales of Adidas and Under Armour are highly dependent on the US market.

At present, 94.1% of its revenue comes from the North American market.

The pace of the expansion of the international market is slow.

In China, it was not until April 2011 that Under Armour opened its first exclusive store in Shanghai port Hui square.

Up to now, there are only 18 stores in China, which are basically commercial landmark buildings in China's first tier cities.