Nike Rival Under Armour Wants To Open Shop In China

American sports equipment brand

Sales in the second quarter are still strong, and the company will raise its annual revenue expectations and lock China into the latest development market.

This signal indicates that Under Armour will compete directly with Nike in China.

According to the company's second quarter earnings report, by June 30th, group net profit fell 16.5% to 14 million 800 thousand US dollars from last year's US $17 million 700 thousand, and earnings per share dropped from US $0.08 to US $0.07.

Despite a downward trend, earnings per share are still higher than analysts' expectations of $0.02.

Total revenue rose 28.5%, from $609 million 700 thousand to $783 million 600 thousand, and inventories rose 26.3% to $836 million 600 thousand over the same period.

After the announcement, share prices soared 7.34% to 95.93 dollars, and the market value exceeded 20 billion dollars.

By category, the exposure of basketball shoes of Stephen Curry, the National Basketball Association's most valuable player, helped boost footwear products by 40.2% to 153 million 600 thousand dollars, while clothing sales remained strong, rising 22.7% to 515 million 300 thousand dollars, and accessories category increased by 38.6% to 83 million 40 thousand dollars.

This quarter, the company has added more than one athlete to promote sales, such as the professional golfer's most popular professional player.

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Among them, the income of sports shoes surged by 40%, easily surpassing the performance of clothing and accessories.

As footwear is generally regarded as the most difficult part of the clothing business, the success of Under Armour has been recognized, and footwear is also one of the most important markets for its competitor Nike.

In addition, group shareholders agreed to invest globally in Brand House stores and its Connected Fitness platform.

Kevin Plank, chairman and chief executive officer, said the company plans to make adjustments to the store portfolio this year, such as the Brand House will increase to 100 stores from 73 stores last year.

Brand House opened 18 stores in the second quarter.

In the third quarter, shops are mainly targeted at Asia, of which 85% of new stores will be in the region, and the most concentrated shops will be in China.

Under Armour Inc. spent $650 million in February to acquire MyFitnessPal and Endomondo two sports community applications, and expanded its new e-commerce website to Thailand, Austria, Ireland, Belgium and Portugal in the current quarter.

And Connected Fitness Internet fitness business revenue increased by 147.8%, from $5 million 500 thousand to $13 million 600 thousand.

In the conference call, chairman and chief executive officer.

Comparing the establishment of an online sports community application, "under the uniform or equipment of athletes, develop an equipment that can enhance the performance of their athletes".

According to the data, MyFitnessPal and Endomondo have more than 130 million registered users in two sports communities.

The group adjusted its annual revenue forecast to $3 billion 840 million, up from $3 billion 780 million previously expected and $38.3 expected by analysts.

The scope of operating profit has narrowed to 405 million -4.08 billion dollars from the previous 400 million -4.08 billion dollars.

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 the history of this group.

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

Just last week, the former Nike sports director Terdema Ussery switched to Under Armour, the president of sporting goods department. In the four years since 1993, Ussery has been president of Nike sports department, supervising and CO ordinating marketing, advertising, brand management and brand cooperation.