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    Adidas Has To Return To Second Seats In The United States. Andrea Has To Slow Down.

    2016/10/27 14:36:00 57

    AndrewUSABrand Strategy

    Under Armour released its 2016 quarter third quarter earnings report.

    This is the lowest growth season for the company in the past six years - the main reason is that the pace of the US brand in its largest regional market is slowing down.

    Slowing down may also mean another thing. Adidas has returned to second seats in the United States.

    The company's share price fell 14% to 32.6 dollars, while the brand's overall stock price fell 31% in the past 12 months.

    This quarter,

    Under Armour

    Net revenue grew 22% to $1 billion 470 million, of which the US market grew 16% in the third quarter, and the company reiterated its annual revenue forecast of $4 billion 925 million.

    It is reported that the main reason for the decline in sales of Under Armour in the United States is that the Sports Authority, a local sporting goods chain, has closed down.

    As a result of the failure of Under Armour retail end, the gross profit margin of the brand dropped from 48.8% to 47.5% in the quarter, and many of the discount sports products originally sold on Sports Authority were hoarded, so the company had to increase sales promotion efforts.

    In a later conference call, Under Armour's CEO Kevin Plank stressed, "this does not mean that we are losing money and we are moving forward."

    He further pointed out that today's sports apparel industry is facing fierce competition, and that the recent signing of a number of university sports equipment sponsorship contracts dragged down the marketing costs of the quarter.

    Plank believes that the company is focusing on three things: "rapid development" and strengthening

    Retail operation

    Sell more shoes.

    Thanks to the strong demand of new Slingform, Bandit 2 and training clothing, the company's overall revenue growth can still be maintained above 20% of the standard line.

    Among them,

    footwear

    Sales increased by 42% to 279 million dollars, mostly due to the appeal of NBA star Stephen Currie.

    The 3 generation of NBA will also be on the market soon after the start of the new season.

    Especially in the emerging markets such as the Greater China region, CEO Kevin Plank said in a statement: "as the presence of Curie, brands remain strong and resonate in emerging markets."

    In the 9 month, the Chinese Bank of Kuri is an important marketing activity of the brand this year. In the past year, Under Armour has opened more than 100 new stores in China.

    At the same time, as a leading high-end professional sports brand, Under Armour is also trying to expand its territory. In the third quarter of the two major events for the company, except for the completion of a counterattack in Rio Olympic Games, Phelps's UAS series (Under Armour Sportwear), which was released in New York fashion week, announced that the brand entered the field of sports and casual wear formally.

    Here, not only Nike and Adidas occupy the market, it may also need to compete with the fast fashion brands such as UNIQLO and H&M.


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