What Causes The Growth Of UA To Be Shattered?

According to the world clothing shoes and hats net, the second largest sporting goods manufacturer in the United States is Under Armour Inc. NYSE:UA.

The growth myth is completely shattered, and the company's disclosure is inferior.

After the quarterly results, the pre market share price plummeted 29%, while announcing the resignation of the chief financial officer.

In the four quarter of December 31, 2016, Andrew recorded $1 billion 308 million 100 thousand in revenue, representing a 11.7% increase over the 1 billion 170 million 700 thousand quarter of the four quarter of 2015, far below the 1 billion 410 million expected Zacks (US rating agency), and the lowest growth rate in eight years.

However, its core North American market increased by only 5.9% to 1 billion 75 million 300 thousand US dollars, compared with 1 billion 15 million US dollars in the same period in 2015, which is far below the average 24% increase in 2013.

Andrew blamed the slowdown in sales on fierce market competition and economic slowdown.

In the fourth quarter of fiscal year 2016, Andrew net profit recorded a weak decline of 0.7% to $104 million 900 thousand, compared with $105 million 600 thousand in the same period last year, and earnings per share also fell to 0.23 US dollars from 0.24 US dollars in the same period last year, which is also worse than Zacks's expected $0.25.

The gross profit margin of the company plummeted by 320 basis points to 44.8%, and the operating profit margin of the company also plummeted by 250 basis points to 12.7%, and operating profit fell 6.1% to 166 million 800 thousand US dollars, compared with 177 million 600 thousand US dollars in the same period last year.

The wholesale and direct business of Andrew mark recorded an increase of 5% and 23% to $742 million and $518 million respectively, although the international business grew from 55.2% to 215 million 300 thousand US dollars in the fourth quarter.

By category, fourth quarter group

Footwear and accessories business increased by 7.4%, 36.4% and 7.4% to $928 million 500 thousand, $227 million 700 thousand and $104 million 300 thousand respectively.

Andrew expects the current fiscal year to earn $5 billion 400 million, which means the 11%-12% growth rate is the lowest since the company went public in 2005, and the fixed exchange rate increased by 12%-13%, far below the expected $6 billion 150 million by Thomson Reuters.

In the three quarter, the group expected 2017 and 2018 fiscal year, the growth rate will drop to 20%-23%.

In fact, the market has seen more than a year's mood.

As early as November 2016, Dick Johnson, the group's wholesaler and chief executive officer of Foot Locker Inc. NYSE:FL (NYSE:FL), the world's largest sports shoe retailer, pointed out at the analysts' meeting after the group's earnings report that the two models started slowly in October 27th compared with the Curry 3.

Andemar, the spokesperson for the NBA team, Jinzhou basketball champion Stephen Curry, has been a mainstay product of the footwear business developed by the group in recent years. Stephen

However, as the category of functional basketball is grabbed by the category of running, training and leisure fashion, even the basketball hegemony Nike group can not be immune to the impact of the basketball category entering the slowing down cycle. Last year, the wholesale sales of basketball products, which accounted for 5% of the total income of the group, recorded a 1% decline, not to mention the single product of Andemar.

The exception is the Jordan brand, which belongs to Nike group. Last year, its wholesale sales achieved a strong growth of 18%, and nearly half of its brand has come from retro style products.

The weakening of Andemar's momentum provided Adidas group with room for growth.

According to market research firm The NPD Group, the three quarter Adidas brand has taken back the position of the second major sports brands in the US market, and pulled down the rival Andemar, who was overtaken in the 2014 trough.

NPD pointed out that Adidas's share in the US sports shoes market reached 9% in the three quarter, which was better than the same period in 2015.

In the year of 2016, Andrew recorded $4 billion 828 million 200 thousand in revenue, an increase of 21.8% compared with $3 billion 963 million 300 thousand in 2015, or even lower than the group's own expected $4 billion 925 million. During the period, the wholesale and retail business of the group increased by 19% and 27% to 3 billion 100 million US dollars and 1 billion 500 million US dollars respectively, of which retail receipts accounted for 31%.

According to the region, the North American income rose by 16% to $4 billion 8 million 200 thousand in 2016, which was $3 billion 455 million 700 thousand in the same period in the previous year. The business profit in the North American market fell by 10.8% to 411 million 300 thousand US dollars in the non expiry period, and $461 million in 2015; the international market period was 741 million US dollars, compared with 454 million 200 thousand US dollars in the same period of 2015, with an increase of 416.1% to $45 million 867 thousand, and $8 million 887 thousand in the same period in 2015.

By category, in 2016, the business growth of Andrew clothing, footwear and accessories business was 15.3%, 49.5% and 17.2% to 3 billion 229 million 100 thousand dollars, 1 billion 13 million 500 thousand US dollars and 406 million 600 thousand US dollars respectively.

In the whole year of 2016, the growth rate of 11.2% was increased to 258 million 700 thousand US dollars in the profit period, and 232 million 600 thousand US dollars in the same period in 2015. The gross profit margin dropped 160 basis points to 46.5% 46.5% yuan, and the operating profit rate dropped 160 basis points to 8.7%.

In view of the extreme bad fourth quarter performance and current financial year expectations, the market believes that the group's high growth period has ended.

In September 2016, Tang Xiaotang, founder of No Agency, a luxury goods and clothing retailing industry research consulting and investment organization, predicted that Andrew would follow the footsteps of Michael Kors in the sports industry, like the latter in the field of light luxury goods. The altar, which was praised by analysts as a result of its rapid growth, was spurned by the market as quickly as it grew and slowed down even at the same speed.

As the results were released, Andrew announced that Chip Molloy, the chief financial officer of the group, was stepping down, and the latter was only about 1 years old. His position will be replaced by the senior vice president, David Bergman, for the time being in February 3rd.

Andemar, founder, chairman and chief executive of Kevin Plank, said in its earnings report that the group has achieved record annual sales, but also acknowledged that the four quarter was full of challenges.

Because of the sharp fall in stock prices, Andemar was eyed by some rights protection companies. Johnson & Weaver, LLP LLP announced the launch of an investigation into Andemar to safeguard shareholders' losses in the group's investments.

In January 29th, Andrew received $25.09, or 1.68%, which has fallen 39% in the past 12 months and 30% in 2016. If it falls into today's decline, it has lost at least 50% in the past year.

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