Where Is The Andmar Card That Has Been Pformed?

Yesterday was a black Tuesday for UA.

Beijing time August 1st evening.

The two quarter results and annual performance expectations are announced:

Second quarter revenue increased 8.7% to 1 billion 88 million US dollars, in line with market expectations of $1 billion 77 million;

A loss of 3% per share, less than 6% of analysts' expectations;

Reduce annual revenue growth to 9-11%, lower than previously expected by 11-12%.

? cut annual earnings to 37-40 cents per share, and analysts expect UA earnings per share to be 42 cents per year.

By June 30th, over the past 12 months, 33 factory stores and 23 brand stores were closed.

Behind a series of dim numbers, UA launched a restructuring plan to cut 2% of 15000 of the 15000 employees, or 280, and half of them came from the Baltimore headquarters.

Affected by this news, as of August, 1, the U.S. stock closed, UA shares fell 10.38%, to close at $16.23.

In the past 12 months, UA's share price has dropped by nearly 50%.

"We are in a different environment, especially in our largest North American market," CEO Kevin Planck told investors and analysts on Tuesday.

From the two quarter of 2010, the growth rate of UA has been as high as 20%, but since the fourth quarter of last year, the situation has become very different.

In other words, the crisis of UA has appeared since last year.

From 2010 Q2 to last year's Q3, UA's 26 quarter revenue grew by more than 20% year-on-year.

The low tide came from Planck's inappropriate remarks last year.

He thought that "Trump is a pro businessman president and a national treasure", which was strongly condemned by UA spokesperson Stephen Currie and Dwayne Johnson.

UA's share price fell from then on.

The analysis released by Haina international pointed out that Planck's public praise of Trump would lead to UA's failure to develop into a local life style for a long time.

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Although Haina international does not think that UA will lose the endorsement of Curie, "but its spokesperson is so brand CEO, this is not good for business."

NPD group analyst Matt Powell analyzed that young consumers are very concerned about the moral meaning behind every penny they spend.

In order to restore the loss of brand caused by Planck's remarks, UA issued two statements at the time, clarifying some disputes caused by the remarks, and demonstrating the brand's opposition to Trump's immigration policy.

If Planck's remarks indirectly affect the brand image of UA, then mistakes in business strategy will be more critical.

First of all, it is over reliance on basketball shoes.

When Curie was awarded MVP twice, UA undoubtedly won huge investment returns.

Driven by curi, UA

Sales surged, and its footwear products increased by 58% in the two quarter of last year, which helped UA open a gap in the Nike dominated US basketball shoes market, and once surpassed Adidas as the second brand in the US sports shoes market.

To some extent, Curie and UA made each other's achievements.

But when Curie and UA basketball draw the same sign in the consumer's mind, the giant's personal performance can control the stock price of UA.

Obviously, in the past season, Curie did not shine as much as before. The two quarter revenue of UA footwear also fell 2%.

This situation has been staged before.

According to ESPN, UA Dick's largest retail partner, Foot Locker CEO Dick Johnson, said last November that Curie's latest war boots Curry3 was "slightly lower than expected sales".

The news fell 4% even with UA shares.

Although the curry product line accounts for only 5% of UA revenue (about 200 million US dollars), Curie is the most famous and most important spokesperson for UA, and its sales volume is a barometer of UA's share price.

From the successful bet of the UA, a large number of resources have been pferred to the basketball category.

But putting all the eggs in one basket is not a smart move. In addition to basketball, UA needs more growth.

Secondly, UA is still slow to respond to the trend of sports and leisure. Its products are too technical and fashionable for the current sports and leisure style.

Rihanna, who owns Puma, and Adidas signed Kanye West, has won the eye-catching performance in the wake of this trend.

In the first quarter, Adidas's global performance increased by 16% compared with the same period last year, and net income increased by 30% to 455 million euros.

"We need to become more fashionable," Planck said at a conference call after the fourth quarter of last year's earnings announcement. "Consumers want everything, they want to make the product look good and have a good sense of body, you can wear jeans, but there is no problem in wearing fitness."

Wade Bush securities analyst Christopher Svezia said, "the trend of compressing compressed clothing into non technology categories is more obvious. Besides, sports brands with more lifestyle genes are better performing, such as Adidas, Puma, and Nike to some extent."

In other words, we all studied UA to develop compressed garments, but on the basis of this, we added fashion elements to gain more market share.

In September 2015, Planck said for the first time that UA wanted to enter the field of non sports clothing.

At that time, there was no leisure product in the annual revenue of UA 38 billion dollars, while leisure products could help Nike and Adidas contribute nearly 1/4 of sales.

Planck said at that time that the UA sports lifestyle segment would account for more than 1/3 of the company's total revenue. "Our pformation to lifestyle is not to create a new product line or a product line, but to really let the whole company go in this direction."

The leisure product line of UA is expensive.

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He also explained how sports lifestyle matches company strategy: "our brand positioning is first on the sports ground, from left to right to think - professional sports are fixed; sports performance is that you can wear a basketball suit with a pair of jeans; on the right is casual wear, which is also the UAS we launched in autumn; the right side in the middle is our business opportunity, that is, the sports lifestyle we call."

UAS (Under Armor Sportswear) is the leisure product line launched by UA in 2016, including a $1500 waterproof coat, but these new products do not achieve the desired effect of UA. UA acknowledges that she has misread the high-end trend of sports and leisure.

How UA can navigate between the mass market and the high-end market is what we need to learn.

According to Svezia's April statistics, UA's lifestyle sales account for less than 5%, but UA is now increasing this proportion.

"It may take several years for a category to have a significant impact on the company, because relatively basic technology and equipment, lifestyle products require more tests and trial and error.

Whether UA can return to its past glory is uncertain, "Svezia said.

In a conference call on Tuesday, Planck said that UA will focus on five categories of men's training, women's training, running, basketball and lifestyle, and shift from male equipment to male, female and child alike.

This is different from the eight major categories of UA in 2015: team sports, men's training, women's training, outdoor, golf, running, basketball and football.

On the one hand, UA will focus more on developing good training classes and cutting down categories that do not enhance performance.

In the two quarter, UA's clothing revenue increased by 11% to 681 million US dollars, to a large extent, benefiting from the growth of men's training and women's training.

On the other hand, the pformation of UA will pay more attention to fashion elements and highlight women.

Last month, UA announced two news: its Lifestyle (Life Series) was signed with rap group A$AP MOB member A$AP ROCKY, Chinese Taekwondo player and actor Zhang Lanxin became spokeswoman for women training, which is also UA's first Asian global spokesperson.

"We have been able to represent professional sports products, which gives us the opportunity to enter life style. We believe that many users who are attracted by our existing category lack the power to stay on," Planck said. In his view, lifestyle can make these consumers stay.

But in this turn, UA needs to define its position more clearly.

"The brand of UA is still visible, but facts show that UA's brand is not as clear and directional as lululemon and Nike," Anthony Riva, global data analyst at retail companies, wrote in a customer record. "Our customer data show that many people are becoming less clear about what UA stands for, or UA is good at what part of the sports market."

In the process of pforming sports equipment into a broader lifestyle leader, UA has also made changes in the channel.

Starting in March this year, UA began selling products at more than 1000 stores in the middle priced department store Kohl 's.

According to the world clothing and shoe net, Kohl 's shopping center is very popular in the suburbs and middle class female consumers. The most loyal consumers spend 18 times a year on average.

The department store is also famous for its big discount.

But some analysts said that co operating with Kohl 's could undermine UA's long established brand image.

In addition, UA has also worked with DSW (Designer Shoe Warehouse), a discount footwear retail store, to sell UA footwear products in DSW480 stores.

DSW vice chairman and chief merchandise officer Debbie Ferree said at a recent conference call that UA will provide special products to DSW stores.

"I think these cooperation will be very difficult for UA because they need to find new distribution points," said Jeff Van Sinderen, an analyst at B.Riley&Co., in an interview with Footwear News. "This approach is somewhat like a double-edged sword. They need to grow, but if so, it may damage their brand image.

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There is no doubt that the pformation of UA is bound to be difficult, especially in the current sporting goods market.

Nike also announced restructuring and layoffs this summer, and Adidas raised its annual revenue and earnings expectations earlier this week.

"The problem of sports and leisure market is not a sharp decline in demand, but an oversupply," Neil Saunders, global data retail companies general manager, said in an interview with CNBC last month.

"UA is going to be bumpy in pition, and it will take some time to recover," added Camilo Lyon, general manager of BHP, in an interview with CNBC.

One good news is that UA's space in the international market is still huge.

After excluding the exchange rate effect in the two quarter, the international market performance of 22% sales increased by 54%.

Among them, the Asia Pacific region was eye-catching and revenue increased by 88%, much higher than the 60% growth rate in the first quarter.

And nearly 80% of total revenue in North American market grew by only 0.3% over the same period last year.

That's why Curie came to China for the three time.

In this year's Asian activities, UA arranged a party for Curie in the temple. Lifestyle is the future of UA.

More interesting reports, please pay attention to the world clothing shoes and hats net.