Sales Of Under Armour Are Down, Dealers Are Selling At Low Prices.

American sports brand in August 29th

Inc. (NYSE:UAA)

The share price of Dick s Sporting Goods Inc. (NYSE:DKS), a sporting goods retailer, fell sharply on Wednesday.

In the two quarter earnings report, Dick 's Sporting Goods Inc., which sold $8 billion 590 million a year, pointed out that the strategy of Under Armour Inc., the expansion of the distribution of Andrew Ma, led to a substantial regression in the sales of the brand, and the same store sales of Dick' s Sporting s, which also decreased by 1.9% year by year, the rate of reduction was much higher than the 0.62% expected by the market, and dropped 4% after skimming the calendar effect.

After the shooting of the Florida campus that killed 17 people in February this year, the group tightened its sales of firearms, which was also a drag on the same store's performance.

In order to increase contacts with middle-class consumers, Under Armour Inc. Andrea has started supplying the Kohl 's Corp. Corp. (NYSE:KSS) department store with more than 1100 department stores since 2017.

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Last week, when the quarterly bulletin was announced again, it commended Under Armour Andrew for sale. Chief executive Michelle Gass told analysts that the brand was "showing strong growth" and sales growth in the same store is accelerating.

Under Armour Inc., Andemar, also resumed sales growth in the North American market, which accounted for 74% of the group's revenue last quarter, partly due to the continued strengthening of management to directly face consumer business and expand the proprietary retail network.

Looking at Dick 's Sporting Goods Inc., they complain that Under Armour Inc. Andemar has aggravated market competition for distribution of lower end retailers, making it more difficult for them to sell at higher prices.

Jane Hali, chief executive officer of Jane Hali&Associates LLC, a retail investment research firm, points out that in general, the Under Armour Andrea brand will appear in the back area of Dick 's Sporting Goods s, and the products it supplies to the group is roughly the same as that of the company.

Under Armour Inc. spokeswoman declined to comment on the matter.

Edward Stack, CEO of Dick s Sporting Goods Inc., pointed out that the challenges posed by Under Armour Inc. "Goods" will not be reduced until the new products are on shelves in 2019.

He also expressed joy at Under Armour Inc. Andrew's display of HOVA sports shoes and Dwayne Johnson "megalith" Johnson cooperation Series in their shop, and so on. "Under Armour will have a sharp turn in Dick 's," he told analysts.

Nike Inc. (NYSE:NKE)

The group is the largest supplier of Dick 's Sporting Goods Inc., belonging to Adidas AG (ADSGn.DE) Adidas group's Reebok Reebok is the exclusive brand of the group.

Some analysts believe that the cooperation between Nike Nike brand and American luxury department store Nordstrom Inc. (NYSE:JWN) Nord, the other way, is worth learning from other retailers.

Dick 's Sporting Goods Inc. should also continue to expand its own brand business to increase profit margins and stimulate sales.

In the last two quarters, the income of Under Armour Inc. and Inc. increased by 7.7% to 1 billion 174 million 900 thousand US dollars. After the exchange rate effect, North America recovered 1%, while EMEA, Asia Pacific and Latin America increased by 13%, 28% and 14% respectively.

Wholesale income rose by 9% to $710 million per year, and DTC business increased by 7% to $414 million.

Continued investment in DTC, footwear and international business as well as ongoing restructuring plan made the group continue to record losses, with a net loss of $95 million 544 thousand, narrowing compared with $123 million 100 thousand in the same period last year.

Under Armour Inc.A shares (NYSE:UAA) fell 7.8% to 19.31 U.S. dollars in the early days, dropping to 0.67% in the whole day, closing at $21.08, maintaining the cumulative increase of 40% so far in 2018, with a market value of 8 billion 600 million US dollars.

Dick 's Sporting Goods Inc. (NYSE:DKS) suffered a setback of up to 10%, closing at $35.60, and the full day decline was also reduced to 2.18%.