Under the display of Armor sports shoes.
Under Armor's third-quarter sales may have exceeded expectations, but one notable drawback to Monday's release was the company's shoe sales.
Under Armor said shoe revenue fell 12% to $ 250.6 million from $ 284.9 million a year ago.
During a conference call after analyzing profits with analysts, the company acknowledged that these results were "lower than planned." He said he still expects his shoe business to grow over the year. It said shoe sales for the third quarter were in part hit by fewer purchases at market prices, from which it is actively trying to retrieve certain products.
"I think that's part of the process we have in launching [strategy] the really creation of this funnel of technology and innovation …" CEO Kevin Planck told Under Armor's shoe business. he called out his Curry and Rock products and his HOVR technology to brighten the spots. "Building a product for [athletes] that will help them train, compete and recover will really be our difference, in my opinion."
Still, most buyers seem to vote differently with their wallets, since
Fashion shoe brands such as Fila, Puma, Athletic Propulsion Labs and Vans have grown in popularity with Adidas and Nike partnering with the likes of singer Kanye West and Beyonce and designer Virgil Abloch. to make more stylish sneakers that are not necessarily worn during sports.
Instead, Under Armor maintained its focus on "performance. "And that harms the brand.
" For the last four years, every category of achievement shoe has been developing negatively … running, basketball, training, "said NPD Group analyst Matt Powell." Today we are very much in the cycle of athletic entertainment We bring products inspired by athletics, but we don't intend to use them for sports. "
It doesn't look like it's changing any time soon, Powell said." There is no indication in the near future that the show is back in fashion. "
] Planck in a call on Monday talked about what it is like to "adjust" to who a clothing company for a business that also sells shoes. When Under Armor started in 1
Planck said we expect more innovation in the moving forward category. Time will tell if Under Armor can make its shoes cool again.
Under Armor shares fell more than 14% on Monday morning after the company confirmed Sunday that it was facing a federal probe for its accounting practices. Nike's stock rose about 1.5%. Lululemon shares are down 1.4%.