In recent news that is not exactly surprising, Under Armour (UAA and UA) is in a little bit of trouble as their stock numbers are down around 20%. The sportswear company has always been the “little brother” to Nike and Adidas, and it’s safe to say that label is showing its face right about now.
Sales numbers for the quarter at Under Armour are down over 5% since last year and this has apparently caught the company off guard in more ways than one. Kevin Plank, the CEO of the company, was on record as saying that demand for their shoes has been down in addition to all of its apparel in their biggest market, the United States. While they have grown over the years in foreign countries, the market here on their home turf still makes up over 75% of their sales numbers.
While Under Armour does have a healthy share of big-time athletes behind its name, Stephen Curry, Tom Brady, and Bryce Harper to name a few, that does not equal the amount of firepower that Nike and Adidas have year-in and year-out. Not to mention, the sales and exposure that come from basketball superstars is easier to promote to the market versus those in football and baseball. It’s not exactly the strongest business idea to have baseball or football player’s shoes as a big selling point. Basketball shoes, on the other hand, sell like hot cakes, and it helps that Nike has four or five big faces to promote versus one or two for Under Armour. On top of this, there have been reports that Steph Curry’s newest shoe, the Curry 4, has experienced supply and shipping issues.
Hopefully, Under Armour can recover from this and get back on track. While this isn’t the type of news you want leading up to the holiday season, it’s not the end by any means. They can still sign some big names and Curry’s new shoes can even drum up big waves as the NBA season gets underway. Let’s just say a big quarter awaits the company.