UA Has Hidden Risks: Maintaining Individuality Can Expand The Brand.

In the past two years, the quarterly growth of Under Armour has maintained an astonishing 30% average. But now, although Under Armour's footwear business still keeps 42% quarter growth, the total revenue in the third quarter has slowed to 22% US $1 billion 47 million.

Jay Sole, an analyst at Morgan Stanley, thinks that women's clothing business of Under Armour is not fashionable enough, and is becoming weaker under the increasingly competitive sports and fashion trend. This may be a more noticeable risk than sales of Under.

In addition to over reliance on spokesperson curi, the Baltimore's muscle brand is also struggling to expand its territory while maintaining individuality.

The biggest sport in the United States

Foot Locker, a boss of the company, said that the share price of Under Armour fell 4.6% from last Friday, and the market value evaporated 600 million dollars.

Last Friday, CEO Dick Johnson, a retailer known for its striped referee logo, said: "Curie 2 and 2.5 sold well in the third quarter. Curie 3 is a fairly new product, but sales slowed down a bit earlier than those of the first two shoes."

Investors did not overreact.

Foot Locker is the largest retail channel in the US Under Armour, and their views are very important for wholesale business, which accounts for 69% of Under Armour.

Although Curry's products only account for about 5% of the total sales of Under Armour, he is undoubtedly the most appealing spokesperson of Baltimore sports brand. The aura of his brand helped the brand develop its territory in the field of basketball. Some media have already placed him in the same position with Nike's Jordan and LeBron.

According to the statistics of sports goods retail data tracked by SsiData in March this year, the sales volume of basketball basketball shoes in the past year has surpassed all other NBA players:

160 million dollars.

NBA player shoes annual sales rank:

Stephen Curry:1.6 billion

Lebron James:1.5 billion

Kevin Durant:8200 ten thousand dollars

Kyrie Irving:5100 ten thousand dollars

Kobe:1800 million dollars

Under Armour attaches great importance to Currie. In addition to launching his signature shoes in less than a year, he also applied for 5 trademark labels for one person, so as to prepare for a better personal brand later on: "Fall Back (step back)", "The Game's New Creative Genius (stadium Nova)", "The Patron The (short stature bar)", "the best player in the league" ("the most difficult defensive player in the league"), and "the baby face killer".

"A couple of Currie's.

And become an amazing driving force for this company's budding basketball business.

Commented last year.

Due to the dazzling performance of curry's Stadium last season, sales of Curry 2 and sales rose sharply, pushing the footwear growth in the third and fourth quarters last year to 61% and 95% respectively.

But in other words, Curie himself is also one of the biggest risk factors for brands.

Kuri 3 basketball shoes listed at the beginning of this month are Under Armour, taking advantage of NBA's new season's trump card product, priced at 140 US dollars (the price of 1299 yuan in China), which is 20 dollars higher than the Kuri generation, 10 dollars higher than the two generation, and the price and high real war money may increase the threshold of people's consumption, resulting in less sales than expected.

If the timeline is stretched, it is not the only price decline of Under Armour in the past year. In April and October this year, the share price of Under Armour fell 50% and 16% respectively.

In early April, another important spokesperson for Under Armour, golf world champion Jordan Spieth, was defeated in the US Masters competition. Then Morgan Stanley analysts changed the proposal of Under Armour to "sell off".

In late October, Under Armour released its three quarter earnings, and the company warned investors.

The growth will slow down in the next two years. CEO Kevin Plank has publicly indicated that it will ignore the short-sighted investors and continue to invest more in order to grow in the future.

Although the problems faced by Under Armour are certainly too dependent on spokesmen and growth is not stable, the real reason for analysts to downgrade the stock is that the wholesale sales of Under Armour's core businesses are shrinking.

At first, the fitness brand which started in the narrow market is now facing the bottleneck of growth. However, the layout of their pformation to the comprehensive sports brand is still not fully functioning. This year's New York fashion week, Under Armour has released the UAS series (UA Sportwears), which is the main leisure fashion route. It is one year behind the Nike Techpack series and half a month away from Adidas Athletics, and the problem of brand dependence on the library is still there, as shown at the beginning.