Under Armour reported its financial results for the third quarter of 2017, with a decrease across the board.
The company’s net revenue went down 5 percent to $1.4 billion, and that’s just the start of the third quarter report.
“2017 has been a reset for Under Armour,” Kevin Plank, CEO of Under Armour said on a conference phone call with investors this morning. The company faced operational and demand challenges throughout the third quarter, leading to the significant decline in net revenue. Additionally, new software installations led to delays in shipping and stock, hurting third quarter numbers as well.
Wholesale revenue decreased 13 percent to $880 million but direct to consumer revenue rose 15 percent to $468 million. Revenue in North America went down 12 percent. In comparison, international revenue increased 35 percent, composing 22 percent of total revenue. Asia-Pacific specifically continues to grow, up 52 percent.
Apparel revenue is down 8 percent to $939 million. Footwear revenue was up 2 percent, driven by significant sales in running and outdoor, but offset by basketball and youth categories. Licensing revenue increased 15 percent, driven by new UCLA and Cal partnerships.
“As a $5 billion company we know how we got here and where to go next,” Plank says. “We must operate a better company… every product with an Under Armour logo should make an athlete better.”
You can read the entire Q3 2017 earnings here.
Source: Under Armour
They didn’t really innovate. In fact they seemed to regress on their tech recently. Charged is pure crap. Then they tried to pull a Nike and jack the prices up on everything because their signature athletes (Steph and Cam Newton) performed well.
With that said the Curry 4’s are gorgeous. The Drive 4’s aren’t bad either. Hopefully their new cushion will be good.
I can believe they’re still making good stuff. The Curry line has been great at what it’s meant for, despite not appealing to a diversity of players. I really liked how my Icon product was presented to me. Their CS has treated me very well without any effort on my end.
But as silly as it sounds, the logo alone is a make-or-break. A lot of people aren’t buying products because they’re good, but because they look good. Doesn’t help that the UA logo seems synonymous with your stereotypical douchebag at the gym. They completely came short of changing their image outside of Curry, and even kinda died down on marketing him.
This is because they keep jacking the price of their products for no damn reason. It’s no wonder the curry line is sleeping here in the ph.
They are no longer a driver in the apparel biz as they once were, THAT is the problem. There was a time that UA gear was sought after by a wide majority of adults and kids, which is ad space for the company. UA is no longer edgy, in fact, that are looked upon as passe. Nike will chase and rip off LULULEMON, a Canadian company, because they seek a specific demo, a low key hipness, those with money. UA tried to appeal to the Trump crowd, and lost, BIG time. I do not know if they can get that edge back.
They can always blame the NFL players’ protest. That’s the new cop-out for declining numbers.
One thing that may help is for them to get some big names to carry UA basketball. They can’t live off Steph forever. They have multiple faces in football and baseball, but just one guy in the NBA.
Of course some asshat would bring politics into this ^^^^^^^. Getting back on track, UA never had a dominant presence in the shoe market….they were and still are, in my opinion, a clothing and backpack retailer. Until they bring in a shoe design and engineering team that can match jabs with the best that Nike/Jordan and Adidas have to offer, UA will continue to struggle. The put out a decent shoe for Curry, but that’s about it. The rest are all Famous Footwear specials.