Under Armour Loses to Competitors and Lost Customers

The company’s share in the sports footwear market decreased from 3.2% to 2.7%, and in the clothing market from 6.4% to 5.6%.

The American sportswear and footwear brand Under Armour, the third-largest player in the world market, continues to experience financial problems. Since the last sales report was published, the company’s share price has fallen by 13%. The decline in quotations has been the highest for the previous two years. 

Analysts note that Under Armour is losing to its main competitors: brand sales are falling, including in the North American market. Over the past quarter, the company’s net loss amounted to $17.3 million against a loss of 95.5 million a year earlier. Under Armour’s revenue increased by only 1.5% year-on-year, with sales in the U.S. and Canada declining by 3.2%, and store traffic decreasing. 

The company’s share in the sports footwear market decreased from 3.2% to 2.7%, and in the clothing market – from 6.4% to 5.6%, said the NPD Group. Nike and Adidas remain the main competitors of the brand, as well as gradually increasing their market share in Fila and Puma. Under Armour expects to open more stores outside of shopping malls, as well as to develop online sales and attract more customers through targeted advertising. In 2019, the company expects revenue growth of 3-4%.