Under Armour's 'soaring' shoe sales reveal a terrible truth for the business (UA)

pulse

February 23, 2017 7:27 PM

In order to achieve its ambitious goal of becoming a $10 billion company, Under Armour knows it will need to become a footwear powerhouse.

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If you go by the company's last earnings report, that initiative is doing great. Footwear sales in the last quarter of 2016 were up

That's not great news for Under Armour's star-powered footwear business, which has seen sluggish growth in its models endorsed by all-star basketball player Steph Curry. Basketball footwear sales industry-wide were down about 20% in 2016.

The athletic shoe industry as a whole has shifted to lifestyle and retro styles, of which Under Armour has limited offerings. NPD analyst Matt Powell called retro styles "the strongest player in the athletic footwear market" growing at 29% through October of 2016. Unlike Adidas and Nike, Under Armour does not have decades of footwear styles to draw inspiration from and has virtually nothing to offer in this category.

Under Armour as a whole is shifting strategy after a disappointing quarter, admitting that it missed the athleisure trend.

said during a call

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