I will begin with an overview of Under Armours financial reports. Under Armour is releasing a new Quarterly report on April 26th, 2018, these numbers are all in alliance with the most recent report for 2017 yearly report. …show more content…
Two words. Steph Curry. The MVP and current champion of which some are calling the best NBA team of all time, “Golden State Warriors”. Steph Curry is Under Armours biggest and only hope to retain and gain back traction in the basketball shoe business that they desperately need help in. Being called the best shooter of all time as well as holding multiple records for 3-pointers made, makes Curry a big deal to the shoe market. Steph curry was disrespected by Nike in shoe talks earlier in his career and now they are paying the price to their competitor Under Armour. Having secured Curry is the biggest move ever made by the company as they pay a handsome $4 million a year to Curry. Its to be noted that Curry’s shoes once sold $153 million in 3 months boosting profits 40% in the shoe market.
. UA surprised investors and consumers by releasing Curry’s latest shoes, “Pi-Day” available in April. UnderArmour struggles with the brand loyalty that you see Nike and Jordan brand retaining. Simply put, putting a Nike Swoosh on a UA basketball shoe will make the shoe extraordinarily more likely to sell. The face and branding of Steph Curry is crucial for success with UA and they have said this through locking him up until 2024. Part of the recent success in international market is due to Steph Curry as he and other current NBA phenoms are highly regarded and admired overseas, especially in …show more content…
While UA is optimistic on its current sales revenue being higher than expected, troubled times lay ahead. Several factors play into this. First the competitiveness of the market they share is overwhelming. With brands such as Nike, Adidas and even Jordan, it’s a very hard market to stay in. UA is much smaller than the leading competition, Nike. Nike has stayed consistent while UA has gone from 26 quarters in a row of sales over 20% growth to seeing its stock price nearly 1/3 the value from its once top price of $53.24 a share. The sales in North America can help show why this is happening. The reports showed a 4% decrease in sales in NA which actually was better than most had thought. Decreasing sales in North America are a major issue for UA and explain the stock dips. Athletes like Steph Curry help UA but they simply can’t compete with the talent Nike and Adidas have. The two companies have more capital to spend on athletes and they do resulting in many more athletes representing them. Steph Curry was on the upside of UA but he is also on the downside. As explained by CNN Money, “Under Armour has also made a big push into basketball with a line of shoes endorsed by Golden State Warriors star Steph Curry. But it may have tried too hard to market Curry as a worthy successor to Michael Jordan, who still is a big seller of sneakers for Nike.”(LA