Under Armour Failed To Continue The Myth Of Growth

In the three months ended September 30th, the United States

Under Armour recently released its third quarter earnings report in 2016. The overall revenue of the group rose 22.2% to 1 billion 470 million US dollars compared with last year, slightly higher than analysts' expectations of $1 billion 460 million, net profit surged 27.6% to 128 million 200 thousand US dollars and amortized earnings per share were 29 cents, higher than FactSet's expected 25 cents.

Although the group's performance is still higher than 20% in the quarter, the 30.2% increase in the 27.7% and third quarter of the second quarter has slowed down significantly, the smallest growth rate in 6 years. Under Armour chief financial officer, Chip Molloy, admitted in a telephone conference with Wall Street analysts that although the growth rate of the group would still be higher than that of its peers, it was lower than the expected target set by investors in September 2015.

Under Armour chairman and chief executive officer Kevin Plank

In the quarter, the biggest driving force for Under Armour still came.

And international business, among which the best selling of footwear benefited from the rebound in the first 13 weeks of the United States in the first 42.1% weeks of October 1st, with a growth rate of US $42.1% to $278 million 900 thousand; clothing category increased by 18% to US $1 billion 20 million; accessories category rose 17.6% to US $121 million 800 thousand.

Kevin Plank, chairman and chief executive officer of Under Armour, described the group as still growing in its earnings report, but acknowledged that the sales of the US core market in the core of the brand were slower than the group's own expectations.

Earlier reports, the German sports brand.

The second quarter continued strong momentum in the first quarter, strong in the Nike dominated US market, and defeated Under Armour as the fastest growing sport brand in the market.

At present, the group is working hard to diversify its product mix and increase discount activities for relatively unsalable clothing.

Kevin Plank pointed out that China is still the most promising potential market for the group, and the company has also launched an e-commerce platform to expand its business to emerging markets such as Mexico, Australia, New Zealand and Chile.

At present, Under Armour has 230 e-commerce platforms in the world.

International business recorded 73.7% growth in the quarter to US $226 million 200 thousand, and sales in the US market increased by 15.6% to US $1 billion 230 million.

The group reiterated its expectation of $4 billion 925 million in revenue for the whole year, basically reaching FactSet's expected $4 billion 930 million, but in the 2017 and 2018 fiscal year, the group expected to grow to 20% to 23%, the lowest growth rate since 2009.

The forecast further deepened investor fears of Under Armour's failure to continue the growth myth, and the group's share price plummeted 20% before opening Tuesday.