Unprotected House: Sales Growth Decelerating For Under Armour
Data from SportScanInfo suggests sales growth for Under Armour, which reports Q3 numbers next week, could drop to 20-25% from the year ago period, compared to 42% and 50% in Q1 and Q2, respectively, according to Reilly & Richardson of the WALL STREET JOURNAL. Also, "early indications are that the fourth quarter isn’t off to a good start.” Competition “is heating up as [Nike and adidas] look to grab share in the market for compression undergarments," and the "prospect of a slowing economy could hurt sales” for Under Armour. SportScanInfo Chief Retail Analyst Matt Powell said, “Back-to-school was definitely disappointing for active apparel and footwear, but the rate of decline was more marked here for Under Armour. After four or five years of huge growth, it’s very hard to maintain big percentage increases year over year.” Reilly & Richardson note the “potential swing factor” in the company’s projected sales is Dick’s Sporting Goods, which does not report to SportScanInfo (WALL STREET JOURNAL, 10/23).
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