While shoes that "boosted athletic performance were the sales champions just a few years ago, the all-stars this holiday season are predicted to be sneakers focused more on style than improving a jump shot or boosting a runner's speed," according to Charisse Jones of USA TODAY. When it comes to the most popular shoes, fashion and celebrity "often matter more than function." Rapper Kendrick Lamar is "collaborating with Nike," while producer/singer Pharrell Williams has a "line of shoes under the Adidas banner." There is also Fenty, a sneaker partnership between Puma and singer Rihanna, which is "among the hottest fashion-focused shoes at the moment." Consulting firm A.T. Kearney Principal Manik Aryapadi said that sales of fashion sneakers are "expected to grow 15% to 25% from last year." Meanwhile, NPD analyst Matt Powell said that sales of basketball shoes in particular "have been sliding." Sales "plunged 20% in August alone," with Nike, Under Armour and Jordan Brand all "experiencing a sales slump in that category." Slower sales of basketball shoes were "one of the factors" that led to UA's Q3 revenue decline and "less optimistic outlook for the full year." Jones writes Air Jordans "dominated industry sales for years," but today it "may be the Yeezy, rapper Kanye West's collaboration with Adidas, that comes closest to the type of frenzy that greeted the original Air Jordans a generation ago" (USA TODAY, 11/2).
 |
Kershaw is one of Under Armour's top
athlete endorsers in the U.S. |
STARS ALIGN: YAHOO FINANCE's Daniel Roberts wrote UA is "flailing in America, star athlete roster or not." It is "hard to see fault" with UA's list of athlete endorsers, as the company boasts swimmer Michael Phelps, Patriots QB Tom Brady, golfer Jordan Spieth, Dodgers P Clayton Kershaw, Nationals RF Bryce Harper and actor Dwayne Johnson. Warriors G Stephen Curry is also an endorser, but UA has not "seen big basketball market gains, despite its Curry signature shoe line." The Curry 3 shoe, which came out last year, was "not a hit." But it "isn't just Under Armour that shows endorsements aren’t always a boon to a brand." Adidas is "on a hot streak in the U.S., but it’s unlikely that it has much to do with its athletes." Powell said endorsements “rarely move the needle” for a sports apparel brand financially. A big name "brings buzz at the time of the announcement and when a new ad comes out, but the association does not typically directly create a boost in sales." Powell said that "product is what matters." Adidas has "put out a strong product pipeline in sneakers over the past few years." However, Powell said that he "sees West having zero impact on Adidas sneaker sales." Powell "acknowledges an exception when it comes to sports brands and music artists: Puma and Rihanna." He said of that tie-up, "Their business turned around literally overnight" (FINANCE.YAHOO.com, 11/1).
