finance.yahoo.com/news/under-armour-is-collapsing--and-kevin-plank-has-to-take-the-blame-123052660.html
Under Armour is collapsing — And Kevin Plank has to take the blame
NewsFourth fiscal quarter sales tanked 5% from the prior year. Sales in North America plunged 10%. International sales were down 7%. Wholesale sales (aka sales to department stores and other partners) fell 7%. E-commerce dropped 8%. Apparel sales down 1%. Footwear sales down 11%. Accessories sales down 7%.
A little bit of perspective:
Walmart (WMT) US e-commerce sales rose 22% in the most recent quarter. Sure, Under Armour doesn't sell ground beef and bikes, but e-commerce continues to be a major growth driver for most retailers. Provided your name isn't Under Armour.
Lululemon's (LULU) sales in the most recent quarter rose 16%. Sales in its Americas division advanced 9%.
"With several CEOs and heads of product marketing in North America over the past half a decade, ongoing turnover of critical leadership has been central to our inability to stay agile and decisive," Plank told analysts on his first earnings call since returning as CEO.
Reminder: Plank has been the constant in the past half-decade during this internal turmoil. The buck has always stopped with him, who is still the controlling shareholder.
So is it a good buy to come back or is it done?
Athletic wear is starting to get out of fashion trend.
Meanwhile, Lulu is moving into the business casual space.
NKE & DKS are probably better comparisons
If we ever get a vuori ipo I'm all in 🤑
Fuck that brand. 65 USD for a t-shirt with a fucking breast pocket. The child slaves probably make and ship it for 10 bucks a unit.
Try 40 cents
Way off by a magnitude. You think UA or Vouri are getting apparel landed at $0.40 / unit? Par the course for this sub
Yes i think the production costs are 40 cents p shirt.
Yeah way off
its probably not $0.40 per shirt but its definitely not $10 per shirt either.
if I had to really actually put a genuine guess on what underarmour pays for the production cost of child-made shirts, I would guess maybe $3.
I got 2 pairs of their shorts in 2022 that I wear daily for the last 2 years, and they still look brand fucking new. No fading, discoloration, fraying, not even a fucking loose thread. Literally the best fitting, most durable shorts I’ve ever owned from any brand, ever.
Not so much a fan of their shirts, but $65 for a decent polo is nothing.
Completely agree. They also happen to be the most comfortable shorts I've ever worn.
Not so much a fan of their shirts, but $65 for a decent polo is nothing.
Not a polo. T-shirt. This is proof a recession isn't happening. People are still willing to overpay for simple shit.
if you can buy a t-shirt for $65 that is still like new after 10 years I'd call that worth it tbh
Patagonia still makes better shorts.
Had a few patagonia casual shorts and they either didn’t fit right or didn’t look as nice. Their board shorts are great and my go to for swimming tho.
Their stuff (definitely shirts) is quality though.. it’s just the same level of quality you got 10+ years ago for less than a quarter the price
10 bucks LMAO you're funny bro
If you're paying full price, you're doing something wrong. But yes, I agree, it's generally expensive, but the thing is, the quality is there.
Govx.com, for example, if you qualify is one place to get a good deal on Vuori. Vuori does coupons all the time, birthday promotions, and so on
Ugh vuori is terrible haha they should be banned
Idc what anyone says I love them lol
just bought a sweet preppy ass jacked from lulu.
Congratulations!
So is it a good buy to come back or is it done?
No idea how their professional products are doing but consumer side they dropped their quality considerably and then flopped at trying to become a fashion brand. Without being "trendy" the high priced, low quality business model they seem to be embracing for consumer goods just fails, especially as time goes on and more people learn the "good quality" reputation doesn't apply anymore. Seems like a bad investment in general.
It’s amazing how many manufacturers don’t get that you can only cut quality around the edges for so long before you’re producing the same garbage as everyone else, but once people figure it out you’re dead to them. I’m about 2/3 of the way there with Columbia, whose hiking pants I’ve worn for years but the stitching on them has gone from “bomb resistant” to “ solid” to “ok” to “don’t sneeze too hard or your pockets will detach”. The prices have gone up slightly, but I’d actually pay more to not have them fall apart on me.
It's not that these manufacturers are just not as smart as we are LOL. Often they do not really have much of a choice when your competition is able to sell the same or higher quality clothes at better prices.
I still have 15 year old UA hoodies that are in great shape. The new ones are terrible.
all this absolutely terrible news and ER and the stock still holding current lows? gonna load a bunch right now and stop loss out under 6.5
I’m in the industry. As long as Plank is in charge it’s done.
I felt they bombed the moment coke bought them.
Under Armour not BodyArmor haha
Interesting that clothes are actually almost flat. I have already been under the impression that besides Nike or Adidas most other brands should exit shoes unless it's their prime focus like hoka, new balance, asics or ON it’s a battle you can only lose.
Did you forget the Shrek Crocs ? .... Shrek remembers
Curry jersey is a top seller. Curry shoes are nothing. UA completely dropped the ball.