In relation to sales, it appears like basketball apparel and footwear is no longer the MVP.
Sales in the Curry 3 – the most up-to-date shoe within Armour’s much-lauded collaboration with basketball superstar Steph Curry – are actually looking questionable, indicating that a number of the trouble Nike is experiencing with basketball shoes made its way to UA.
Unlike the Curry 1 and Curry 2, the 3 is away and off to a slow start, based on Foot Locker CEO Di-ck Johnson.
“The 3. is fairly new into the business – it started off somewhat slower than the two previous models,” Johnson said in the conference call discussing the most up-to-date earnings report.
Though Under Armour Shoes is experiencing stellar rise in its newly expanded shoe collection – up 42% last quarter year over year – it would appear that a star athlete sponsorship and good product are not enough to stem the tides of trends turning sharply far from performance basketball footwear.
Checking out the tea leaves, UA may have expected this. Nike’s basketball category – what most consider a core business for that swoosh, it makes up about roughly 5% of Nike’s total sales – was down 1% in wholesale sales for fiscal year 2016.
In the present trend now – retro and lifestyle running – performance basketball will be put aside.
“We’re significantly inside a retro fashion cycle today,” NPD Group analyst Matt Powell told Marketplace. “Millennials really are flocking to wearing old-school looks.”
While Nike’s Jordan brand, which experienced growth, may seem like an exception to this rule, on closer inspection it can be anything but. Jordan wholesale sales grew 18% in 2016 when dexjpky43 to 2015, but nearly 1 / 2 of Jordan sales – both sneakers and apparel – may be associated with their retro lifestyle-oriented sneakers, according to Powell.
Adidas, the number-two sneaker seller in the US, is affected less than Nike and Under Armour from this trend, as basketball makes up about a reduced figure with their overall sneaker sales. But even so, the company admits that “basketball grew in a slower rate,” according to the latest earnings report.