Under Armour has certainly found its stride in recent years. Arguably the signing of Steph Curry from Nike was game changing for the Baltimore-based brand. Major moves from the brand included the signing of Dwayne “The Rock” Johnson to a lucrative deal to anchor UA’s training division with “Project Rock”. UA has seen a rise in their stocks and popularity with the Curry launches and overall success of endorsed athletes such as Cam Newton and Jordan Speith.
But Under Armour reported its first quarterly loss as a publicly traded company. Uncharted waters for a brand that was riding high. Which could be attributed to a number of things. Even the Thursday announcement didn’t stop a jump on Wall Street but footwear rose only 2-percent last quarter compared to a very large 64-percent jump just last year. Those same numbers are telling giving that the Curry 3 did not manage to fair as great as its predecessors; but also Curry was red hot himself winning two MVP Awards including the league’s first unanimous winner.
“Our success in basketball hasn’t been without its learning. This has created an inventory imbalance that we are working through. One that, yes, is baked into our full-year outlook which hasn’t changed and, most importantly, yielded lessons we’re applying ahead with the Curry 4 and beyond, ” – Kevin Plank, Under Armour CEO
What’s next for Under Armour, is this an alarming trend? Has the polish finally lost its shine or is this merely a blip on the radar as Wall Street appears to indicate? Only time will tell.
images via Jose Carlos Fajardo/Bay Area News Group