Andrew's Revenue Grew Nearly 28% In The Two Quarter.

Yesterday, Under Armour released its performance in the second quarter of 2016. Revenue grew nearly 28% in the quarter to $1 billion. But net income dropped from 1480 last year to 6 million 300 thousand, or 58%. In addition, because of its huge investment in e-commerce and personnel growth, the expenditure increased by 32% to 458 million over the same period.

The best performance is still Gym shoes Class, Curie Basketball shoes The series continues to drive growth, with sector revenue rising by 58% to $243 million.

However, what is most noticeable is the two new plans related to sales channels announced by Under Armour on the same day.

One of the plans is brand Its new product line, Under Armour Sportswear, will be stationed in the high-end department store in March 1, 2017, Kohl 's, 1100 stores in the United States. In addition, the series will also be sold in new flagship stores and UASportswear.com.

We have reported the UAS series before. A month ago, Under Armour invited fashion designer Tim Coppens to perform the creative director for the series. It will focus on high-end sports apparel market, for the first time clearly positioning "Life" instead of professional sports. "We believe that the high technology of Under Armour should not be confined to athletes only, but this is not the two choice. UAS comes from the arena, but it is built for life. " Under Armour CEO Kevin Plank said.

The cooperation between Under Armour and Kohl 's is said to have been brewing for 2 years. Kohl s launched a recovery plan called "Greatnewss Agenda" in 2014, referring to the search for new cooperative brands, focusing on sports and health categories. This category accounts for 15% of Under Armour business, which has been trying to expand outside the traditional outdoor sporting goods distribution channels.

In 2012, Under Armour has been stationed in Messi's department store, hoping to attract more ordinary consumers. At present, it has about 11000 stores in North America, less than half of Nike 24000 stores. In March, its long-term distributor and The Sports Authority Inc, the US sporting goods retailer, declared bankruptcy, resulting in its sales channels in California and other places, and its business suffered a loss of $23 million. Kohl 's's more than 100 stores in California are expected to help it recover in the local market.

FAO Schwarz store in Fifth Avenue, New York

In addition to the wholesale channel like Kohl 's, Under Armour continues to expand its retail outlets. It also said on Tuesday that it was buying the flagship store of FAO Schwarz Schwarz, an American toy store, on Fifth Avenue in New York, to create "a unique shopping environment" in the space of 53000 square feet.

The store is behind the Apple flagship store and is not far from the luxury brands such as Bvlgari, Tiffany and LV. It will open in 2017 and become part of the Under Armour Brand House (Under Armour). At present, there are more than ten brands of similar brand houses in North America, and there will be more than 100 outlets in the world.

Under Armour, vice president of global retail Susie McCabe, said in a media interview: "controlled retail space is more conducive to our story telling, and the relationship and interaction between customers and athletes are also brand specific."

However, some people think that Under Armour has invested too much in sales. "CEO Kevin Plank has spent too much money trying to attract more consumers," said Jim Cramer, a financial analyst at TheStreet website. "I don't think that has made any improvement in this season."

Under Armour's stock fell 5 percentage points on Tuesday, due to its failure to meet expectations. Under Armour expects its net revenue in 2016 to reach 49.3 billion US dollars, 24% higher than last year, and operating income will be between $440 million and $445 million.