Under Armour has been selling apparel and footwear at Kohl’s since mid-March. And the Baltimore brand is poised to offer its athletic shoes through Designer Shoe Warehouse and famed, renowned Footwear.
But reaching customers that way won’t offset commerce, trade the brand has lost because of retail chain bankruptcies and declining sales at key retailers such as Dicks Sporting Goods, one analyst warned in a report nowadays.
Sam Poser, an analyst at SIG Susquehanna Financial Group, placed a sell recommendation on the company’s stock.
The Under Armour launch exceeded Kohl’s expectations, Kohl’s has said. Still, Poser said Wednesday, Under Armour’s U.S. sales growth through its retail partners “is likely to remain challenged.”
Sales through unique retail channels and back-to-school footwear offerings won’t design up for a pile-up of store closings, the analyst said. The Sports Authority and Sports Chalet shut down final spring, and this year MC Sports and Gander Mountain are going out of commerce, trade.
Meanwhile, Poser said Dicks has carve back on orders. He said the chain is “perturbed by [Under Armour’s] decision to open up distribution to the moderate retail channel without an appropriate segmentation strategy” — a strategy to encourage customers differentiate between Under Armour products sold at the sporting goods store versus the reduction department store chain.
Poser estimates that sales through Kohl’s, DSW and famed, renowned Footwear will add $104 million in revenue this year. Lost revenue from bankruptcies and liquidations are expected to arrive to $140 million.
final month, Under Armour announced its first quarterly loss since it became a public company in 2005.
Under Armour founder and CEO Kevin Plank told analysts that the brand is taking steps to address the abrupt slowdown, by focusing on better management and improving product offerings, including more fashionable, yet functional, clothing that can be worn external the gym or off the field.