Andrew's Two Quarter Performance Is Lower Than Expected.

When Andemar (UnderArmour) had just searched Currie, the other side was just an ordinary player with a hidden danger of injury. How could he think that he was able to turn the tide and win the MVP two times and establish the Jinzhou Dynasty.

The "private house" brand of curi released its second quarter earnings in 2019 before July 30th. Unlike the most brilliant times, the company's performance remained weak during the spring and summer session, with revenue of $1 billion 192 million, an increase of 1.4% over the previous year, less than the average value of Bloomberg estimates of $1 billion 198 million.

UA is a typical sporting goods brand that "leverages the world with a fulcrum". It was born in the age of hegemony such as Nike and Adidas. If it is not for the founder to persist in the market of non cotton tights, I am afraid it will be difficult to grow to this day. Because of the popularity of fast drying tights in the male market, UA's "tough guy economy" impressed the market.

Restoring dignity in overseas markets

UA's high-performance sports tights are one of the fastest growing categories in the sports apparel industry. Because of its superior performance and good use in many scenes, such as fitness, this has also contributed to the growth of revenue in the UA fitness field.

More importantly, celebrity free advertising, including Obama, also increases the value of UA brand. Finally, after signing the library, UA successfully launched a day in Nike and Adidas's NBA market.

Currie brought a whole shoe market to UA. In the 2019 quarter's earnings report, the shoes represented by the Curie series were the main contributors to saving their revenues and turning losses into profits. This year, the income of sneakers increased by 5% over the same period last year.

Another factor that keeps companies from losing money again is the growth of overseas markets. This quarter, the market income in North America was 816 million US dollars, down 3.2% compared with the same period last year, and the income of Asia Pacific market, including China, was 154 million US dollars, up 22.6% from the same period last year.

From the inventory point of view, the sales situation of UA is no worse than that of other similar sporting goods companies. Inventory dropped to $966 million this year, down 26% from the same period last year, mainly due to the growth of wholesale business, but the drawback was that a large number of companies receivable account cycle extended.

Deep ploughing to break the market is hard to say the way ahead.

One of the biggest weaknesses of the kings in the subdivision area is the saturation of the market. Even if this does not happen, it will accelerate under the encroachment of competitors. UA core clothing revenue has been stable for three consecutive years, which is not only a sign of maturity, but also a pressure for UA to change.

Even for sneakers, Currie wore out many times. Is a person's brand effect a long-term plan?

Obviously, UA has focused on the deep ploughing of market segments. Since 2015, a number of fitness related companies have been acquired, and the revenue of fitness classes has been upgraded to a level.

However, market segmentation is a good tool for growth and may also become a bottleneck for growth. In the context of popularization of sports products, the use and promotion of high-tech products are still subject to restrictions. UA is also in this black and white era.

Before the Nike ADI online market, after a rookie Lululemon deeply ploughed the female market, UA's dilemma is only known by itself. Whether to segment the market to the end may be the biggest choice for UA.