Kevin Plank, the CEO and founder of under armour, acknowledged Wednesday that sales for a basketball product -- the Stephen Curry's basketball signature sneaker -- did not turn out well, according to multiple reports.
"As we launched the Curry 3 late last year, our expectations continued to run high," Plank said. "And while the 3 played very well on the court for Stephen Curry and our athletes, a sluggish signature market and a warm consumer reception led to softer-than-expected results."
As Under Armour is eager to sell Curry's popular sneakers, the athletic apparel company has raised the price of Curry's signature footwear.
The price has ranged from $120 for the Curry One to $140 for the Curry 3. Eventually, the price for the Curry 3 has been dropped to $99.99 due to the less-than-ethuasistic reception, which led retailers' decision to discount prices for customers.
Wearing a sneaker with a high profile is imperative for Curry, the Golden State Warriors' two-time NBA MVP, to protect his ankle. The problem, however, is that approximately 80 percent of consumers like to wear basketball shoes for fashion purposes. Lower-profile footwear, which Curry sports during warm-ups, has become more popular and trendy for consumers.
Under Armour's plunge in footwear sales
A couple of months ago, the stock of the Under Armour had gone pessimistic after Plank praised U.S.
President Donald Trump for his economic plans saying he is a "real asset for the country." While the Baltimore-based apparel company attempted to recover its brand, the stock have risen sightly, according to Fortune.
While Under Armour saw a 7.3 percent increase in apparel sales this year, footwear sales have only risen by 2 percent on the first quarter period.
By comparison, in the past year, footwear sales was increased by 64% on the same quarter period.
"We don't like it and we don't accept it," Plank said regarding footwear sales.
The biggest challenge for Under Arnour is to reach a lifestyle brand recognition as prominent sportswear companies Nike and Adidas. Planks anticipates that, by 2018, Under Armour will become a $7.5 billion company after an effort to expand a sizable footwear and lifestyle business to achieve sales goals.
Under Armour seeks to gain brand strength
Wall Street investors seemed uncertainty on whether Under Armour can build the premium brand. Wall Street analysts did not yet have confidence in fast-growing athletic gear company's capacity to establish the brand in a competitive market with Nike and Adidas, but Under Armour executives believe they are capable of enhancing the strength of the brand.
"We feel very good about the evolution of our brand's strength and the ability to gain share in key markets and categories," Plank said in a Thursday's earnings press release.
Since Plank admitted that Under Armour did not achieve its goal of driving the brand growth, the company needs to evaluate the quality of the brand in order to meet the same level of respect in the sportswear market with Nike and Adidas.
The company collaborates with fashion designer Tim Coppens to strengthen the lifestyle brand for the ambitious generation.
Overall, Under Armour reported a better-than-expected quarterly revenue, risen by 7 percent to 1.1 billion on a result of growth in foreign countries. While the company's sales boost growth overseas, sales in North America has fallen by 1 percent. As the company continues to build a retail experience for consumers in physical stores and online, the Under Armour's direct-to-consumer revenue has increased by 13 percent in the most recent period.
