Ongoing Battle: What Under Armour Can Learn From Sports Authority’s Liquidation
Under Armour shares dropped today by more than 4% after reporting a loss in its Q2 earnings. The athletic-wear company attributed much of the loss to a one-time shareholder dividend.
It also took a hit when Sports Authority, one of its largest customers, filed for bankruptcy in March—adding a $23M impairment charge to the quarter, Bloomberg reports. As retail continues to struggle amidst e-commerce competitors, manufacturers are finding that relying solely on department store distribution is a risky bet.
Under Armour is looking to develop its own retail channels—like Coach, Ralph Lauren and Nike have recently done—and has plans to build hundreds of new stores, staring with a flagship in NY. But two-thirds of its business still stems from wholesale clients. [Bloomberg]
