Monday, March 28, 2016

Can Under Armour Keep it's Pace?

What Under Armour needs to do to continue to grow globally is to continue market penetration in the global marketplace. When they are able to establish these global connections they will then be able to grow their company on an international scope. Some of the issue UA has according to the article “Why Under Armour’s Profitability Is Declining” it’s selling, general, and administrative costs are very high cutting down profitability. They are also selling 70% of their revenue through whole sale channels while only around 25% is through Direct-to-Consumer sales. This is all occurring while other companies are focusing on DTC sales rather than whole sale and the article “Under Armour Needs a New Sales Channel Mix to Compete Effectively” states that “Wholesale channel growth will be vital. In a trade¬off between revenue growth and expanding margins, this strategy will spur revenues but impact the company’s profitability with respect to its peers.” Under Armour’s primary channel partners in the US are Dick’s Sporting Goods, Foot Locker, Sports Authority, and Finish Line. The top though for Under Armour has been Dick’s and Sports Authority.

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