Company cites opportunities but need for improvement
By Andrea K. Walker
July 29, 2009
The Baltimore Sun
The running shoe market could be a test of the company's future in footwear, a category Under Armour is looking at for long-term growth, analysts said. Other footwear categories the company has entered, such as football cleats and cross-trainers, weren't as competitive.
Runners are loyal consumers who don't switch brands easily, said Matt Powell, an analyst with SportsONESource, which tracks footwear spending. There are also many varieties of running shoe brands on the market. It can take three to five years for a company to really penetrate the market, Powell said.
Powell said that Under Armour has successful launches of shoes, but needs to be able to keep the momentum going beyond the initial introduction.
"It hasn't been a huge boon for them, nor has it really changed the industry," Powell said of the Under Armour running shoe.
Wednesday, July 29, 2009
Monday, July 27, 2009
Under Armour Taps McCarthy as Shoe Chief
Footwear News
by MEGHAN CASS
Under Armour announced Thursday the appointment of Gene McCarthy to the post of SVP of footwear.
McCarthy will relocate from Boston to begin work at the Baltimore-based athletic firm on Aug. 10.
A veteran of the athletic footwear world, McCarthy resigned as co-president of Timberland on July 17 after three years of service. Previously, he was SVP of global footwear at Reebok and spent more than 21 years at Nike, where he held several positions including global director of sales and retail marketing for the Jordan brand.
McCarthy said he had been in touch with Under Armour executives for some time but that he was asked to join the company “in very recent weeks.”
His first order of business will be to add manpower to the footwear department and continue charging ahead in the running category.
“We have to attract world-class talent. We have wonderful people in the building now, and we need to build on that structure. We also need to take running to the next step. Under Armour made a wonderful first impression with the running category. Now we want to build on that because it is the true performance category that crosses over to all sports,” said McCarthy.
Matt Powell, an analyst at SportsOneSource, was upbeat about Under Armour’s new hire.
“He’ll be terrific in the job,” Powell said. “[Gene] is a guy who really understands the athletic market and has a great brand sense.” He added that McCarthy will need to focus on bringing costs down in the footwear category.
“Under Armour doesn’t have a lot of leverage in the marketplace because of their size, and they are paying more than they need to for footwear. Consequently, the shoes are somewhat overpriced and low-margin. They are going to have to really work on how to take some of the cost out of the product and bring the prices down to be a little more competitive.”
by MEGHAN CASS
Under Armour announced Thursday the appointment of Gene McCarthy to the post of SVP of footwear.
McCarthy will relocate from Boston to begin work at the Baltimore-based athletic firm on Aug. 10.
A veteran of the athletic footwear world, McCarthy resigned as co-president of Timberland on July 17 after three years of service. Previously, he was SVP of global footwear at Reebok and spent more than 21 years at Nike, where he held several positions including global director of sales and retail marketing for the Jordan brand.
McCarthy said he had been in touch with Under Armour executives for some time but that he was asked to join the company “in very recent weeks.”
His first order of business will be to add manpower to the footwear department and continue charging ahead in the running category.
“We have to attract world-class talent. We have wonderful people in the building now, and we need to build on that structure. We also need to take running to the next step. Under Armour made a wonderful first impression with the running category. Now we want to build on that because it is the true performance category that crosses over to all sports,” said McCarthy.
Matt Powell, an analyst at SportsOneSource, was upbeat about Under Armour’s new hire.
“He’ll be terrific in the job,” Powell said. “[Gene] is a guy who really understands the athletic market and has a great brand sense.” He added that McCarthy will need to focus on bringing costs down in the footwear category.
“Under Armour doesn’t have a lot of leverage in the marketplace because of their size, and they are paying more than they need to for footwear. Consequently, the shoes are somewhat overpriced and low-margin. They are going to have to really work on how to take some of the cost out of the product and bring the prices down to be a little more competitive.”
Thursday, July 16, 2009
Will Toning Shoes Be the Next Big Footwear Craze?
By Natalie Zmuda
Published: July 15, 2009
in Advertising Age
Toning footwear, shoes that promise to do everything from firming up muscles to alleviating back pain, are expected to become a $100 million category this year. Yet, it's still a category in its infancy. Brands such as MBT, Ryn and FitFlop have earned a cult following, broadening their distribution significantly in the last year or two, and now mainstream brands such as Reebok and Skechers are getting in on the action. More major brands are sure to follow, said Matt Powell, a footwear analyst with SportsOneSource.
"It's still emerging at this point, but it's starting to feel like its going to be a really big deal," he said. "People are starting to talk about it the way they talked about aerobics back in the mid-'80s."
Mr. Powell estimates the category will reach $100 million in retail sales this year. And though that's a fraction of the roughly $1 billion walking category and $5 billion running category, he says toning footwear is the kind of thing that could "catch on like wildfire."
"Pretty much everybody is aware of it, but some have chosen not to play yet," he added. "This could revive the walking category, which has been dormant for 10 years."
Published: July 15, 2009
in Advertising Age
Toning footwear, shoes that promise to do everything from firming up muscles to alleviating back pain, are expected to become a $100 million category this year. Yet, it's still a category in its infancy. Brands such as MBT, Ryn and FitFlop have earned a cult following, broadening their distribution significantly in the last year or two, and now mainstream brands such as Reebok and Skechers are getting in on the action. More major brands are sure to follow, said Matt Powell, a footwear analyst with SportsOneSource.
"It's still emerging at this point, but it's starting to feel like its going to be a really big deal," he said. "People are starting to talk about it the way they talked about aerobics back in the mid-'80s."
Mr. Powell estimates the category will reach $100 million in retail sales this year. And though that's a fraction of the roughly $1 billion walking category and $5 billion running category, he says toning footwear is the kind of thing that could "catch on like wildfire."
"Pretty much everybody is aware of it, but some have chosen not to play yet," he added. "This could revive the walking category, which has been dormant for 10 years."
Monday, July 13, 2009
Bodysuit uses compression to squeeze away pain
Andrea K. Walker, Baltimore Sun
LINK to the Article in the Fort Wayne Journal Gazette
“It’s one of those things where, if it works – or, more importantly, if people believe it works – it can be massive,” said Matt Powell, an analyst with SportsOneSource, which tracks sportswear sales. “It can be a whole new frontier for us as an industry.”
The body-hugging suit, which Under Armour calls Recharge, came out of the innovation the company is pursuing to distinguish itself from competitors.
LINK to the Article in the Fort Wayne Journal Gazette
“It’s one of those things where, if it works – or, more importantly, if people believe it works – it can be massive,” said Matt Powell, an analyst with SportsOneSource, which tracks sportswear sales. “It can be a whole new frontier for us as an industry.”
The body-hugging suit, which Under Armour calls Recharge, came out of the innovation the company is pursuing to distinguish itself from competitors.
Monday, July 6, 2009
Laced Up and Ready to Run
BY CHRISTOPHER C. WILLIAMS
Barron's Online
FOOT LOCKER, THE NATION'S LARGEST RETAILER OF athletic footwear, is poised to seize victory from the jaws of de feet.
The New York-based chain, with about $5 billion of annual revenue and 3,641 mostly mall-based stores, felt the sting of recession long before the rest of the retail sector. Sales at stores open at least a year -- a critical retail metric -- have been sliding since 2006, amid a fashion shift toward casual shoes and away from bulky sneakers.
Link to Barron's Online (Subscription Required)
Barron's Online
FOOT LOCKER, THE NATION'S LARGEST RETAILER OF athletic footwear, is poised to seize victory from the jaws of de feet.
The New York-based chain, with about $5 billion of annual revenue and 3,641 mostly mall-based stores, felt the sting of recession long before the rest of the retail sector. Sales at stores open at least a year -- a critical retail metric -- have been sliding since 2006, amid a fashion shift toward casual shoes and away from bulky sneakers.
Link to Barron's Online (Subscription Required)
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