Andrew'S Two Quarter Profit Plunged 57%

Despite sales maintenance market Expectations of rapid growth, but by key customers, Sports goods The bankruptcy of The Sports Authority Inc., the manufacturer of the second sports goods group, Under Armour Inc. (NYSE:UA), Andrew Ma, lost two quarter profits in 57%. The group's share price fell 6% before Tuesday's session.

In the two quarter ended June 30th, Under Armour Inc. Andrea Net profit dropped to $6 million 344 thousand from $13 million 766 thousand in the same period last year. The adjusted diluted earnings per share amounted to $0.04, which was in line with Bloomberg's consolidated forecast and was also better than the $0.01 expected by Reuters.

Because the liquidation of The Sports Authority Inc. in the two quarter resulted in a write down of US $23 million, operating profit fell by 39.3% to US $19 million 378 thousand during the period, and the operating profit rate also dropped from 1.9% in the same period last year to 1.9%.

Although the overall income of $1 billion has met market expectations, there are hidden worries. Not only did the 27.7% revenue growth slow down compared with 30.2% in the first quarter, but the growth rate of the largest category of clothing business was the first time to fall below 20% in the past seven years, and the income increased by only 18.9% to 612 million 800 thousand US dollars, accounting for 61.2%. At the same time, the footwear business of the Jinzhou warriors, the star of the Stephen Curry, Stephen Currie, continued to slow down. The sales of US $242 million 700 thousand increased by 58% compared with the same period last year, while the increase in the fourth quarter and the first quarter of this year reached 94.5% and 64.2% respectively. Driven by bags and headgear, accessories business increased by 21.3% to 100 million 700 thousand dollars.

By region, the income of North American local market increased 21.5% to 827 million 100 thousand US dollars, accounting for 82.7%. International market revenue rose by 68.3% to 150 million 200 thousand dollars, and the fixed exchange rate rose by 72%. In the first half of this year, the group added 60 international stores. And Connected Fitness Internet fitness business revenue growth as high as 73.3%, revenue of $23 million 497 thousand. Business losses in the international market and Connected Fitness interconnect fitness business have been significantly reduced.

Sports Authority Inc. filed for bankruptcy in March of this year, and was forced to liquidate it in June because no one answered the offer. Under Armour Inc. Andemar, therefore, lowered the US $5 billion to $4 billion 925 million last month after the first quarter earnings report was released last month, which means that it will grow by 24.3% compared to the 2015 fiscal year, the slowest in six years, and the operating profit forecast has also been greatly reduced to $4.40-4.45 billion from the previous 5.03-5.07 billion.

However, from the expansion plan announced by Under Armour Inc. Andrea today, group sales will have a great growth momentum next year.

Following its entry into Macy 's Inc. (NYSE:M) Messi department store in 2012, the group disclosed that it would enter 1100 stores in the United States from March 1, 2017 to Kohl s s Corp. NYSE:KSS (NYSE:KSS), bringing the consumption of a large number of suburban middle class consumers who were not easily accessible to Under Armour Armour and Andrew retail network, and greatly expanded the coverage outside the traditional sporting goods retail store.

At present, Under Armour Inc. Andrea has about 11 thousand sales outlets in the United States, less than half of the biggest competitor Nike Nike brand 24 thousand. Morgan Stanley (NYSE:MS) Morgan Stanley analysts expect cooperation with Kohl s Corp. to create a $190 million sales for the group next year.

Choosing to enter a department store also means the pursuit of female consumers. Women are very important in the medium-term strategy of Under Armour Inc. Andrea and Nike Inc. (NYSE:NKE) Nike group. Last month, Under Armour Inc. Inc., a functional and professional word of mouth, said it wanted to open up a new fashion series and hired Belgium fashion designer Tim Coppens as the creative director of the Under Armour Sportswear (UAS) series that will be launched to market this fall. As the proportion of female consumers in the group is higher than that of men, the entry into fashion helps to consolidate their loyalty. The world's chief supermodel Gisele B B ndchen is also a spokeswoman for the group's female products.

In addition, Under Armour Inc. Andrea has rented the old F.A.O. Schwarz flagship store in Fifth Avenue, New York, using the 53 thousand square feet of sales space to create landmark retail flagship store to build brand image and tell brand story.

Under Armour Inc. (NYSE:UA) narrowed to 0.64% at 10:22 p.m. Eastern time at AM $43.30. As of Monday, the stock rose only 4.7% in 2016, while the cumulative increase in 2015 and 2014 reached 19% and 56% respectively.