After a recent comment by Foot Locker CEO Dick Johnson stating that the Curry 3 wasn’t selling as well as its predecessors, Under Armour’s stock took a 5% nose-dive on Friday, which equates to nearly $600 million USD. “The 2.0 and 2.5 Curry shoes in the third quarter performed well,” Johnson said in a presentation with analysts. “The 3.0 is fairly new into the business. It started off a bit slower than the two previous models.” With UA heavily relying on Steph Curry’s basketball shoes to bolster its footwear sales, investors became skittish and reacted pessimistically to the news. While the footwear category generated $786 million in revenue thus far compared to $2.3 billion for apparel, sales increases were 35% higher for footwear. With strong players like Nike and adidas, the Baltimore brand is faced with even tougher measures to compete in the sportswear industry.
SOURCEFORTUNE
