Under Armor hardest hit as athletic shoe sales plummet 76% in the last week of March
While shelter-at-home orders usually go out for exercise, people apparently aren’t using the opportunity to stock up on new sports equipment.
NPD Group market researchers say the drop in retail sales of athletic footwear accelerated in the last week of March, plunging 76% from the previous week, during which it suffered a decrease of 65%.
With retail stores closed to help control the spread of COVID-19, the disease caused by the coronavirus, the drop in sales is not unexpected. While retailers have been able to make up for some of the worst aspects of sales through their e-commerce channels, NPD says it’s not big enough to make a big difference.
Under protection (NYSE: UA)(NYSE: UAA) and Japanese shoe maker Asics suffered the most from the recession, with sales down 85% for the period, but NPD senior sports adviser Matt Powell said “there is no positive points “.
Nike (NYSE: NKE) sales are down 75% while Adidas (OTC: ADDYY), Vans and Jordans are down about 70%.
The worst segments in the category were basketball and skating shoes, which plunged nearly 80% while athletic shoes and running shoes fell 70%. And with the suspension of major league sports seasons due to the pandemic, sales of footwear for spring sports such as baseball and football have all but evaporated: sales are down almost 100%.
Under Armor goes start putting employees on leave next week, although it will continue to benefit until mid-June. He also revealed a restructuring plan that will cost him up to $ 525 million in one-time charges.
This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Questioning an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.