- Project Rock 1 Sneakers cost $120
- Under Armour stock up nearly 15% since its last earnings report
Dwayne “The Rock” Johnson and sports apparel company Under Armor’s (UA +0.42%) “Project Rock 1” $120 sneakers sold out in 30 minutes. But is UA strolling behind competitors in leveraging celebrity clout into higher sneaker sales?
Why This Matters: The Under Armour athlete roster boasts of NBA champion Stephen Curry, the NFL’s Cam Newton, and American ballet dancer Misty Copeland. Whereas competitors Adidas (ADDYY -2.82%) and Puma expand beyond sports icons, enlisting celebrities such as Kanye West and Rihanna. Most recently, Puma named rapper and business mogul Jay Z as its president of basketball operations.
Yet UA is notably not at the top of the sneaker game: Nike remains the number one U.S. sports footwear company. Adidas snagged the second spot from under Jordan’s feet last September. The question remains whether dotting lines for influencers outside of sports can boost the company’s hype with non enthusiasts.
Situational Awareness: The overall athletic footwear market in the U.S. remains pretty bleak though, as sales have flatlined since 2015. Dollar sales from February to April 2018 grew in the low-single digits, according to market research firm NPD. However, these market challenges have not stopped the Under Armour stock from securing wins. The company’s footwear net revenues rose 0.8%to $271.8 million last quarter. Since April, the stock also grew more than 14%. Under Armour is restocking the Rock’s sneaker on June 28.
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