All articles tagged with #athletic apparel
Penn State is ending its 32-year partnership with Nike to sign a new 10-year deal with adidas, valued at around $300 million, due to Nike's perceived lack of priority and limited support, with adidas promising to treat Penn State as a top-tier partner and offering better financial incentives and NIL support.
Auburn University has officially announced a new 10-year partnership with Nike, ending an 18-year relationship with Under Armour. The transition will see Nike's branding on Auburn's athletic uniforms starting in July 2025, following the expiration of their current deal with Under Armour. Athletic director John Cohen emphasized the importance of athlete input in the decision-making process and expressed gratitude to Under Armour for their longstanding partnership.
Nike's third-quarter results exceeded expectations, with flat sales attributed to a weak sportswear market and economic challenges in major regions, including China. Lululemon's fourth-quarter revenue met estimates, but a disappointing first-quarter outlook led to a 9% stock drop in after-hours trading. Analyst David Swartz notes Lululemon's history of promising low and delivering high, expressing skepticism about their guidance, and suggests that the stock may have been overvalued, leading to a sharp decline.
Under Armour has brought back founder Kevin Plank as president and CEO amidst industry challenges, including a 70% stock decline and lowered revenue outlook. The company faces struggles in maintaining brand affinity and has had various setbacks, leading to investor skepticism. In contrast, Dick’s Sporting Goods reported strong sales and earnings, with its House of Sport stores driving growth, in a positive exception to the industry trend.
A new study funded by Lululemon and conducted by researchers at the University of British Columbia suggests that wearing a too-tight sports bra can affect breathing and impede running performance. The study tracked the breathing and lung function of elite runners and found that a too-tight bra caused them to take more shallow breaths and consume more oxygen, leading to decreased running economy. Experts recommend wearing a sports bra that offers adequate support without being too tight around the rib cage, emphasizing the importance of proper fit for optimal performance and comfort during exercise.
Nike shares plummeted over 10% and Foot Locker shares dropped over 4% after Nike revised its revenue outlook for the fiscal year, citing challenges in Greater China and EMEA, softness in digital traffic, and a stronger U.S. dollar. The company now expects its revenue to grow only 1%, down from the previous mid-single digit growth projection. Nike also announced plans to cut costs by $2 billion over the next three years. Analysts have expressed concerns about the company's marketing strategy, competition from smaller rivals, and slowing growth momentum.
Peloton's shares surged over 15% in extended trading after announcing a five-year partnership with Lululemon to develop digital fitness content, with Lululemon becoming Peloton's primary athletic apparel provider. Lululemon will discontinue selling the Studio Mirror, which streams workout classes, by the end of the year but will continue to support existing Mirror equipment. This news follows Peloton's recent shift towards prioritizing subscriptions over expensive exercise equipment and the departure of its co-founder and Chief Product Officer, Tom Cortese.
Foot Locker reported falling sales for another quarter and slashed its outlook for the second time this year, blaming "consumer softness" as inflation-weary customers hesitate to spend on footwear and apparel. The company's adjusted Q2 earnings were in line with expectations, but sales fell short and margins were impacted by promotions and higher shrink. Shares plunged 26% in pre-market trading. Foot Locker now expects sales to drop 8% to 9% for the year and cut its adjusted earnings guidance. The retailer has been relying on promotions to drive sales as its lower to middle-income customer base pulls back on discretionary spending. Comparable-store sales dropped 9.4% due to ongoing consumer softness and changes in vendor mix.
Foot Locker's stock dropped 25% after the company cut its full-year sales outlook due to a "tough macroeconomic backdrop" causing same-store sales to lag behind last year. The footwear retailer now sees comparable store sales declining as much as 9% for the year after initially guiding for no worse than a 5.5% decline. Foot Locker's revenue has declined for four straight quarters, and other athletic apparel brands like Nike and Under Armour also declined on the news. The company is in the midst of its turnaround strategy dubbed 'Lace Up,' which includes closing 400 underperforming stores and focusing more on off-mall locations.