By Sara Germano
Adidas AG lost its No. 2 position in the ultracompetitive U.S.
sportswear market last year to ascendant Under Armour Inc., which
increased sales in both apparel and footwear at its German rival's
expense.
According to data released by Sterne Agee and SportScanInfo
Thursday, Under Armour recorded $2.6 billion in U.S. footwear and
apparel sales for the 11 months through Dec. 31, compared with $1.6
billion for Adidas. Both were far behind Nike Inc., which tallied
$11.8 billion of sales in the region for the period, excluding $2.5
billion of Jordan footwear sales.
Nike has long held the top perch in sales of sweats and sneakers
in the U.S. with its Nike and Jordan brands accounting for more
than 90% of the U.S. market for basketball shoes. Both Nike and
Under Armour increased their market share in their respective
footwear and apparel divisions for the year at the expense of
Adidas.
Under Armour first surpassed Adidas in the U.S. in combined
sales earlier last autumn, but the year-end numbers released on
Thursday indicate the first time the Baltimore-based company has
edged out Adidas at the close of a calendar year.
Adidas, which ranked third in both footwear and apparel,
suffered a 30% decline in shoe sales and a 20% drop in apparel
sales, according to the Sterne Agee report. Under Armour's growth
relied heavily on its apparel business which rose 17% while its
nascent shoe business grew 34%, ranking seventh behind other brands
like Skechers, Asics, and New Balance.
The results from Sterne Agee and SportScanInfo only represent a
slice of the sportswear market, and don't include sales from Dick's
Sporting Goods, a major retailer for each of the three big
sportswear brands. Dick's isn't expected to release fourth-quarter
results until March.
Other noted sportswear industry trackers, including NPD Group,
haven't yet published year-end sales estimates.
Adidas has been taking steps to stop its U.S. decline. It hired
a new president of North America, Mark King, who has been vocal
about spending more on marketing and investment in American
sports.
On Thursday, the company announced a 12-year deal to outfit the
University of Miami Hurricanes, a contract that previously had
belonged to Nike.
Moreover, its global design director has relocated from Germany
to the U.S., and the company is planning a new design studio in
Brooklyn, New York, to open later this year, as it seeks to infuse
more American identity into its offerings.
Under Armour, meanwhile, is working to build its footwear
business. Its sponsorship deal with Golden State Warriors guard
Stephen Curry has given the company a foothold in the basketball
shoe market. Last year, the company took over the contract to
outfit athletic teams at the University of Notre Dame.
But it is still early days for Under Armour. Last summer, the
company lost a bidding war with Nike to sign the National
Basketball Association's reigning Most Valuable Player, Kevin
Durant.
Write to Sara Germano at sara.germano@wsj.com
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