UA Takes Important Strides in Connected Fitness, Digital Sales


Jan. 28 2016, Updated 7:05 a.m. ET

Connected fitness and digital sales

Connected fitness is one of Under Armour’s (UA) most important future growth drivers. The company has even begun reporting the business as a separate segment. The company had 150 million registered users as of September 2015, a growth rate of 32% year-over-year.

At its 2015 Investor Day, UA reported a 26% higher order value for digital sales (VCR) (XLY) stemming from its connected fitness platform compared to its other online sales.

Article continues below advertisement

Under Armour’s revenue stream from connected fitness rose from $13.9 million in the first nine months of 2014 to $36.4 million in the comparable period of 2015. This was due in part to the inclusion of Endomondo’s and MyFitnessPal’s results. The latter had clocked sales of $2.8 million through 3Q15.

Smart shoes and devices

Under Armour has entered the fitness wearables market this year. At the Consumer Electronics Show in Las Vegas on January 5, 2016, Under Armour unveiled several connected fitness products powered exclusively by UA Record, its fitness platform. These included Under Armour’s first smart shoe, the UA SpeedForm Gemini 2 Record Equipped. The shoe will retail for $150 and will be sold from February 29, 2016, onward. The shoe is capable of both tracking and storing data for the wearer, including time and date, duration, distance, and splits.

The new smart shoe by Under Armour could pose competition for Nike+ Shoes (NKE), which are capable of holding a Nike+ Sensor in the left sock liner, or Adidas’ (ADDYY) miCoach speed cell, which can be worn in gadget-compatible footwear.

According to a report by Gadgets360, Xiaomi has also launched a range of smart footwear in collaboration with the Li-Ning athletic gear brand.

The next article discusses other recent launches by Under Armour in the wearables segment.


More From Market Realist

  • Honeywell sign
    Earnings Report
    CNBC Pro Stocks to Buy Before Q1 Earnings
  • Men walking by Morgan Stanley headquarters
    Morgan Stanley’s (MS) Stock Forecast Before Q1 Earnings
  • Carnival cruise ship sailing
    Carnival's (CCL) Stock Forecast Before Q1 Business Update
  • GameStop store
    GME's Earnings Are Coming: Will It Be Mayday for Shorts or WallStreetBets?
  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.