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.
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.