Under Armour (UA) reported its 26th consecutive quarter of more than 20% revenue growth on Tuesday.
The sports apparel company beat third-quarter earnings expectations, with earnings of 29 cents per share and revenue that jumped 22% to $1.47 billion. Management also reiterated full-year revenue guidance, implying 20% growth in the fourth quarter.
But investors and traders were hoping for more. Thanks to its past success, Under Armour is under pressure now more than ever; 20% revenue growth is no longer good enough. Under Armour shares fell 13% in early trading on Tuesday.
On the earnings call, CEO Kevin Plank, who founded the company in 1996 when he was still a college football player at the University of Maryland, praised the company’s consistent progress. He also addressed the love that people in both the US and foreign markets have for the Under Armour brand.
“It’s not about what people are conveniently referring to as ‘athleisure,'” he said. “It’s the simple truth that people around the world are raising what they expect from athletic apparel.”
Plank was also asked about athleisure on Under Armour’s last earnings call in July, and whether the trend would end soon. He responded that it would’t, because what people call athleisure isn’t actually a fleeting trend, but rather a “shift” in the way people choose to dress.
If it sounds like Plank doesn’t love all the fuss over the athleisure trend, he’s not alone. Many apparel executives have avoided the term or outright criticized it.
Adidas has placed huge emphasis on its fashion line with Kanye West, comprised of clothing that many would argue fits into the athleisure trend quite clearly; but you won’t see the term anywhere near the Adidas Originals x Yeezy marketing materials or glitzy fashion shows.
Tyler Haney, founder of the apparel brand Outdoor Voices, said this month, “I hate that term. It’s the worst thing in the world. I can’t wait for it to die.” Even former NFL linebacker Shawne Merriman, who created his own “Lights Out” apparel brand (and recently settled a lawsuit with Nike over its use of the name), has recently slammed the term:
But many analysts say that whether executives like the term or not, the trend it describes isn’t going anywhere. Quite the opposite: it has gone global, to places like China, where Plank said, “With sports and fitness being promoted strongly by the government, we continue to be seen by the Chinese consumer as the premium brand, or are often referred to as ‘the professional brand.'”