Under Armour's “Unlike Any” campaign featuring Zoe Zhang.
The ath-leisure trend may be coming to an end and athleticwear giants are going to see some fallout.Wells Fargo analyst Tom Nikic said in a new report that consumers over the last several years have “filled their closets with athleticwear” that has crossed into casualwear from the likes of Nike, Lululemon and Under Armour. But having bought enough — and combined with some bankruptcies of sports retailers and a lack of product innovation — the sector may be heading for a slowdown.“Big picture...the category appears poised to take a breather for now,” Nikic said.This led him to lower full-year earnings estimates for Nike, Lululemon and Under Armour, but Nikic also downgraded the latter to underperform from market perform, saying the company looks likely to be hit hardest by sales leveling off.Deutsche Bank in July downgraded Under Armour to “sell” from “hold” over its dwindling near-term growth prospects and the company cut its annual revenue projection less than a week later. Under Armour posted its first-ever loss during the first quarter. Nikic explained that Under Armour still operates mainly in the struggling U.S. retail market and is sold more as performance gear, unlike Nike and Lululemon, while its sneaker offering has “more customer attrition than any other brand,” according to the results of a survey.While “cracks started to show” in the industry last year as growth slowed to 6 percent, the lowest rate since 2010, Nikic said headwinds are expected to continue into 2018 as sales trends have continued to “deteriorate” this year.As for Nike, which is expected to deliver financial results for its first fiscal quarter next week, Nikic said the recent launch of the Vapormax sneaker hasn’t grabbed the “sneaker-buying community,” and that its recent deal with Amazon could negatively affect the brand’s retail presence.“The cannibalization risk would be high if Nike ever began selling premium sneakers directly to Amazon,” Nikic said.He also noted that 40 percent of more than 550 young men surveyed on their buying habits in the athletic sector said they would buy premium sneakers on Amazon if they were available.At the moment, Nike only sells “mass” product on Amazon retailing under $90.Nikic admitted that Lululemon “seems to have the most momentum” among the three brands, but he pointed out that its positive financials have been driven entirely by price increases over the last year or more and store traffic has been negative, presenting a risk “if/when Lulu can no longer push higher pricing.”Lululemon in August posted a 10 percent decline in second quarter net income, while net revenue increased 13 percent and comparable sales, including digital, increased 7 percent.Adidas was characterized as a “bright spot” in the industry, but Nikic pointed out that its business has been driven with fashion, not performance product.“The athletic industry was able to avoid some of the issues that have plagued the rest of retail for years (negative traffic, aggressive promotions, etc.) but now that demand is cooling off, they can no longer avoid these headwinds,” Nikic said.
There'll be no rest for those headed to Europe for men's, as Paris just closed the gap with Milan. According to a provisional calendar released by the Chambre Syndicale, Paris Men's Week will now open a day earlier on January 16. See new highlights on the official lineup on WWD.com. #wwdnews #wwdfashion (📷: @kukukuba)
BREAKING: Jonathan Saunders is leaving @DVF. The designer has resigned from his position as chief creative officer of Diane von Furstenberg, the company said in a statement on Friday. At the time of his hire, von Furstenberg said Saunders’ arrival symbolized and facilitated her stepping back from the day-to-day duties that occupy the work of a full-time creative director. The British designer joined DVF in May 2016 and was in charge of all product categories. #wwdnews
For @versace_official’s spring ad campaign, the brand emphasized the archival prints from the spring tribute collection dedicated to the late Gianni Versace. Closing out the show were five of Gianni’s favorite models: Cindy, Naomi, Carla, Helena, and Claudia. Bowing on December 18, the new campaign is yet another tribute to supermodel-dom as the images by Steven Meisel are fronted by @iamnaomicampbell, @cturlington, @gisele and more. #wwdfashion
Four-time Oscar-nominated actress Annette Bening has been waiting 20 years to play Gloria Graham in "Film Stars Don't Die in Liverpool," which will be released on December 29. The movie about Graham – a Hollywood star known for her controversial relationship with a younger Englishman named Peter Turner – is based off a memoir Turned wrote. "She felt vulnerable to him, because she loved him, she really did love him. And anyone that we really truly are in love with, we re vulnerable to in a very deep way," said Bening. Read our full interview with the modern icon of an actress on WWD.com. #wwdeye (📷: @ninebagatelles; Styled by @cristinaehrlich)
The crisp white button down: a staple that can be dressed up or down and accessorized throughout the decades. Here, on a Art Basel-goer in 2017 on the left and on the iconic Audrey Hepburn in “Roman Holiday” in 1953 on the right. #tbt #wwdfashion (📷: Andrew Morales)
Known for her work with @victoriassecret, 25-year-old model @georgiafowler is raising her profile in Hollywood. Fowler stars in @vincecamuto’s holiday campaign, which launched in partnership with “Pitch Perfect 3.” “Almost every shoot with Vince Camuto, I’ve had to face a fear…It was definitely a challenge. I’m so grateful for it, though. I’ve always wanted to be a pop star, so that was the perfect chance,” Fowler said. Head to WWD.com to read about Fowler’s experience modeling, including at the #VSFashionShow, and her relationship with Nick Jonas. #wwdeye (📷: @jilliansollazzo)
EXCLUSIVE: Huda Kattan just became the first beauty influencer to land a major beauty deal. Kattan's business, @hudabeauty, has received a minority investment from private equity firm TSG Consumer Partners. The brand, which industry sources say is on track to do $200 million in retail sales for 2017, will receive support on product, retail and geographic expansion through the deal. Get all the details on the deal and read @_a_collins' interview with Kattan on WWD.com. Link in bio. (📷: @jgreenery) #wwdbeauty #wwdnews
Peruvian model @juanaburga_official – who is known for walking the runways of @rodarte, @viviennewestwood and @torybuch – is making the move to the big screen with drama “Los Últimos.” The film premiered in Argentina in November and arrives in the U.S. and Europe in 2018. On making the switch from modeling to acting, Burga told WWD: “It’s a completely different thing – a lot of people think it’s similar or try to connect things, especially like getting used to the camera or being looked at all the time or playing these different characrers, but film is a completely different story.” #wwdeye (📷: @jgreenery)
London’s newly opened @designmuseum will look back on the life and work of Azzedine Alaïa in a show that the designer helped to curate before he died of heart failure last month. The retrospective, which Alaïa had worked on with Mark Wilson, chief curator of the @groningermuseum, will look at the impact of his work worldwide. The show, “Azzedine Alaïa: The Couturier,” will run from May 10 to October 7. Read more about the exhibit on WWD.com #wwdnews #wwdfashion (📷: @zefashioninsider)