Reuters/AI Project
Boxer Carlos Balderas poses for a portrait at the U.S. Olympic Committee Media Summit in Beverly Hills, Los Angeles, California.
- Dick's Sporting Goods on Tuesday said its new private athletic label will compete with Under Armour for floor space.
- In August, Dick's CEO Edward Stack called out Under Armour for contributing to the retailer's sliding same-store sales.
- Dick's said it has seen some improvements from Under Amour after the brand's restructuring plan.
- Lululemon was also trading lower following the announcement.
- Watch Under Amour trade live.
Under Armour shares were sliding Tuesday, down 2.29% at $19.24 a share, after Dick's Sporting Goods said its new private athletic label would compete with the brand for floor space.
"The brand that we're going to have is more of an opening price point products for us," Dick's Sporting Good's management said on Tuesday's earnings call. "The research we've done on this has been very well received and we're pretty excited about it. It would have meaningful floorspace."
Management added Under Armour "will remain in the floor space that it has today" and "there won't be any additional floor space allocated there."
In August, Dick's CEO Edward Stack called out Under Armour for contributing to the retailer's sliding same-store sales. "We experienced continued significant declines in Under Armour sales as a result of their decision to expand distribution," he said at that time.
But on Tuesday, Dick's said it has seen some improvements from Under Amour after the brand's restructuring plan. "We're enthusiastic about our Under Armour business going forward," Dick's management said.
Lululemon shares also fell on the news, and were trading down 0.51% at $144.55 a share.
Dick's was up 8% this year.
MI