At the just concluded men's basketball final of the Paris Olympics, basketball player Stephen Curry made four consecutive three pointers, helping the US team win the gold medal at the age of 36 and becoming the top contributor to the game.
In the past two years, Curry has been in a slump and has not led the team out of difficult times on the NBA court. But this Olympic game is undoubtedly Curry's shining moment in recent years, as he proved with his strength that he is still a top pitcher.
The sports brand UAA. N, which has a deep cooperation with Curry, also urgently needs such a comeback. At the Curry Olympics, just as he was "killing everyone", Andema released a disappointing new quarterly report - overall revenue fell by 10% in a single quarter.
As a start-up brand, Andema made a name for itself in the relatively mature American sports market, with a market share once second only to Nike, "said Zhang Qing, founder of Key Way Sports Consulting Company and chief brand management expert at the China Sports Economy Research Center of the Sports Science Institute of the General Administration of Sport. Its" hardcore sports "brand image has deeply rooted in people's hearts. However, in the subsequent expansion, Andema's performance has repeatedly failed in the fierce competition of the mass market.
Revenue in the new fiscal quarter declines by 10%, with both North America and Asia Pacific experiencing losses
Recently, Andema released its financial performance for the first quarter of the 2025 fiscal year (April 1, 2024- June 30, 2024) as of June 30. According to the financial report, the company's revenue for the quarter decreased by 10% year-on-year to 1.2 billion US dollars (approximately 8.609 billion yuan); Operating loss of $300 million, adjusted to profit of $8 million; The net loss is $305 million, and the adjusted net profit is $4 million.
From the perspective of regional sales performance in the international market, Andema has not only lost its stronghold in the United States, but also lost important markets in the Asia Pacific region.
According to the financial report, Andema's revenue in the North American market decreased by 14% year-on-year to $709 million; Revenue in the international market decreased by 2% year-on-year to $473 million, with revenue remaining stable in Europe, the Middle East, and Africa, while revenue in the Asia Pacific market decreased by 10% year-on-year (down 7% on a fixed exchange rate basis), and revenue in the Latin American market increased by 16% year-on-year (up 12% on a fixed exchange rate basis).
Screenshot of Andema's financial report
Nowadays, major brands are rushing to grab the line, and the sales situation of Andema's various channels is also weak. According to the financial report, in terms of channels, the revenue of Andema's wholesale channel decreased by 8% year-on-year to 681 million US dollars, and the revenue of its direct to consumer (DTC) channel decreased by 12% year-on-year to 480 million US dollars. Among them, the revenue of self operated store channels decreased by 3%, and the revenue of e-commerce channels decreased by 25%.
With sportswear such as quick drying clothes, Andema quickly gained a foothold in the market, and then entered the sneaker market, laying out multiple fields such as golf, football, running, and outdoor. However, the revenue of these product categories has declined to varying degrees in the latest fiscal quarter. According to the financial report, from March to June 2024, Andema's revenue in the clothing, footwear, and accessories categories was $758 million, $310 million, and $93 million, respectively; Compared to the same period last year, they decreased by 8%, 15%, and 5% respectively.
Why are Andema's products not selling well? When (Andema) shifted from adhering to brand tone and product characteristics to targeting the general public and pursuing quantity, it failed to grasp the balance point. "Zhang Qing said in an interview with the Daily Economic News that for Chinese market consumers, Andema's current products lack style, that is, a distinct brand imprint, in addition to a large logo.
Once, with the love of consumers, Andema surpassed Adidas to become the second largest sports brand in the US market. In the past two years of development, the "turbulence" of the management team of Andema may also become a factor affecting the company's unstable development and performance. In 2019, Kevin Plank, the founder of Andema, stepped down as CEO and was succeeded by the company's former COO Patrik Frisk. However, after just over two years in office, he was taken over by the third CEO, Stephanie Linnartz from Marriott; Kevin Plank returned to Andemar and regained power in May this year.
Kevin Plank's return is seen as the key to Andemar's breakthrough. Kevin Plank also quickly made a series of adjustments, such as canceling excessive discount strategies and shifting to providing exclusive high-quality products to members to increase customer value and profitability; Refocus on the brand's core men's clothing business, etc. However, based on the first quarter report of the 2025 fiscal year, Andema has not been able to recover from the continued decline in performance.
For the fiscal year 2025, Andema expects its annual revenue to decline at a low double-digit percentage rate; The expected operating loss is between $194 million and $214 million, and the adjusted operating profit is expected to be between $140 million and $160 million, compared to the previous expectation of $130 million to $150 million.
Long term lock in Curry, Andema also needs to play a comeback battle
Diminished and underestimated, he rewrote the course of the story with his strength and became a part of the legend. "This is a portrayal of Curry's career. In the NBA where "height above two meters is not considered high", Curry, who is 1.88 meters tall, does not have an advantage in innate conditions. From being underestimated in his debut to attracting widespread attention, Curry made a comeback and became an NBA superstar. However, his performance on the international stage has been relatively lackluster in recent years. At the age of 36, his first participation in the Olympics is likely to be his last.
Can Curry's' comeback 'on the Olympic stage inspire Andema, who has been with Curry for over a decade?
Public information shows that in 2013, Andema signed Curry from Nike, and Curry's performance on the court did not disappoint Andema. In 2015, Curry led the Warriors to win the NBA championship. Its strong dominance on the field is transformed into an exceptional ability to carry goods.
In 2014, Andema's net revenue for the year increased by 32%, with shoe net revenue growing by 44% from $299 million in 2013 to $431 million. Net shoe revenue increased by 57% in 2015. Continued strong growth in 2016.
In 2023, despite both Curry and Andema being in a state of "poor performance", Andema successfully renewed Curry's contract. According to multiple media reports, this is a long-term contract similar to the collaboration between Michael Jordan and Nike. Andema's personal brand Curry Brand, established for Curry, will exist in its sub brand library for a long time.
Andema has been focusing on basketball for a long time, not only signing Curry, but also being a sponsor of the Chinese national team of three person basketball, "Zhang Qing told the Daily Economic News reporter." However, the basketball culture released from its interaction with young consumers is still far from enough. For example, in terms of products, can we develop tight fitting basketball explosive clothing that drives the trend of outerwear? In terms of marketing, has Andema fully explored the appeal of street basketball to young people and cooperated with fast-moving consumer goods? Andema has not put enough effort into these tasks
Zhang Qing believes that Andema should strengthen its basketball appeal among young Chinese consumers in order to salvage the company's overall performance. The Chinese market definitely has great potential, and many international brands that are stuck in bottlenecks are revitalized by their exploration and innovation in the Chinese market. For example, in the early years, Capa, the founder of Anta's Greater China business, Salomon, and Fila, were acquired
The promotion of Andema in China needs to be penetrated in a more cultural way. If we don't seize the window of opportunity, the brand's upward space will decline, "Zhang Qing told reporters." Curry, who is over 36 years old and a countdown to his career, has a very rich brand connotation and urgently needs Andema to actively dig deeper. Basketball players will eventually be unable to throw, retire, and end their sports career. It can be said that all athletes end up with 'failure' on the court, but this is not true failure, it is the spiritual driving force of human self breakthrough