UNDER ARMOUR LAUNCHES SUBSCRIPTION BOX SERVICE

Under Armour (UAA) is entering the subscription box business. Armour Box, a customized package of 4-6 pieces of the season’s latest gear, is different from many subscription box services in that there are no monthly fees. Subscribers receive a box based on their needs, style and goals, monthly, bi-monthly or quarterly; then pay for what they want to keep and return the balance (at UAA’s expense). Customers that purchase everything in the box receive a 20% discount. The company is using data curated from their Connect Fitness apps and e-commerce platform to deliver outfits that have been frequently purchased and positively reviewed.

Howie Long-Short: The subscription box business has seen its share of success stories (see: Dollar Shave Club) and failures (see: meal kit delivery businesses). Stitch Fix proved the model can work, generating $1 billion in ’17 revenue and filing for an IPO. Of course, Stitch Fix sells more than just their own label and UAA’s biggest issue right now is that teens won’t wear the brand. Subscription boxes aren’t changing that.

Fan Marino: Here’s a feel-good story to start your day. Under Armour has signed Syrian refugee and Olympic swimmer Yusra Mardini to an endorsement deal. Mardini describes her experience of fleeing Damascus in a new video, saying “I should have been killed by the bomb that hit the pool in Damascus. I should have drowned in the Mediterranean Sea. I should have been one of the many faces of refugees who died along the way, but I am here.” Mardini participated in the ’16 Rio Games, competing under the Olympic Flag as a member of the Refugee Olympic Team (ROT). She finished 41st among 45 entrants, but managed to win a 100m butterfly heat.

Under Armour launches merchandise subscription service

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Author: John Wall Street

At the intersection of sports & finance.

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