Under Armour: Challenging promotional trading environment in North America and lacks desirability among younger consumers. On: Challenging amid Nike’s push back into wholesale; apparel is the biggest growth opportunity. Burberry: Renewed focus on its core heritage products; should not compete directly with luxury houses.urberry: Renewed focus on its core heritage products; should notcompete directly with luxury houses.


After interviewing a number of executives in the athletic apparel space, Patrick Ricciardi, Analyst at Third Bridge made a series of remarks regarding Under Armour, informed by the insights from industry experts:

Our experts say Under Armour still lacks the swagger, desirability and street credibility that continue to give Nike and some rivals a stronger cultural edge with younger consumers.

The athletic apparel market has become increasingly crowded, with nearly every major brand now offering athleisure and performance wear. Heavy promotions, price competition and weaker consumer spending are making the environment even tougher. Despite this, Under Armour still has significant growth opportunities because of its heritage in performance fabrics, technical innovation and team sports credibility.

Our experts say Under Armour’s push to reduce SKUs and focus on full-price selling is the right strategy for rebuilding the brand. The company is trying to move away from heavy discounting and raise average selling prices, but this is becoming harder in a market shaped by tariffs, aggressive promotions and increasingly price-sensitive consumers.

Women’s apparel remains one of the biggest long-term opportunities for Under Armour. The brand has historically been male-focused, particularly around American football and team sports. Our experts say the challenge will be growing the women’s business without losing focus on the men’s category, while also competing against stronger women-focused brands such as Lululemon and Athleta.


Patrick Ricciardi, also comments on On Running:

Our experts say On Running’s biggest challenge is maintaining momentum in North America’s wholesale market as Nike pushes aggressively back into the channel. Nike is investing heavily to win back shelf space it lost during its earlier shift toward direct-to-consumer sales.

Apparel remains one of On’s biggest long-term growth opportunities but also one of its toughest categories to crack. While footwear innovation has helped define the brand, apparel is harder to differentiate, and consumers still do not strongly associate On with standout clothing products. Our experts say the company needs a handful of signature apparel pieces that can define the brand in the same way its running shoes have.

On’s premium positioning continues to support some of the strongest margins in the sportswear industry. Unlike Nike and many larger rivals, On rarely discounts products, giving it significant pricing power.

Our experts say the next phase of growth will depend on whether On can expand beyond performance running into the broader sneaker lifestyle market. Retailers such as JD Sports and Foot Locker represent a major opportunity, but On still lacks the same visibility and product mix as more established brands in those channels.



In the luxury space, Yanmei Tang, Analyst at Third Bridge made a series of remarks regarding Burberry.

Burberry’s recent recovery has been driven by a renewed focus on its core heritage products, including check scarves, trench coats and polos featuring the brand’s signature check pattern. Consumers have responded positively to the return of these classic items, which had previously been scaled back.

Third Bridge experts say Burberry should avoid comparing itself directly with luxury houses such as Dior, Louis Vuitton, Balenciaga and Valentino because it lacks the same authenticity and heritage in leather goods. Instead, Burberry is benefiting from aspirational consumers trading down from higher priced luxury brands. Our experts say the company is better positioned as a premium aspirational brand rather than a top tier luxury player.

Our experts say Burberry’s handbag pricing remains one of the brand’s challenges. Bags priced between GBP2,500 and GBP3,000 are seen as too expensive, particularly as the brand still lacks an iconic hero product in leather goods. While Daniel Lee was expected to revitalise the category following his success at Bottega Veneta, our experts say Burberry has yet to produce a breakout handbag that resonates with consumers. Burberry should focus on taking market share from more accessible premium brands such as Coach and Michael Kors with handbags priced closer to GBP1,500 to GBP2,000.

Our experts say Burberry’s outlet business remains structurally important to profitability, contributing close to 40% of group gross margin through inventory clearance and made for outlet products. The outlet channel has faced pressure over the past two years due to weaker demand for newer collections, but healthier assortments centred around core check products are expected to improve performance over the next 6 to 12 months.