The rope is once more being walked by Under Armour.
On Thursday, the company reported revenue that fell quick of Wall Street’s expectations and Kevin Plank, the agency’s co- leader who returned to run the company in March, warned that reviving the clothing brand will take period.
Rope stated that the business anticipates a sales decrease of more than 10 % this fiscal year and plans to employ additional cutbacks as part of a comprehensive reform plan.
Stock rose on Thursday night after Plank spoke with researchers after first dipping after the disappointing quarterly benefits.
” We are merely spread very thin. We have too many goods, to some initiatives—too little of everything”, Plank remarked during a visit with experts, according to the , Wall Street Journal.
The directors of Under Armour believe that their strategy is to become a more “premium brand,” a move that many other clothing companies have attempted to carry out over the years. The company’s personal retail locations and online platforms will be used to reduce the price of discounted products sold to inexpensive customers and concentrate on higher-priced, exclusive offerings.
” Over the next 18 months, there is a substantial opportunity to reinstate Under Armour’s product power through achieving more, by doing less and focusing on our main fundamentals”, he added.
Under the previous chief executive, the company sought to expand the brand away from sports into the then- trendy “athleisure” sector. Additionally, it pushed to expand its audience’s female appeal.  ,  , Now Plank is looking to reverse that strategy, focusing on men’s apparel and hardcore sports gear.
” We will rectify this”, said Plank to analysts, according to CNBC. This emphasis does not necessarily mean that we are putting our footwear or women’s business before all else, but from a sequencing perspective, men’s clothing will be our top priority.
It’s not clear how many employees will be let go as part of the restructuring, although “doing less” suggests the number could be significant. As of March 2023, Under Armour had about 15, 000 employees, with roughly 10, 000 in retail positions, the , Wall Street Journal reported. The company said it anticipates restructuring costs of between$ 70 million and$ 90 million this year, including a reduction in consultants and external experts, particularly in marketing.
