Business

Under Armour refocuses on men’s clothing as it restructures business

Under Armour Inc. is initiating a restructuring plan to turn around its mounting losses. 

Founder Kevin Plank, who was brought back as CEO last month after stepping down at the end of 2019, told analysts that he is working on cost management and implementing necessary strategies to grow the brand. 

This includes an undisclosed number of layoffs. The company said it plans to take a charge of between $7 million and $15 million in employee severance and benefits costs.

FOX Business reached out to Under Armour for comment.

UNDER ARMOUR, STEPHEN CURRY TO TEAM UP LONG-TERM WITH PARTNERSHIP EXTENSION

The company will also re-prioritize its core men’s apparel business, which the company took its “eye off of,” Plank told analysts on a Thursday earnings call. 

Under Armour

Under Armour apparel is displayed at a Dick’s Sporting Goods store on May 16, 2024, in Petaluma, California. (Justin Sullivan/Getty Images / Getty Images)

According to Plank, who stepped down after a series of scandals, the loss of focus on its core men’s apparel business permitted the company, particularly in North America, “to become more promotional and commoditized,” which “has significantly impacted our brand’s perception.” 

“We will rectify this,” Plank said, adding that “this focus does not mean that we are deprioritizing our footwear or women’s business per se. But from a sequencing perspective, men’s apparel will be our highest priority.” 

The decisions the company makes will put “pressure our top and bottom line in the near term,” Plank said. 

Under Armour

Under Armour apparel is displayed at a Dick’s Sporting Goods store on May 16, 2024, in Petaluma, California.  (Justin Sullivan/Getty Images / Getty Images)

In the three-month period ending March 31, the company’s global revenue slipped 5% to $1.3 billion. In North America, it dropped 10% to $772 million. 

Plank admitted to analysts that “this is not where I envisioned Under Armour playing at this point in our journey.” 

GET FOX BUSINESS ON THE GO BY CLICKING HERE

In the fiscal year 2025, Under Armour projected that revenue would be down at a low-double-digit percentage rate, which includes a 15% to 17% decline in North America “as the company works to meaningfully reset this business following years of heightened promotional activities.”

Related posts

These are the US cities with the highest inflation

Daily

Judge says Visa, Mastercard can likely handle swipe-fee settlement bigger than $30 billion

Daily

McDonald’s to buy Israel franchises as war continues between Israel and Hamas

Daily

Leave a Comment