UnderArmour, a major American sportswear manufacturer, said that its business turnaround process will take longer than previously expected, and its sales in the United States are expected to decline in 2020. The Wall Street Journal reported that Under Armor’s sales in the North American market fell by 2% in 2019 and are expected to fall by more than 5% in 2020. North America remains the company’s largest market.
UnderArmour announced a restructuring plan that will be implemented this year, including abandoning the opening of a New York flagship store. If implemented, the plan will cost $425 million. This year the company is promoting comprehensive savings and plans to save US$50 million in costs.
UnderArmour CEO Patrik Frisk said that past promotions have made consumers reluctant to buy full-price products. So the company is investing in marketing campaigns, building a better e-commerce website and working to reduce its reliance on discount retailers.
Before 2017, UnderArmour had good operating performance and was one of the fastest-growing apparel brands in the United States. Its revenue was no less than 20% for 26 consecutive months. However, Sales fell into weakness after 2017. In order to purge the company’s operations, it subsequently launched business restructuring actions such as layoffs, and appointed Patrikt Frisk as CEO in October 2019.
Patrik Frisk originally worked for VF Group for 10 years and can be said to be a senior talent in footwear management. In order to be different from other well-known sports brands that pursue sports and leisure styles, Frisk is more Focus on UnderArmour developing products that enhance sports performance and appeal to consumers.
