Under Armour, the company behind those heinous Steph Curry shoes, was the fastest growing sportswear company in the country until very recently. They passed Adidas two years ago to become the second-largest manufacturer in the industry (Adidas recently overtook them), and at one point an MVP in each of the major sports was endorsed by Under Armour.
CEO Kevin Plank announced today that Under Armour’s fourth quarter revenue was $1.31 billion—when analysts expected it to be $1.41 billion—and that the company was forecasting 2017 revenue to grow by only 11 to 12 percent, when he had previously said the company’s revenue would grow at least 20 percent the next two years. As a result, the value of Under Armour’s Class A shares fell a whopping 26.2 percent this morning, and analysts projected that their market value fell from around $11 billion to around $8 billion today thanks to the stock dip.
Plank also said that the company’s CFO Chip Molloy would be stepping down for “personal reasons.” The announcement of lower than expected revenue, slowing growth, and high-level personnel change has investors spooked. Apparently, the company blames both the decline in big-box stores and shopping malls, as well as their own ugly clothes, for the troubles:
Meanwhile, the company copped to missing the mark on its clothing assortment. Its basic, staple items didn’t catch customers’ eyes in a competitive environment. Plus, executives said, they didn’t offer enough options for style-conscious shoppers, the ones going wild for the “athleisure” trend.
“We need to become more fashion,” Plank said on the conference call. “The consumer wants it all. They want product that looks great, that wears great, that you wear at night with a pair of jeans, but also that performs for them.”
Another factor to consider: Those shoes were really ugly.