Until very recently, Under Armour was a surging company that had doubled its revenues in a few short years and was actively endorsing the MVPs of the NFL, NBA, and National League. However, in January, company stock plunged after CEO Kevin Plank admitted that revenue was slowing and that the company was being forced to lower its internal expectations. The decline of big box sporting goods stores and slow sales of Steph Curry’s signature shoes haven’t helped matters.
Today the company announced a second-quarter loss, projected that 2017's annual revenue would be smaller than initially expected, and laid off two percent of their 15,000 workers (approximately 280 people). Stock prices reportedly fell eight percent in the wake of the announcement.
Plank said that UA would begin to focus more on online sales as well as fashion-focused apparel and shoes. He also said that the company’s days of astronomic growth were likely behind them, per CNBC.
“After 6½ years of more than 20 percent top-line growth that ended in the fourth quarter of last year, we are clearly operating in a different environment, particularly in our largest market [of] North America,” Plank told analysts and investors on Tuesday.
Plank said they’d focus on the more affordable end of the shoe market ($80-$100), which might still be too much to ask for the Chefs.