Under Armour: The Rise, Fall, and Potential Comeback of a Sports Apparel Giant ???♂?

Introduction

Hey, corporate professionals! Whether you're a fitness enthusiast or just someone who appreciates quality sportswear, you've likely heard of Under Armour. This brand soared to incredible heights, stumbled, and is now showing signs of a promising comeback. Let's dive into this rollercoaster journey. ??

The Meteoric Rise: More Than Just Sportswear ??

Founded in 1996 by Kevin Plank, Under Armour started as a solution to a sweaty problem. Plank, a former college football player, was frustrated with the cotton t-shirts that would get soaked during games. He invented a synthetic, moisture-wicking fabric that revolutionized sportswear.

The Power of Endorsements ??

Under Armour's rise was fueled by strategic endorsements. They signed deals with top athletes like Tom Brady and Steph Curry, which gave the brand immense visibility and credibility.

The Fall: A Series of Unfortunate Events ??

Around 2016, Under Armour started to lose its momentum. Several factors contributed to this decline:

Retail Woes ??

The bankruptcy of Sports Authority, a major retail outlet for Under Armour, had a significant impact on sales.

Discount Dilemma ??

To boost sales, Under Armour products were made available in more retail outlets like Kohl's, which led to discounting and diluted the brand's premium image.

Accounting Scandals ??

The SEC found that Under Armour used sketchy accounting practices to inflate sales figures, leading to a $9 million settlement and loss of investor confidence.

Corporate Culture ??

Reports of the company reimbursing employees for visits to strip clubs raised questions about the corporate culture.

Missing the Athleisure Trend ??♂?

While competitors like Nike and Adidas capitalized on the athleisure trend, Under Armour focused solely on performance gear, missing out on a lucrative market.

The Comeback: A New Strategy ??

Under Armour has been making strategic changes to turn things around:

Direct-to-Consumer Focus ???

The brand plans to sell directly to consumers through their website and physical stores, bypassing third-party retailers.

Doubling Down on Serious Athletes ??♀?

They sold their app, MyFitnessPal, indicating a focus on serious athletes rather than casual fitness enthusiasts.

Financial Health ??

Their North American sales in 2021 increased for the first time since their peak in 2016, and their profits were higher than ever before.