Under Armour moving forward after shake-up
Print Edition
Huge Under Armour billboards dot the streets of Baltimore, with photos of famous athletes sponsored by the sports equipment supplier, like heavyweight boxer Anthony Joshua or quarterback Tom Brady.
And the signs feature the company鈥檚 new slogan: 鈥淭he Only Way is Through.鈥
That catchphrase could well apply to the company itself as it tries to move forward after a tumultuous 2019, marked by a drop in sales in North America, news of investigations into accounting fraud and a leadership shake-up.
In early January, Patrik Frisk took the reins of Under Armour, succeeding company founder Kevin Plank, who retained his post as executive chairman of the board and pledged to remain actively involved in the management of the business.
The announcement in late October of Plank鈥檚 exit and Frisk鈥檚 promotion from his post as chief operating officer raised some eyebrows.
But a few days later the company confirmed a report by The Wall Street Journal that US authorities 鈥 the Justice Department and the Securities and Exchange Commission 鈥 were investigating its accounting practices.
The probe began in the summer of 2017 but the company had not revealed it to the investing public.
Frisk stepped in at this delicate time with the mission to restore the brand鈥檚 tarnished image, which was also damaged by revelations of employees visiting strip clubs at company expense, a practice halted in early 2018.
At an event at the group鈥檚 headquarters in Baltimore last week, 56-year-old Frisk said preparing the new advertising campaign had been 鈥渁 long journey for the team.鈥
鈥淵ou want to get this out quickly. But you鈥檙e holding it back and you want to get it perfect,鈥 Frisk said.
Launching the campaign with great fanfare, Under Armour called on a number of its superstars: former swimming champion Michael Phelps, skier Lindsey Vonn, who recently retired from the slopes, French judoka Teddy Riner, and NBA star Joel Embiid of the Philadelphia 76ers, who took advantage of the occasion to launch his own brand of sneakers.
Not fashion
To distinguish itself from rivals who have invested massively in the 鈥渁thleisure鈥 sector 鈥 fashion inspired by sports but where actually playing is not a requirement 鈥 Under Armour emphasizes the quality of its products.
鈥淲e鈥檙e not fashion, we鈥檙e performance,鈥 says Jim Mollica, head of digital strategy and marketing for Under Armour.
鈥淚t doesn鈥檛 mean that our products don鈥檛 have great design. They have to. But at the end of the day, if it鈥檚 design for design sake, we shouldn鈥檛 be doing it.鈥
Among the innovations presented at the Baltimore headquarters, Under Armour unveiled a T-shirt with fibers that absorb sweat at record speed, a bra that offers better support during exercise, and a space suit developed for Virgin Galactic, the company of British billionaire adventurer Richard Branson who promises to make space a tourist destination.
Under Armour also is betting on digital technology, in particular with its connected sneakers. The shoes are equipped with a chip capable of tracking the slightest movement, offering athletes a wealth of data on their training and progress using mobile apps.
鈥淲e have the largest health and fitness community in the world with 285 million registered users on our digital platform,鈥 Mollica said.
Some industry experts, however, predict difficult months ahead for the manufacturer, which on February 11 will announce results for the final quarter of 2019 and present its annual forecasts.
鈥淚 think Under Armour kind of lost it many years ago,鈥 Chip Wilson, founder of competitor Lululemon, said in early January on CNBC.
He said the 2017 bankruptcy of sporting goods retail chain Sports Authority, one of Under Armour鈥檚 key partners, was a blow to the brand, which still has not found a way to adapt its sales model.
Noting the continued slowdown in sales in the North American market, JP Morgan analysts have cut their target for Under Armour鈥檚 share price for the 2020 fiscal year.
Created by Plank in 1996, Under Armour experienced a meteoric rise, putting it in competition with long-dominant brands Nike and adidas. In 2018, the company鈥檚 turnover was US$5 billion, compared with revenue of US$36 billion for Nike and nearly US$22 billion for adidas.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 娌狪CP璇侊細娌狪CP澶05050403鍙-1
- |
- 浜掕仈缃戞柊闂讳俊鎭湇鍔¤鍙瘉锛31120180004
- |
- 缃戠粶瑙嗗惉璁稿彲璇侊細0909346
- |
- 骞挎挱鐢佃鑺傜洰鍒朵綔璁稿彲璇侊細娌瓧绗354鍙
- |
- 澧炲肩數淇′笟鍔＄粡钀ヨ鍙瘉锛氭勃B2-20120012
Copyright 漏 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
