Under Armour, Already Struggling, Says 2020 Will Be Rocky

Camilla Yanushevsky, an analyst at CFRA Research, called the North American outlook “abysmal” in a note to investors. She noted that Under Armour has “largely missed out in the athleisure trend and continues to lose share to the likes of Nike and Lululemon.”

In trading, the company’s stock slumped more than 16 percent to $16, well off its high of more than $50 in 2015. That price came during a streak of 26 consecutive quarters of 20 percent or greater year-over-year revenue growth.

Various cost-cutting and restructuring moves over the last two years have improved profit margins at the company, which has also gained some control over issues involving inventory and expenses.

There has also been change in the company’s leadership. Last month, Kevin Plank, who founded Under Armour, stepped down as chief executive. He was replaced by Patrik Frisk. Mr. Plank now holds the titles of executive chairman and brand chief, and Mr. Frisk reports directly to him.

Under Armour continues to fall short, however, in attracting consumers to its shoes and apparel. That is particularly true in North America, where revenues slipped 2 percent last year to $3.7 billion.

Article source: https://www.nytimes.com/2020/02/11/business/under-armour-earnings.html?emc=rss&partner=rss