Under Armour has fallen into a bit of a rut.
The company, which has taken a hit to sales amid the pandemic, said in November it was under federal investigation over its accounting practices.
On October 22, the company’s founder, Kevin Plank, announced he would be stepping down from his role as CEO after 23 years. Plank will be replaced by COO Patrik Frisk.
It has had massive problems in the past, including $1.3 billion in leftover merchandise in 2018, shrinking popularity among teens, and a scandal involving executives going to strip clubs and expensing the outings.
We traced the rise and fall of Under Armour, from its early days as a powerful force in the athletic-wear sphere to its current struggles and decline.
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Under Armour is in trouble.
While similar sports retailers like Nike and Adidas are also posting slumping sales amid the impact of the coronavirus pandemic, Under Armour was already sputtering well before the outbreak. Recently, things have taken another turn for the worse.
The Maryland-based sportswear giant said in May it was working to extend payment terms for its athletes as a measure to cut costs amid dropping sales. On Saturday, the company announced it is terminating its partnership with UCLA, a $280 million deal signed in 2016 and meant to last 15 years. In a statement to Fox Business, the company cited not receiving marketing benefits “for an extended time period” that the company had paid for.
This isn’t Under Armour’s first rough patch. The company has experienced many ups and downs in its over 20-year history. …read more
Source:: Business Insider