📉 Sales Take a Hit
Under Armour’s Q3 revenue fell 5.7% to $1.4B. North America saw a 7.8% decline, bringing sales down to $844M. Direct-to-consumer revenue dropped 9%, with e-commerce sales plunging 20% as the company scaled back promotions.
🛒 Wholesale Holds Steady
While e-commerce suffered, wholesale sales were down just 1% at $705M. CEO Kevin Plank announced plans to expand wholesale accounts in 2025, focusing on boutique retailers. The company is working to regain shelf space and boost brand presence.
👕 Product Strategy Shift
Under Armour is cutting SKUs by 25% and investing in high-end products. New leadership hires, including chief product officer and chief design officer John Varvatos, are driving this shift. However, new products won’t hit shelves until late 2025.
📣 Marketing & Loyalty
The loyalty program now has 17M members, shifting focus from discounts to community-building. CFO Dave Bergman highlighted Kohl’s as a key retail partner. Meanwhile, tariffs won’t be a major issue, as Under Armour sources less than 3% of its products from China.
Is Under Armour’s wholesale push enough to fuel a comeback?
