Under Armour - The Rise and Fall...And Rise Again

Company Man
13 Apr 202210:37

Summary

TLDRUnder Armour, a once rapidly growing athletic brand surpassing Adidas in the US, faced challenges from 2016 with slowing sales growth and market share loss. Key issues included reliance on bankrupt retailers, discounting, questionable accounting practices, and a focus避开 athleisure trend. Despite leadership changes and a five-year turnaround plan, the brand's future remains uncertain. The video explores Under Armour's rise, fall, and potential comeback.

Takeaways

  • 🚀 Under Armour experienced rapid growth and became the second largest athletic brand in the US around 2015.
  • 📉 The brand's sales growth slowed down significantly after 2015, leading to a loss of market share and investor confidence.
  • 💼 Leadership changes occurred, including the departure of founder and CEO Kevin Plank in 2019.
  • 👕 The company started with a single product, a synthetic fabric t-shirt designed for athletes, and expanded from there.
  • 🎥 Under Armour gained significant exposure through featuring in movies like 'Any Given Sunday' and 'The Replacements'.
  • 🛒 The bankruptcy of Sports Authority in 2016 negatively impacted Under Armour's sales as it was a major retail outlet.
  • 💸 The brand resorted to discounting and questionable accounting practices to inflate sales figures.
  • 🏢 Issues with corporate culture, such as reimbursements for strip club visits, tarnished the brand's image.
  • 👖 Under Armour avoided the athleisure trend, focusing instead on performance wear for serious athletes.
  • 🔄 The company is attempting a comeback with a five-year turnaround plan, including cost-cutting measures and a focus on direct-to-consumer sales.

Q & A

  • What was the significant event around 2015 for Under Armour?

    -In 2015, Under Armour surpassed Adidas to become the second largest athletic brand in the US.

  • What was the turning point for Under Armour's sales growth?

    -The sales growth of Under Armour slowed down considerably after 2015, and their North American sales started decreasing, leading to Adidas taking over the number two spot.

  • How did Under Armour's stock price perform from 2015 to 2020?

    -Under Armour's stock price fell significantly from its all-time high in 2015 to the end of 2020, with a $100 investment dropping to $41.

  • What was the origin of Under Armour as a company?

    -Under Armour originated from Kevin Plank's invention of a synthetic fabric t-shirt designed for athletes, which he started selling from his grandmother's townhouse.

  • How did Under Armour get its name?

    -The name 'Under Armour' was suggested sarcastically by Kevin Plank's brother, and Plank liked it so much that he immediately went to fill out the paperwork for the company name.

  • What was the significance of the movie 'Any Given Sunday' for Under Armour?

    -The movie 'Any Given Sunday' provided Under Armour with significant exposure as their products were prominently featured in the film, leading to a boost in sales and recognition.

  • What was one of the major setbacks for Under Armour in terms of sales channels?

    -The bankruptcy and closure of Sports Authority in early 2016, which was a major outlet for Under Armour products, negatively impacted their sales.

  • What was Under Armour's response to declining sales figures around 2017?

    -Under Armour responded to declining sales by making their products available in more retail outlets and resorting to discounting, which compromised the brand's reputation.

  • What accounting issues did Under Armour face that led to a settlement with the SEC?

    -Under Armour was accused by the SEC of using sketchy accounting practices to inflate sales figures by shipping orders ahead of schedule over six quarters, leading to a $9 million settlement.

  • What was the controversy surrounding Under Armour's corporate culture in 2018?

    -In 2018, it was exposed that Under Armour would reimburse employees for visits to strip clubs, which led to public criticism and the company committing to making their workplace more respectful and inclusive.

  • How did Under Armour's focus on performance wear over athleisure impact them?

    -Under Armour's focus on performance wear for serious athletes, rather than capitalizing on the athleisure trend, left them exposed during the pandemic when sports leagues shut down and people sought more casual, comfortable clothing.

  • What steps has Under Armour taken to recover from their decline?

    -Under Armour has been following a five-year recovery plan, bringing in new executives, ending certain sponsorships, and focusing on direct-to-consumer sales to strengthen the brand and lower costs.

  • What were the results of Under Armour's recovery efforts in 2021?

    -In 2021, Under Armour's North American sales increased for the first time since 2016, and their profits for the year were higher than ever before, indicating a successful recovery.

Outlines

plate

هذا القسم متوفر فقط للمشتركين. يرجى الترقية للوصول إلى هذه الميزة.

قم بالترقية الآن

Mindmap

plate

هذا القسم متوفر فقط للمشتركين. يرجى الترقية للوصول إلى هذه الميزة.

قم بالترقية الآن

Keywords

plate

هذا القسم متوفر فقط للمشتركين. يرجى الترقية للوصول إلى هذه الميزة.

قم بالترقية الآن

Highlights

plate

هذا القسم متوفر فقط للمشتركين. يرجى الترقية للوصول إلى هذه الميزة.

قم بالترقية الآن

Transcripts

plate

هذا القسم متوفر فقط للمشتركين. يرجى الترقية للوصول إلى هذه الميزة.

قم بالترقية الآن
Rate This

5.0 / 5 (0 votes)

الوسوم ذات الصلة
SportswearBrand GrowthBusiness StrategyAthletic ApparelMarket TrendsFinancial DeclineLeadership ChangesProduct InnovationCultural ShiftPerformance Wear
هل تحتاج إلى تلخيص باللغة الإنجليزية؟