Under Armour Might Drop These Sports
Under Armour might soon be out of the tennis game. The sportswear company is considering ditching smaller categories such as fishing, outdoor gear, and tennis as it tries to reverse a slide in sales, reported the Wall Street Journal. The exit would theoretically help Under Armour cut costs and narrow its focus on its most lucrative sports categories such as footwear. The WSJ also reported that Under Armour co-founder Kip Fulks taking a sabbatical from the company.
Under Armour does break out sales by sports category.
The company has forecast slower revenue growth this fiscal year as the retail marketplace becomes increasingly competitive. Under Armour expects full-year revenue growth of 9% to 11%, compared with its previous forecast of 11% to 12%.
In August, Under Armour announced it was cutting about 2% of its global workforce, or some 280 jobs.
It’s unclear how the exit would affect sponsorship deals it has with several professional tennis players such as Andy Murray and American Sloan Stephens. One person, who was not named, told WSJ that these endorsement deals aren’t expected to be affected.
Under Armour is experimenting with other ways to revive its business. The sportswear company on Oct. 20 launched ArmourBox, a new monthly subscription service that sends customers items every month, two months or three months, according to the subscriber’s wishes.
The move follows the success of subscription-based clothing service startups such as Stitch Fix.