On Tuesday, Under Armour, Inc. (NYSE: UAA) announced that their North American sales grew 0.3% but is still a let down being that they have a history of double digit revenue growth. They are now cutting their full year sales forecast due to struggling demand in the U.S. and aims to reconstruct a new plan that will involve job cuts and facility closures. Under Armour’s shares dropped more than 7% due to fierce competition from Nike and Adidas.
U.S. shoppers are also abandoning the brand due to lack of clear identity where consumers are uncertain of what the brand actually stands for or which parts of the sports market it specializes in. Under Armour continues to strive to own many different segments of the sports performance market but aren’t aware that consumers are more selective about what they purchase.
The company is super reliant on U.S. sales being that it represents three quarters of their revenue. They want to move from the US/mostly apparel focus to a global/apparel, footwear, and accessories focus instead.