Under Armour Cutting 2% of Workforce, Restructuring Business
Under Armour announced that it will be cutting 2 percent of its workforce — about 280 jobs — as it restructures the business. The sports apparel and lifestyle brand is facing slumping sales, reporting that it now expects revenue to grow 9 percent to 11 percent, lower than the previous forecast of 11 percent to 12 percent. Under Armour also said it closed 33 factory outlets and 23 Under Armour-branded stores in the past 12 months ending June 30.
"We are utilizing 2017 to ensure that operations across our diverse portfolio of sport categories, distribution channels and geographies are optimized as we are building a stronger, faster and smarter company," CEO Kevin Plank said in a statement.
Total Retail’s Take: Under Armour is going through a transition phase right now, from a performance retailer focused on sporting goods to a multichannel, broader lifestyle brand. The retailer has recently been testing new partnerships to grow the brand. For example, Kohl’s began selling Under Armour products in its stores back in March. Plank also said that Under Armour intends to increase its speed in getting products to market as well as growing the retailer's digital capabilities. These changes may help the brand bounce back from a disappointing year.