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New CEO and Target Consumer for Under Armour


Under Armour, which will welcome new CEO Stephanie Linnartz on Feb. 27, is working to evolve its marketing and omnichannel strategies to better connect with 16- to 20-year-olds, many of whom are varsity athletes. Interim CEO Colin Browne stresses that the age group of high school and college consumers is the brand’s target audience, not its target market.

“We’re looking to work with and build relationships with them, which would allow us to amplify the brand as part of our broader strategic evolution,” Browne told analysts last week.  

Right now, Under Armour is dealing with a softer retail environment in its home North American market with bloated inventory levels due to the amount of product that has hit stores over the last six months. But yesterday, the company, which is opening a pop-up store in New York City’s Flatiron District, globally rolled out its new Slipspeed training footwear style (pictured above) that features a convertible heel allowing the wearer to switch easily between active and recovery modes. 

Meanwhile, in its recently completed Q3 ended Dec. 31, Under Armour reported a 9.9 percent increase in operating income to $94.7 million on 3.4 percent revenue growth to $1.58 billion. But gross margin slipped 650 basis points to 44.2 percent. North American operating income fell 18 percent to $198.9 million on a 2.4 percent revenue dip to $1.04 billion. Global footwear sales stepped up 25 percent to $354.4 million, but apparel revenues declined by 2.1 percent to $1.075 billion despite strength in golf and team.

The company’s current FY23 outlook pegs operating income at $290 to 310 million as total revenues rise in the low single digits.