Eager to move ahead with its brand reset strategy complete with Digital First and premium selling environment approaches, Under Amour senior management says the company may not have enough inventory for the “highly promotional” remainder of 2020. The company is anticipating a 20 to 25 percent revenue decline and gross margin pressure during the year’s second half as more of its products flow through off-price channels. The overall sales drop may be steeper in the fourth quarter as more Spring ’21 product deliveries are delayed until early next year, the firm said.

Despite that anticipated product sell-off amid projected second-quarter COVID 19 store closures, Under Armour is reducing its reliance on the off-price distribution channel down to a “mid-single digit” percentage of 2020 global sales.

“We believe a lot of the companies out there have a lot of excess inventory they’re going to be trying to unload in the third and fourth quarters,” CFO Dave Bergman told analysts last week. “And it’s going to make it a very price-pressured environment.”

Meanwhile, Digital First — designing and developing products in a 3D digital environment, including digital sampling and digital selling capabilities across the company — continues to move forward. Later this year, the company will introduce its fourth cushioning platform in basketball before taking it into the running category for spring/summer 2021.

Under Armour senior management said it understands the company needs to strike a proper balance of e-commerce and full-price retail business going forward to deepen its connection with consumers. The strategy may include the Baltimore company opening more full-priced retail stores beyond the 18 Brand Houses open in North America.

Second-quarter revenues declined 40 percent on a constant currency basis to $708 million. North American sales slid 45 percent to $450 million during the period ended June 30, as worldwide footwear sales slipped 35 percent to $185 million.