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Under Armour’s New Strategy Focuses on Footwear and Women

Under Armour athlete Jayde Riviere.

Dubbing the effort, ‘Protect This House 3’ or ‘PTH3’ for short, Under Armour under new CEO Stephanie Linnartz intends to focus on brand, product and the U.S. market going forward with particular attention on footwear, the women’s market and a “sportstyle” segment where “style and design meet performance.” While the execution will not happen overnight, Linnartz said the company will focus on more consistent product marketing along with disciplined channel segmentation immediately.

In Q4 ended March 31, Under Armour reported net income of $170.5 million against a year-ago loss of $59.6 million on a 7.5 percent revenue increase to nearly $1.4 billion. While sales rose by double-digits in both the EMEA and Asia-Pacific regions, they increased by 2.5 percent in North America to $862.2 million. Footwear sales were 27 percent higher year-over-year at $377.4 million, helped by a solid response to the February launch of the $150 retail Slip Speed that will shortly be launched elsewhere in the world.

Under Amour will begin its PTH3 strategy at the upcoming women’s World Cup. Sales to women currently account for less than 25 percent of brand revenues and Under Armour faces the challenge of developing more ‘must have’ products for the audience. Additionally, the company needs to make its products more ‘premium focused,’ including in footwear, seen as the brand’s most significant growth category. Part of that expansion will be reached through more collaborations, outside input from sneaker and brand experts on product development, and by repositioning some existing styles ahead of new rollouts in specific distribution channels. In performance apparel, meanwhile, the group sees opportunity in expanding the Curry brand to golf.

The company’s annual profit, benefitting from a $101.0 million tax benefit, rose 74 percent in FY23 to $386.8 million as total revenues rose by 6 percent to $5.9 billion. Annual footwear sales grew by 16 percent to $1.46 billion.