UNDER Armor buyers will see big changes in the future as the company restructures after falling sales.
These changes will include fewer discounts for buyers, as well as another round of layoffs.
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Under Armor co-founder Kevin Plank warned that in the wake of the company’s financial struggles, changes for the brand are pending.
He resumed his role as CEO in March and announced that sales would decline by more than 10% this fiscal year, for Wall Street Journal.
“We are simply doing too much. There are too many products, too many initiatives, too many,” Plank said on a conference call with analysts.
The company’s shares peaked in 2015, but have struggled financially in recent years as they have gone through various leaders and restructuring plans.
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In the future, the CEO plans to build the Under Armor brand by focusing on telling a better story with fewer products and with greater impact.
The company will decrease the number of discounted items it sells to wholesale customers and begin selling exclusive products at higher prices in Under Armor stores and digital channels.
Additionally, the sporting goods company’s restructuring plan includes a series of employee layoffs.
The company did not say how many employees would be impacted, although it had around 15,000 workers in March last year.
Several brand consultants and external experts will also be laid off, especially in the marketing area.
The proposed plan will take about 18 months to implement, according to executives.
The proposal comes a year after Stephanie Linnartz, former CEO of Under Armour, presented her restructuring plan for the struggling brand.
The company will revitalize its brand through rapid innovations rather than focusing on popular and easily achievable fashion trends.
To do this, Under Armor plans to launch products within six to 12 months, which it did with the recent launch of its $45 StealthForm hat that can’t be crushed.
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