Under Armour (UAA) reported higher than expected sales and experienced less in losses during Q2, but that didn’t stop the stock from reaching its all-time low ($18.20) as the company cut full year sales forecasts due to weak demand in North America. In an effort to regroup, UAA has said it will cut 280 jobs, terminate leases, work to increase the speed in getting product to market and expand its digital capabilities. Moving forward the company intends to focus on men’s training, women’s, running, basketball and lifestyle, with CEO Kevin Plank, emphasizing lifestyle.
Under Armour shares reach record low as retailer cuts 2% of its workforce, trims 2017 sales outlook
Howie Long-Short opines: The company has tried to grow beyond its legacy in the performance niche, and is discovering competition is much more brutal in the broader market.
Fan Marino says: Once you lose the “cool” factor, it’s over. Under Armour is no longer cool with the kids.