- Kristopher Fraser |
As Under Armour continues to under perform, Kip Fulk, the brand's co-founder, is taking a sabbatical leave. The news was reported on Business of Fashion.
It has also been reported by The Wall Street Journal that Under Armour is considering exiting categories such as tennis and finish in a proposed restructuring. The news caused Under Armour's shares to plummet to 16 dollars and 80 cents on Monday. The company has lost over half its stock value over the past year.
Last year, Under Armour took a major hit during the holiday season, including brick-and-mortar retail bankruptcies that hurt the company’s ability to get stock onto shelves. Compared to other competitors, Under Armour was hurt the most by these because the majority of their revenue comes from North America. Slower retail traffic and more promotions at an earlier points in the holiday season, along with deeper discounting than in previous years also hurt their bottom line.
After two straight quarterly losses this year, Under Armour cut its forecast.
Going forward, the company is hoping to expand its retail presence overseas, which currently only account for 1/5 of Under Armour's sales.