Under Armour is laying off 50 corporate positions across “several functions,” a spokesperson confirmed to Retail Dive Wednesday.
“We made this decision to help reduce expenses to better align with our next chapter of growth, which is part of our continuous improvement plan towards profitability,” the company said in a statement. “We sincerely appreciate the commitment and contributions these teammates made and are supporting them during this transition. The impacted teammates will receive severance, healthcare benefits and career outplacement support.”
The decision comes just a few months after 25-year Marriott veteran Stephanie Linnartz arrived as CEO. Patrik Frisk stepped down in June last year, after two years trying to turn the business around. Under Armour’s growth has trailed others in the industry, with Lululemon surpassing the retailer by revenue in 2021. For 2022, Under Armour’s sales grew 3%, reaching $5.9 billion.
When the retailer discussed its annual results in May, Linnartz also outlined a new strategy for the retailer, with three top priorities: drive U.S. sales, elevate design and product, and drive global brand heat. Linnartz estimates that Under Armour will return to growth in the key market of North America in 2025 — the retailer saw sales decline 1% in that region in 2022.
The company has also begun acknowledging athleisure, with plans to add more lifestyle products and build out a “live” category of its business. Executives have said that expanding into athleisure rather than focusing solely on performance — which has been its driving force in the past — could triple its total addressable market.
“The consistency of great design, fit and the all-important style factor across the entire offering is not where we need it to be,” Linnartz said in May. “We will go after women harder than this company has ever seen. Full stop.”
Under Armour also started Linnartz’s tenure by signing another long-term contract with NBA star Steph Curry, who became president of the Curry Brand and will work on product development, business and marketing efforts. Curry’s partnership with Under Armour will expand beyond basketball to include efforts in golf, women’s, youth and sportstyle as well.
