Under Armour Outlines Painful Restructuring Plan Including Layoffs, Product Reduction and Fewer Promotions

returning to Under Armour as its chief executive officer, Plank, a 25 percent reduction in product, a renewed focus on its historic strength in menswear, substantially less discounting and a new communication strategy to get the message out to consumers.

For fiscal 2025, overall sales are expected to be down in the low double digits, and adjusted earnings per share are expected to tally 18 cents to 21 cents, well below the 59 cents analysts forecast on average. But Plank doesn’t expect to run the same plays as he did when starting the company because the climate today is much different.

“Too many areas of our product strategy have been designated as priorities,” Plank said. “This has caused operational inefficiency and a strain on resources, which has diluted our ability to have a consumer-centric point of view, consistent storytelling and an effective go-to-market process.

But creating innovative products can fall short without a strategic marketing plan to tout their attributes and Under Armour is currently searching for a chief marketing officer to lead that charge.

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