Under Armour, the athletic apparel company, founded by Kevin Plank, has been appearing in the news. The most recent mentions have been on The New York Times and Forbes due to a federal investigation into Under Armour’s past accounting. The investigation has had an impact on Under Armour’s shares that can be seen on the New York Stock Exchange. The federal investigation is not the only thing that has resulted in a negative effect on Under Armour. Under Armour has reported revenue loss for several quarters and though it is still selling athletic apparel, the sales are underwhelming. Under Armour’s direct to consumer sales are barely there and Under Armour’s move to sell through discount retailers when previous sales outlets closed has resulted in a loss in profit.
However, according to Yahoo! Finance writer Daniel Roberts Under Armour was already in trouble. Under Armour failed to adapt and neglected a key demographic. Roberts claims that Under Armour failed to adapt to the athleisure trend. Kevin Plank created Under Armour as an apparel line for serious athletes and didn’t change to meet the demand of people who like to wear athleisure. This ties in with Under Armour’s brand identity as an apparel line for only athletes and cutting out other customers. Under Armour also failed to create colorful, attractive athletic wear to appeal to women customers. Under Armour’s dark-colored apparel doesn’t appeal to everyone. It’s clear the Kevin Plank didn’t create a product and plan to attract more female customers. To know more about him click here.
The Federal investigation is only the latest issue that Under Armour has had to deal with though former C.E.O Kevin Plank has assured everyone that Under Armour did not participate in accounting practices meant to inflate their revenue. Plank and everyone at Under Armour is cooperating with the investigation and deny any wrongdoing. Under Armour has had to deal with many issues and changes within the company. One of which is Kevin Plank leaving his post as C.E.O and taking on new responsibilities at Under Armour. As of this moment, Under Armour shares are untouchable, and we will have to wait and see as the federal investigation continues to see if Under Armour will come out on top in the new year.
His LinkedIn Profile: https://www.linkedin.com/in/kevin-plank-0a3714148