Under Armour is "not anticipating a swift turnaround from the disruption caused by the coronavirus pandemic," according to Jean Palmieri of WOMEN'S WEAR DAILY. UA President & CEO Patrik Frisk said he was "not expecting a quick return to normal," and instead is prepared for "the road ahead to be bumpy." Palmieri notes Frisk remains "confident in the long-term success of the company," but "it’s going to be a while before that is reflected on the bottom line." In mid-May, UA "reported that losses exceeded" $590M. Frisk said that a "'handful' of stores in North America and Europe have reopened," along with "most of the units in China and South Korea." Frisk added that the "'safety protocols' that have had to be implemented have resulted in a different experience for customers." Frisk said by focusing on performance products rather than athleisure or lifestyle, UA can "double our market shake in athletic performance" (WWD.com, 5/27).
KEEP THE FAITH: In Baltimore, Holden Wilen noted UA Founder & Chair Kevin Plank, CFO David Bergman and Frisk yesterday used the company's annual meeting to "make their case to investors for why they believe the sportswear maker will emerge stronger after the COVID-19 pandemic." Unlike some of its competitors in the athletic apparel space, UA "came into the crisis already facing some difficulties." Sales in North America, UA's biggest region, "have been declining." The company also "depends on wholesale more than its competitors and has a much smaller e-commerce business." Frisk said that UA had been "tracking on par with its five-year plan until the pandemic forced stores across North America to close." He added that e-commerce sales are "showing strength" and that the company "will be able to hit the ground running when stores can reopen" (BIZJOURNALS.com, 5/27).
