Under Armour Shifts Strategy: Fewer SKUs, Premium Focus

Article Summary

Under Armour is nearing completion of a 25% SKU reduction, a move aimed at streamlining its product offerings and focusing on premium items. CEO Kevin Plank emphasized that the company is prioritizing high-margin products, including a newly developed backpack priced at $140—significantly higher than typical offerings in the category.

Despite this strategic shift, Under Armour continues to face revenue challenges. In Q4, sales declined 11% to $1.2 billion, while full-year revenue dropped 9% to $5.2 billion. Wholesale revenue fell 8% in 2024, and direct-to-consumer sales saw an 11% decline, largely due to a more than 20% drop in e-commerce revenue.

The company has invested $89 million in its turnaround plan and expects total restructuring costs to reach between $140 million and $160 million by the end of the fiscal year. While reducing promotions has helped improve gross margins—reaching 46.7% in Q4—analysts remain cautious about the timeline for revenue stabilization.

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Local Business Types for Broadcasters to Consider Contacting

High-End Sporting Goods Stores – These retailers may benefit from Under Armour’s shift toward premium products, making them strong candidates for broadcast advertising.
Fitness Studios & Personal Trainers – As Under Armour refocuses on high-performance gear, fitness professionals could be valuable partners in promoting premium athletic wear.
Corporate Wellness Programs – Businesses that offer employee fitness incentives and wellness programs may find value in premium athletic gear partnerships.

Three Creative Campaign Ideas for Broadcasters to Consider

Radio Station Commercial Idea – A segment featuring fitness experts discussing the benefits of premium athletic gear, tying into Under Armour’s new product focus.
TV Station Commercial Idea – A visually engaging ad showcasing Under Armour’s evolution, highlighting the shift from mass-market products to high-performance premium offerings.
Digital Advertising Campaign Idea – A social media challenge encouraging users to share their favorite Under Armour gear, reinforcing brand loyalty and engagement.