Under Armour Restricts Inventory Despite High Demand
May 13, 2021
Under Armour is “tightening” how it thinks about inventory, CEO and President Patrik Frisks said on the company’s latest earnings call. The retailer said it was opting for this approach, rather than trying to chase demand and possibly spread itself thin. Fisk said the goal is to ensure that the right products are at the right places, a strategy that Under Armour has stuck with, despite high demand. The company’s global e-commerce business was up 69% YoY, CFO David Bergman said on the call. In Q1, this constrained-inventory strategy resulted in 9% less inventory and higher margins. As executives anticipate increased freight expenses to continue, this becomes more important. Read more at Retail Dive.
