Under Armour To Exit Up To 3,000 Wholesale Doors, Sell MyFitnessPal
Under Armour reported “considerably better than expected” results in the third quarter, CEO Patrik Frisk said in a statement Thursday. The athletics retailer recorded flat revenue, at $1.4 billion, and executives talked at length on a conference call with analysts about moving toward a more DTC-focused model and improving profitability. At the same time, the retailer announced the sale of MyFitnessPal to investment firm Francisco Partners for $345 million. The deal is expected to close in the fourth quarter, and represents a loss of the majority of Under Armour’s connected fitness revenue ($36.9 million in the third quarter, and $102.6 million year to date), executives said. As part of the retailer’s strategy, executives said Under Armour will exit between 2,000 and 3,000 wholesale doors, of all sizes, with a focus on where the brand is best displayed and moving away from undifferentiated partners. Read more at Retail Dive.
