UNDER ARMOUR UNVEILS FIVE-YEAR PLAN TO RETURN TO PROFITABLE GROWTH
Under Armour chairman and CEO Kevin Plank told investors Wednesday that the company has stabilized its North American business after the second year of a three-year reorganization and is ready to apply a revised strategy for growth to other parts of the world.
“Over the past two years, our global team has worked tirelessly to transform our business – operationally, strategically and culturally,” said Under Armour chairman and CEO Kevin Plank. “With a distinct strategy engineered around a clear, uniquely defined consumer supported by a disciplined go-to-market process and data-driven demand mapping, we have never been more inspired, aligned and capable of achieving our goals.”
“As we execute against our long-term strategy, we remain unwavering in our commitment to protecting and growing the Under Armour brand,” Plank continued. “Led by a strong management team, an accelerated innovation agenda and comprehensive discipline around our commitment to increasing total shareholder return, we look forward to delivering the next chapter in our growth story.”
Plank’s remarks kicked off the Baltimore sports apparel maker’s annual investor day at the company’s Port Covington campus, where Plank introduced the company’s 2023 strategic growth plan which provided an overview of its long-term strategy and key initiatives to deliver sustainable, profitable growth, and shareholder value.
The new five-year plan is architected around two strategic priorities: protect and perform. The first priority is a continued focus on elevating and protecting the Under Armour brand by taking actions to ensure the ability to consistently deliver what consumers, customers and shareholders expect from the company. This means an accelerated innovation agenda, driving even deeper connections through return-driven demand creation and brand experiences, and utilizing an optimized supply chain model along with improving service levels to keep pace within a dynamically evolving market. Simultaneously, the second priority is performing with balance and working to create greater financial and operational agility across the company’s portfolio of businesses to ensure future growth is repeatable and consistent.
Reviewing the company’s expected performance against its long-term growth strategy, chief financial officer David Bergman emphasized foundational operating principles set to drive consistent results over the five-year period, “Focusing on sustainable, profitable growth while increasing returns on capital and generating substantial cash will empower our ability to deliver industry-leading innovation, compelling premium consumer experiences and drive toward our targets, while steadily increasing returns to our shareholders.”
