It was previously seen as a viable competitor to Nike. But at the moment, Under Armour, founded by a 23-year-old former collegiate athlete, is struggling to “just do it.”

Instead, the brand championed on the basketball court by Stephen Curry and on the golf course by Jordan Spieth is now struggling — badly — to find its footing in an increasingly competitive and crowded sportswear marketplace for regular people, where younger shoppers are more enamored with newer entrants like Hoka and On running shoes.

Under Armour’s annual sales have been lackluster at best in recent years, and the stock has fallen 88% since its all-time high in 2015. According to industry observers, the company is mired in an uncomfortable mix of challenges, including an identity crisis, many management disputes, neglecting emerging market trends to its harm, and a rapid succession of CEOs.

Under Armour Was A Real Threat To Nike. Now It’s Fighting To Stay Relevant

One of them is the company’s creator, Kevin Plank, who has returned as CEO for the second time after being removed in 2019. Like Starbucks founder Howard Schultz and Disney CEO Bob Iger, Plank seeks to right the ship at Under Armour.

“When Under Armour was growing at 20% or higher, people saw it as a legitimate competitor to Nike,” said David Swartz, senior equities analyst at Morningstar, in an interview with CNN.

“It was like On or Hoka a decade ago. The upstart athletic brand was making significant advances against Nike, the industry’s main brand. People regarded it as a firm that could break through and take Nike’s market share among serious athletes,” Swartz explained. “That actually did happen for a while, but then that didn’t last.”

Plank founded Under Armour in 1996 to provide what the name implies: a protective layer of clothing worn by competitive athletes sweating it out in the heat of the game.

The initial product was “The Shorty,” a fitted T-shirt composed of moisture-wicking fabric that professional athletes could wear beneath their uniforms to stay dry. The famous Under Armour “U” and “A” logo was deliberately placed on the neckline to keep it visible.

The T-shirt finally propelled the brand to the masses after gaining popularity among elite sportsmen immediately. Under Armour went public in 2005 due to the startup’s rapid success. Its early tagline was “Protect This House.”

By 2010, the company had surpassed $1 billion in revenue. Five years later, revenues topped $4 billion. But then the impetus began to ebb.

Prolonged period of discomfort.

Under Armour has struggled for the past eight years, and the situation does not look to improve.

The company announced a corporate restructuring on Thursday, following a 10% drop in North American revenues in the most recent quarter. The corporation has issued a bleak prediction for the current fiscal year, expecting sales to fall 15% to 17%. Layoffs would be part of the attempt to right the ship, although officials did not say how many people would lose their jobs.

Under Armour has launched a $500 million share buyback program to reward shareholders.

During the earnings call on Thursday, Plank stated that he will lead a business reset that focuses on selling fewer but more innovative products to meet the needs of athletes, significantly accelerating product development, refocusing on the men’s apparel category, and reducing product discounts

“We’re just doing too much stuff. There are too many items and projects. To rebuild this brand, we must be laser-focused and prioritize what needs to be done so that our staff know exactly what to do and have a clear definition of success for them,” Plank added.

Under Armour Was A Real Threat To Nike. Now It’s Fighting To Stay Relevant

It cannot be denied that management concerns have plagued the company for years, Swartz stated.

“The company has essentially had five CEOs in the past five years, if you count Kevin Plank twice,” stated Swartz. Plank was announced as CEO again in March, following Stephanie Linnartz’s brief year-long stint.

During the analyst call Thursday, Plank admitted that regular C-suite churn has significantly hindered success.

“With several CEOs and heads of product, marketing in North America over the past half-decade, ongoing turnover of critical leadership has been central to our inability to stay agile and decisive,” he stated.

According to Swartz, “things really started to fall apart” at Under Armour beginning in 2016. A major problem developed when an essential distribution route for the company went bankrupt and closed stores.

Under Armour’s products are mostly offered through athletic goods merchants and department stores, such as Macy’s and Kohl’s, as well as online.

“When Sports Authority declared bankruptcy in 2016, Under Armour suffered greatly. It was a significant customer for the brand, as was Dick’s Sporting Goods,” Schwartz stated.

UCLA sued Under Armour in 2020 after terminating a $280 million sponsorship agreement. The lawsuit claimed that Under Armour was struggling before Covid-19 and used the epidemic as an excuse to withdraw from the agreement.

According to Eric Smallwood, president of Apex Marketing Group, a sports and entertainment organization that examines sponsorships and advertising campaigns, the brand’s long-term celebrity-brand collaborations are performing well.

“Under Armour’s partnership with ‘The Rock’, Dwayne Johnson, has been quite successful. They’ve expanded into the United Football League, which Johnson co-owns,” Smallwood explained. “Their uniforms are Under Armour.”

According to Smallwood, the brand is also making advances in golf, and the Stephen Curry alliance has kept it visible in the basketball world.

Under Armour Was A Real Threat To Nike. Now It’s Fighting To Stay Relevant

In 2013, basketball superstar Stephen Curry, probably the finest shooter in history, notably signed for Under Armour over Nike. Meanwhile, Joel Embiid, the brand’s other prominent NBA star, left Under Armour in 2023, just months after being awarded the league’s most valuable player.

Embiid inked a sneaker contract with Skechers last month. Under Armour reportedly bid strongly for WNBA star Caitlin Clark, who is expected to sign with Nike.

“The bottomline for Under Armour is for the brand to be clear about its identity,” he stated. “Are they a shoe company?” Are they an apparel company? Everyone else eventually replicated their moisture-wicking undershirt. Then, perhaps they experienced an identity crisis. It will come down to determining if they want to expand into a lifestyle brand or stick with performance-based products.

SOURCE – (AP)

Boeing whistleblower John Barnett committed suicide, according to a police report released on Friday, bringing an investigation into the shocking death of a longtime employee who raised concerns about the airplane manufacturer’s safety and production standards – and who sued the company, alleging illegal retaliation against him.

Barnett, 62, was discovered dead in a vehicle on March 9 from a self-inflicted gunshot wound in Charleston, South Carolina. Officers were summoned to perform a welfare check on Barnett at a Holiday Inn after he failed to appear for a deposition in his complaint against Boeing, according to his lawyers and a police incident report.

Boeing Whistleblower Died By Suicide, Police Investigation Reveals

When responding officers arrived, they discovered Barnett deceased in the driver’s seat of a truck in the parking lot. He was clutching a firearm. The initial police report also stated a message in the truck.

However, in a statement released after his death, Barnett’s lawyers stated that his deposition was nearing completion and that he appeared to be in high spirits.

“We saw no sign that he would commit suicide. “No one can believe it,” his attorneys, Robert Turkewitz and Brian Knowles, stated in a statement on March 12. “The Charleston police need to investigate this fully and accurately and tell the public what they find out.”

The Charleston Police Department announced Friday that the Charleston County Coroner’s Office had decided that Barnett had committed suicide.

The inquiry revealed that Barnett was shot in the head at close range, with the firearm located in his right hand. A notebook was also discovered in the front seat of the car, indicating that “he was going through a period of serious personal distress,” according to a police press statement.

Police provided CNN with a photograph of a note left in the car, which had several nasty statements addressed at Boeing.

“As this investigation comes to a close, we should not forget it represents the loss of Mr. Barnett’s life,” police stated. “We extend our deepest sympathies to his family during this difficult time and hope they continue to find the strength to persevere in absence.”

Boeing Whistleblower Died By Suicide, Police Investigation Reveals

Boeing did not immediately respond to requests for comment. In March, the firm expressed its sadness at Barnett’s death.

“Our thoughts are with his family and friends,” the business stated.

Barnett, a former quality manager who had worked at Boeing for decades, told the New York Times in 2019 that he had uncovered dangerous wiring clusters in Boeing’s manufacturing procedures that could have resulted in an aircraft’s catastrophic failure if severed by surrounding metal slivers.

“As a quality manager at Boeing, you’re the last line of defense before a defect makes it out to the flying public,” Barnett told the New York Times. “And I haven’t seen a plane out of Charleston yet that I’d put my name on saying it’s safe and airworthy.”

In a message issued to the facility’s employees and sent to CNN at the time, Brad Zaback, a site leader at the plant and general manager of the 787 program, stated that the Times’ coverage “paints a skewed and inaccurate picture of the program and of our team (at the plant).”

Boeing Whistleblower Died By Suicide, Police Investigation Reveals

Zaback, who said the Times denied an invitation to tour the company, stated that “quality is the bedrock of who we are” and that the plant produces “the highest-quality airplanes.”

Since Barnett’s original public warnings about Boeing, the corporation has had multiple high-profile safety and quality issues, including the explosion of a door stopper on a 737 Max shortly after takeoff last January. This prompted the US Justice Department to announce that Boeing could face criminal charges for its history of safety issues.

SOURCE – (AP)

For the nation’s bicycle stores, the last several years have certainly felt like the business version of the Tour de France, with innumerable twists and turns testing their stamina.

Early in the pandemic, a surge in interest in cycling drove sales up 64% to $5.4 billion in 2020, according to Circana, the retail tracking firm. It wasn’t uncommon for some stores to sell 100 or more bikes in a few days.

The boom did not last. Due to pandemic-related supply chain challenges, the retailers sold out of bikes and struggled to replenish. Inventory has caught up, but fewer people require new bicycles. Bicycle manufacturers have started lowering prices to clear off excess inventory. It all adds up to a challenging climate for retailers, with a few bright areas such as dirt and e-bikes.

“The industry had a hard time keeping up with demand for a couple of years, but then demand slowed as the lockdowns ended, and a lot of inventory started showing up,” said Stephen Frothingham, editor-in-chief of Bicycle Retailer & Industry News. “So now for the last, a year and a half, the industry has struggled with having too much inventory, at the supplier level, at the factory level, at the distributor level, at the retail level.”

Circana reports that bike sales will reach $4.1 billion in 2023, up 23% from 2019 but down 24% from 2020. The recovery from the epidemic has been uneven, with large businesses such as REI and Scheels recovering faster than independent bike shops, according to Matt Tucker, director of client development for Circana’s sports equipment business.

Bike Shops Boomed Early In The Pandemic. It’s Been A Bumpy Ride For Most Ever Since

John McDonell, owner of Market Street Cycles on San Francisco’s famed Market Street, says the pandemic’s shift to hybrid labor has been especially difficult for business. During the summer, 3,000 bikes would pass by his shop each day. With fewer individuals commuting to work, that number has dropped to less than 1,000.

According to Pacer.ai, which tracks people’s activities based on smartphone usage, San Francisco falls behind all other major cities regarding workers returning to work, with office visits down 49% from April 2019.

“Our downtown is still a wasteland,” McDonell explained.

Independent bike stores now compete not only with national chains but also with bike manufacturers such as Specialized and Trek. These companies have been buying bike shops and selling their bikes directly to customers, thus eliminating the middleman. According to Frothingham, there are now over 1,000 bike shops in the country that are either owned by Trek or Specialized.

“They’ve got the money to absorb the fact that bike stores, you know, are not a super profitable thing, and in the process, they’ve also been able to cut us out of it,” McDonell stated.

McDonell has been obliged to use a skeleton team of himself and another employee, down from five earlier. His desire to sell his shop to a younger bike enthusiast when he retires is diminishing. He might close his store when his lease expires in a few years.

Bike Shops Boomed Early In The Pandemic. It’s Been A Bumpy Ride For Most Ever Since

“Now I am just trying to land it with both engines on fire and trying not to lose money on my way out,” he stated

Douglas Emerson’s bike business, University Bicycles, in Boulder, Colorado, is doing better, thanks to its placement in one of the country’s most popular biking destinations. He’s owned the shop for 39 years and employs 30 people.

University Bicycles, like other bike retailers, experienced a surge in bike sales due to the pandemic. Emerson recalls selling 107 bicycles in 48 hours. However, immediately following the boom, sales fell considerably due to a lack of inventory, and rentals declined because no one was traveling.

“It became a struggle right after the boom,” Emerson explained. “Since then, manufacturers have overproduced.” In addition, they have significantly reduced prices, which benefits consumers. However, tiny retailers generally cannot take advantage of those discounts.”

Emerson claims the shop hit a “saturation point” when everyone who wanted a bike purchased one. He now sells these consumer items such as jackets, helmets, and locks. His store has returned to its 2019 sales figures.

University Bicycles has also benefited from some of the changes in purchasing trends. The continued strong demand for e-bikes and the increased need for children’s bikes have contributed. Gravel bikes, which can be ridden on both paved and dirt routes, are displacing road cycles as a top seller.

John Ruger, a 50-year biker and faithful University Bicycles client, hasn’t purchased a bike in ten years but intends to buy a gravel bike at present costs. He says a top gravel bike he’s interested in, which would normally cost $12,000 to $14,000, is presently on sale for $8,000.

Bike Shops Boomed Early In The Pandemic. It’s Been A Bumpy Ride For Most Ever Since

“The timing is good,” he remarked. “I can get a bike now because they’re less expensive and my bikes are getting old.”

Shawna Williams, the owner of Free Range Cycles in Seattle, Washington, did not see the same sales boom as others because her 700-square-foot business was so small that she only accepted customers by appointment from March 2020 to May 2021.

However, Williams did have to deal with the coming shortages. She spent a great deal of time “checking in with other shops to see if we could buy something, even at retail, from them, just in order to get a repair done or a build done.”

She expanded her service offerings, such as repairs and maintenance, to compensate for decreasing bike sales. Despite the epidemic, the maneuvering allowed her to maintain consistent overall sales.

“Bike sales, the way that I have kind of framed the shop, are an awesome bonus, but we really need to be sustaining the shop through repair and, like, thoughtful accessory sales,” Williams stated. “A bike sale to me, if we do things well, that means creating a customer for life.”

SOURCE – (AP)