According to CNBC, Under Armour is in a restructuring phase. It will be laying off 280 employees due to slow sales and a record low share price. Investors expected Under Armour to reach high growth levels but due to stiff competition and a crowded marketplace, Under Armour only grew a modest nine per cent, causing investors to sell shares and Under Armour’s shares to fall six per cent.
Hypebeast’s analysis on the subject highlights the point that Under Armour’s most important streams of revenue come from its partnership with NBA champion Steph Curry. The problem is that sales of Steph Curry’s shoes are also down.
While laying off 280 employees is not the end of the world, typically this is the first sign that a brand is struggling with its vision as a company or financially. Both could spell problems for the brand if Under Armour doesn’t rectify the situation.