Under Armour, Inc. expects a steeper annual revenue decline due to weakening demand in its primary North American market [1, 2].
This downturn signals a significant struggle for the brand to maintain its market share as consumers reduce discretionary spending on athletic apparel. The company's ability to pivot its pricing strategy will determine if it can stabilize its financial position during a period of economic uncertainty [1, 2].
Recent data shows the company experienced a 40% drop in sales [3]. Because of this slump, Under Armour now forecasts an annual revenue decline of five% to seven% for the 2025 fiscal year [1].
Company leadership is responding by shifting the business model away from heavy discounting. The brand is now prioritizing the sale of full-price merchandise to protect its margins, even if the strategy results in lower overall volume [3].
"The mandate for the sports brand is selling more full‑price items, even if that means moving fewer products," CEO Kevin Plank said [3].
The decline is largely attributed to economic conditions in North America. Cautious consumer behavior has pressured sales growth across the region, the brand's most critical geographic segment [1, 2].
Under Armour is focusing on quality and brand positioning to navigate these challenges. By reducing reliance on sales and promotions, the company aims to restore its premium status in the athletic wear market [3].
“Under Armour now forecasts an annual revenue decline of five% to seven% for the 2025 fiscal year.”
Under Armour is attempting a high-risk transition from a volume-based sales model to a margin-focused one. By refusing to discount products to attract cautious consumers, the company is betting that brand prestige and quality will outweigh the immediate need for revenue growth. If consumers continue to pull back on discretionary spending, this strategy could lead to further declines in market share against competitors who may be more aggressive with pricing.
