Can Under Armour Turn Around Its North American Business?
The main drag on sales is still the North American market, where the company is headquartered and where it's taken a beating over the past few years. In late 2019, the company announced a new CEO, and in early 2020 it rolled out a broad, new marketing strategy. But Under Armour isn't where it wants to be just yet, as improved results are taking longer than anticipated to take root. Analysts have criticized the company for not getting on board with the athleisure trends currently benefitting Nike(NYSE: NKE) and lululemon athletica (NASDAQ: LULU), but Under Armour is taking a firm and principled stance against that. Under Armour is expected to have "a mid- to high single-digit decline in North America and low double-digit growth in our international business," and for the first quarter 2020, it's expecting to see revenue decrease 13% to 15%, partially due to declines in China created by the novel coronavirus outbreak.