• Loading stock data...
Monday, June 30, 2025

Under Armour To Deploy New Ad Campaign Touting Athletes in 2020

  • Under Armour is attempting to become more of a premium brand, while still catering to its core athlete consumer base.
  • The company’s increase in advertising dollars is a direct result of better than anticipated margins achieved in the third quarter.
Juan Soto Under Armour
Photo Credit: Thomas B. Shea-USA TODAY Sports

Under Armour has announced a new marketing push heading into 2020 that will showcase its roster full of prominent athletes, and attempt to grow brand appeal with consumers. 

The shift in strategy comes in the midst of an SEC investigation into the company’s accounting practices, and another quarter of revenue declines.

On its 2019 third-quarter earnings call on November 4, Under Armour said newly allocated advertising dollars are a direct byproduct of better than anticipated margins achieved during the period. A slew of new merchandise sold to customers by the company and its wholesale partners at varying price points lowered inventory available for discount retailers, thereby maximizing sales profits, it said. 

“We are taking this opportunity to proactively invest back into the brand through increased marketing spend in a deliberate shift from defense to offense,” CEO Kevin Plank told investors. He also touted potential marketing opportunities with New England Patriots Quarterback Tom Brady and Washington Nationals star Juan Soto as part of the strategy. 

Under Armour announced on October 22 that Plank will be transitioning to his new role as executive chairman and brand chief beginning in January, making room for Patrick Frisk, current President and COO, to lead day-to-day facets of the company.

Since 2017, Under Armour has built up data analytics capabilities to better compete with market rivals Nike and Adidas and leverage its digital and social media channels to grow market share. The company is now ready to unleash developed tools in a type of “top-funnel storytelling” approach it has not executed in several years, according to Plank.

“You are going to hear about this brand, and you are going to hear us tell our story. That’s for sure,” he said.

Both Plank and Frisk will attempt to transition Under Armour into a more premium brand going forward, while catering to the same active core customer. A large part of that strategy is fixated on new product development. The company hinted that an abundance of midsole running shoes are in the pipeline, similar to its Infinite HOVR running shoe released in February currently priced at $120.

“What’s interesting about our transformation is this evolution in how we think about creating a product for a specific consumer mindset that’s really allowed us as an organization to become incredibly consumer-centric,” said Frisk. “It’s not the company wasn’t consumer-centric before, it’s just that we are now able to use data much more purposefully to understand what matters to the consumer.”

READ MORE: Biofreeze Using Sports Marketing To Follow Same Path As Gatorade

Overall, Under Armour reported a 1% decline in revenue to $1.4 billion in the third quarter ending September 30, due largely to a 4% decline in its North America business. International growth of 5% -– fueled by a strong collective performance in Europe, the Middle East, and Africa -– helped to offset some of the losses. North America represents Under Armour’s largest consumer market by a wide margin. 

The sports apparel and footwear maker additionally expects both lower excess inventory for off-price partners and challenges in converting higher store traffic into higher direct-to-consumer sales to plague total revenue outputs in 2019. Direct-to-consumer sales by Under Armour declined 1% in the quarter to $463 million, representing roughly one-third of total revenue.

Projected Under Armour revenue for the year is now expected to grow 2%, compared to 3% to 4% forecasts estimated earlier this year. 

READ MORE: Borussia Dortmund Sees U.S. Growth Ahead, Even Without Pulisic

Addressing the SEC’s investigation into the company’s accounting practices made public by the Wall Street Journal on Sunday, Chief Financial Officer David Bergman said that Under Armour has been supplying the regulator with financial documents since the summer of 2017. 

“We have been fully cooperating with these inquiries for nearly two-and-a-half years,” said Bergman. “We firmly believe that our accounting practices and disclosures were appropriate.”

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

Cohen’s $331M Mets Spiral Into June Swoon Despite Soto Surge

Frustrations rise as the high-spending Mets have lost 13 of 16 games.
From vintage to unique collaborations, various Nike and Jordan shoes are displayed on a wall at Saved Soles inside West Ridge Mall.

Nike Stumbles Less Than Expected, Giving Wall Street Hope

The sports apparel and footwear giant beats Wall Street expectations.
Faith Kipyegon

Nike’s Sub-4:00 Stunt Falls Short With Fastest Women’s Mile Ever

Male pacers and cutting-edge tech helped Kipyegon shave off one second.
Jun 20, 2024; Eugene, OR, USA; Detailed view of Nike Alphafly 3 racing flat at the Nike by Eugene store.

Investors Hunt for Signs Nike Has Regained Its Footing

Nike’s fundamentals are “still challenged.”

Featured Today

The Battle Over Wimbledon’s Ambitious Expansion Plan

A classic NIMBY standoff on one of the most hallowed grounds in sports.
Seattle Rough & Tumble
June 28, 2025

Women’s Sports Bars Are on the Rise. Survival Isn’t Guaranteed

Some women’s sports bars are cashing in. Others are clawing for funding.
June 27, 2025

Shitposters Have Taken the Reins of Pro Sports’ Official Voices

Meet the social media pros turning sports teams into internet trolls.
Jun 17, 2025; Sunrise, Florida, USA; Florida Panthers center Sam Reinhart (13) hoists the Stanley Cup after winning game six of the 2025 Stanley Cup Final against the Edmonton Oilers at Amerant Bank Arena
June 26, 2025

Stanley Cup’s International Summer Tour: Rules, Repairs, and Raucousness

No pro trophy tour compares to the NHL’s three-month global victory lap.

How Rolex Paved the Way for Luxury’s Love Affair With Tennis

“It’s almost impossible to think about tennis without thinking about Rolex.”
Athlos
May 4, 2025

Nike Wants to Pull Off the First Women’s Sub-4:00 Mile

Experts speak on whether Nike’s “moonshot” is realistic or a gimmick.
Jul 19, 2024; Phoenix, Ariz., United States; Sheryl Swoopes hosts a WBNA All-Star brunch in honor of her former teammate, Nikki McCray Penson, at Thea in Phoenix on July 19, 2024
May 12, 2025

Sheryl Swoopes: A’ja Wilson Shoe Campaign Shows Nike Sea Change

Nike released the Air Swoopes in 1995.
Sponsored

Hottest Matchups Following NFL Schedule Release

The NFL released the 2025 regular-season schedule, and anticipation is already building in the ticket marketplace with four months to go.
Apr 12, 2025; Cleveland, Ohio, USA; MLB umpire Ron Kulpa (46) calls a third strike during a game between the Cleveland Guardians and the Kansas City Royals at Progressive Field
May 4, 2025

Pro Refs Get Offered Free Lasik for Better Calls. Some Took It

Some pro officials have sprung for the offer for free corrective surgery.
January 15, 2025

State Farm Cancels Planned Super Bowl Ad Amid California Fires Controversy

State Farm’s Super Bowl ad last year featured Arnold Schwarzenegger and Danny DeVito.
Nov 25, 2024; Inglewood, California, USA; From left: Scott Van Pelt, Ryan Clark, Jason Kelce and Marcus Spears on the ESPN Monday Night Football Countdown set before the game between the Baltimore Ravens and the Los Angeles Chargers at SoFi Stadium.
December 17, 2024

A ‘Wave’ of Sports Content Is Coming to TikTok

The next generation is consuming sports in a different way.
Apr 7, 2022; Augusta, Georgia, USA; Rory McIlroy (left) and Brooks Koepka set up to putt on no. 9 during the first round of The Masters golf tournament.
November 27, 2024

PGA Tour vs. LIV Golf TV ‘Showdown’ Will Pay Out $10M Crypto..

Two golfers from each tour will face off in Las Vegas.