The $345 million sale of MyFitnessPal represents the slimming of Under Armour’s operations and its narrowed focus on being “a performance brand.” CEO Patrik Frisk said the apparel company still has plenty of growth potential after it reported better than expected earnings last week.
Under Armour will concentrate on digital growth as it cuts distribution to 2,000–3,000 wholesale stores. Global e-commerce sales grew 50% year-over-year in the quarter.
Connected fitness — which generated $37 million in revenue in the quarter — will remain a core element for Under Armour with the MapMyFitness app. Unlike MyFitnessPal, Under Armour believes the data collected in MapMyFitness better aligns with its target “performance” consumer.
Under Armour Q3 by the Numbers:
$1.43 billion in revenue, flat year-over-year
$927 million in apparel sales, down 6%
$299 million in footwear revenue, up 19%
$145 million in accessories revenue, up 23%
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