Under Armour wants its talent to stick around.
The sportswear company is opening its wallet with a 50% raise, increasing its $10 minimum wage to $15 in an effort to retain employees.
The increased pay rate should also be a selling point for the 3,000 open positions listed on the company’s website. Starting next month, 90% of Under Armour’s store and warehouse staff — about 8,000 employees — will see the uptick on their paychecks.
“We needed to make a strategic decision on our hourly wages to be a competitive employer in the retail space,” said Stephanie Pugliese, president of the Americas at Under Armour.
Retail job openings were up 53% to 878,000 in March compared to the same period last year, according to the Bureau of Labor Statistics.
- Amazon said last week that it’s hiring 75,000 workers starting at $17 an hour.
- McDonald’s is increasing pay for 35,000 employees by 10%.
Like many retailers with a heavy brick-and-mortar presence, Under Armour struggled in 2020, losing $590 million in the first quarter alone.
The company also terminated a 15-year, $280 million licensing deal with UCLA and a 10-year, $50 million deal with the University of Cincinnati. It declined to renew its on-field sponsorship deal with the NFL as well, estimated to be worth $10 million to $15 million per year.
But the company’s prospects look promising again, and the minimum wage hike isn’t the only sign of restored life.
Under Armour’s Q1 2021 sales rose 35% year-over-year, giving them $1.26 billion in revenue for the quarter. Online sales alone were up 69%.