Under Armour is looking to sell the MyFitnessPal app. The apparel company bought the app for approximately $475 million in 2015 as it looked to continue building out a suite of fitness apps and platforms that included MapMyFitness and Endomondo.
That app ecosystem was supposed to provide UA ‘unparalleled data and insight’ into athletes while forming deeper relationships with customers. While the company saw an 8.9% uptick in revenue in the first quarter this fiscal year from its connected fitness business, UA’s overall revenue dropped 23%. The $136 million in revenue for the connected fitness category in 2019 was less than 3% of its total sales.
The potential sale of MyFitnessPal is UA’s latest move to shed assets and liabilities as sales continue to tumble. Last month, the company started looking to get out of deals with colleges, including its 15-year, $280 million contract with UCLA.
Under Armour’s struggles come as Nike’s shares have jumped 10% the past three months and Lululemon purchased at-home fitness startup Mirror for $500 million last week. Analysts once projected UA as in the same realm as Nike and Adidas, but after losing out on apparel trends like athleisure, there is now a large gap between the company and its rivals.