Athletic performance apparel, footwear and accessories brand Under Armour is expanding its efforts to offer not only the products athletes wear while playing sports, but also the ones they need at other times of the day.
Company executives said Thursday (Nov. 3) during the company’s quarterly earnings call that there are product categories such as casual wear that Under Armour has not addressed as extensively as it has done with the performance-oriented products — and this opens up a $300 billion opportunity.
Under Armour Interim President and CEO Colin Browne said during the call that the company currently creates products athletes need while training, competing and recovering.
“If you think about that, it really only probably encompasses 20% or 30% of their day,” Browne said. “So, the opportunity of leaning into the other 70% of their day is clearly a huge opportunity.”
These comments came as Under Armour reported that during the quarter ended Sept. 30, its revenue was up 2% year over year, which was in line with its expectations.
Looking ahead, the company has lowered its outlook for fiscal year 2023 and now expects revenue growth to be in the low-single-digit percentage range rather than the previously announced 5% to 7%. Under Armour attributed this to a more challenging retail environment and changes in foreign currency, according to the release.
To boost that growth in the quarters to come, the company will lean on its strengths of performance product innovation, consumer connection and empowering athletes while also targeting multiple growth opportunities, Browne said in the release.
“From refining our target consumer to young athletes and creating the space necessary to broaden our product aperture — we’re taking action to pivot to the growth we know the Under Armour brand is capable of over the long term,” Browne said in the release.
For all PYMNTS retail coverage, subscribe to the daily Retail Newsletter.