of under armor According to President and CEO Kevin Plank, the brand needs to be re-centered. As a result, the company is launching a “Protect This House” restructuring plan.
The company aims to increase demand for its products and Loyaltyoptimize and modernize operations, and improve the consumer experience.
In a recent call with investors, Plank said the company will continue to improve its time-to-market schedule over the next 18 months with a smaller, more focused product portfolio and new processes to introduce efficiencies across the business. He said he would make changes to speed things up.
“Our current go-to-market has only one gear with an 18-month process from idea to product to the sales floor. This is just not competitive in the 2024 landscape.” Plank said. “That being said, we continue to pursue faster six-month and 12-month time-to-market capabilities.”
focus on marketing
The company is placing a greater emphasis on marketing operationally, restarting its search for a new chief marketing officer, and merging its global and North American marketing teams for a more integrated approach, resulting in faster decision-making and spending. monitoring is being strengthened. ROI.
Under Armor is also cutting back on external resources it deems unnecessary, reducing the number of agencies, consultants and outside experts, particularly across marketing departments.
A streamlined portfolio
As part of these efforts, Under Armor is reducing SKUs or style counties by approximately 25% and reducing discounts to expand its superior offerings and balance its segmentation.
“This will greatly reduce the workload for our team, allowing them to focus and prioritize making sure that every product that comes out of our engine is great, with a product and story that we can be proud of. “We'll be able to do that,” Plank said.
The company also plans to build a direct-to-consumer line exclusively for its stores and e-commerce site.
Other e-commerce changes
- Promotion days across the site are down more than 50% compared to last year
- Reduced discount depth
- Improving online merchandising in a more engaging brand-building environment
- Discounts on outlet products on the website
To support the new go-to-market schedule, the company will: Improve your supply chain End-to-end planning capabilities.
Under the new organization, product, marketing and sales will work together to develop unique go-to-market strategies that drive technology and design, Plank said. He expects the changes to provide greater visibility into category and product performance and increase agility across the company.
“These efforts, along with aggressive moves such as reduced discounts and promotions and SKU reductions, give us great confidence in our ability to improve ASP and gross margin over the next few years.” Plank said.
