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Under Armour execs optimistic despite stock plunge

During Under Armour's virtual annual shareholders meeting, which came after the company's stock plunged last week, execs "got another chance to defend those results, set expectations for the year and outline ways to grow the brand," according to Jessica Iannetta of the BALTIMORE BUSINESS JOURNAL. Under Armor's stock has "dropped by more than 28% since Friday," when the company reported results for its most recent quarter that "fell below Wall Street expectations." Those results coupled with the company's projections for slower growth of 5-7% for the current fiscal year "led analysts to dramatically slash price targets." But Under Armour CEO Patrik Frisk during the meeting yesterday emphasized that the results of the most recent quarter are "mainly due to temporary factors such as supply chain challenges, Covid-19 restrictions in China and rising inflation." He emphasized that demand for Under Armour products "remains strong." Frisk outlined four main areas he "wants to focus on: direct-to-consumer, women, footwear and international." The company has "ramped up its direct-to-consumer strategy extensively in the last few years, including by increasing its e-commerce efforts and exiting thousands of wholesale locations." Frisk also said the company is "responsibly moving into a stage of store expansion" (BIZJOURNALS.com, 5/11).

MR. BRIGHTSIDE: In Baltimore, Lorraine Mirabella notes Under Armour has "completed a multiyear turnaround plan." Execs said that the changes "restored the brand to a premium status, improved the way it reaches and sells to consumers in stores and online, and focused product design on innovations that will boost performance for athletes from youth to professional levels." Under Armour Founder Kevin Plank vowed to "listen to consumers and grow the brand." Plank: "We will deliver innovation. We will get better, and we will grow our business" (BALTIMORE SUN, 5/12).

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