onference call with investors and analysts on May 16, he said, “This is not where I envisioned Under Armour playing at this point in our journey. That said, we’ll use this turbulence to reconstitute our brand.” How Under Armour plans to move forward “Over the next 18 months, there is a significant opportunity to reconstitute Under Armour’s brand strength through achieving more, by doing less and focusing on our core fundamentals: driving demand through better products and storytelling, running smarter plays like simplifying our operating model and elevating our consumer experience,” Plank stated. “In parallel, we’re focused on cost management and implementing the strategies necessary to grow our brand and improve shareholder value as we move forward.” As part of its stabilization efforts, the company is consolidating and updating its workforce and prioritizing a more defined, updated brand image.   The company’s board of directors has approved a large-scale restructuring plan that is expected to cost between $70 million to $90 million, including employee severance and benefit costs, various transformational initiatives, and facility, software, and other asset-related charges. While reducing staff count, the brand is also searching for a new chief marketing officer to help improve brand storytelling and move away from over-discounting, which according to Plank, the company has come to rely on. By the end of 2024, Under Armour will cut sitewide promotional days on its website by 50 per cent.  The company also announced that its board of directors has authorized the repurchase of up to $500 million of Under Armour’s outstanding Class C common stock. Repurchases under the share buyback program may be made over the next three years through various means, including accelerated share repurchase, open market, or privately negotiated transactions. Can Under Armour make a comeback in North America? GlobalData’s managing director and retail analyst Neil Saunders noted that Under Armour’s “latest weak numbers reflect the tangle that Under Armour has gotten itself into both strategically and in terms of the vision for its brand.” Saunders pointed to a lack of product innovation, especially regarding important categories like sneakers where newer players like On and Hoka have outmaneuvered Under Armour. He also noted that the sportswear brand’s range is very confusing, as it jumps between trying to provide technical solutions and trying to appeal to those wanting fashion fixes. “Wholesale is another ongoing area of weakness, particularly in North America where Under Armour is exposed to some very poor players. A business like Kohl’s, for example, cannot deliver the growth that Under Armour needs because it is suffering from customer erosion and challenges on its own sales line,” Saunders elaborated. With staff restructuring and prioritization on developing new, innovative products, the retail expert believes that Under Armour is headed in the right direction with its strategic planning.  “There are some early signs that management intends to get to grips with the problems of uniquity and a lack of focus. The central idea is to create a more premium positioning for the brand with better storytelling and improved product innovation and quality.” Ultimately, the retail analyst predicted that Under Armour will have its work cut out for itself in the coming year. “The difficulties of the journey should not be underestimated. It will take time to reposition the brand, and successful execution will require some painful decisions that will negatively impact the numbers,” Saunders warned.