By: The Gist
CEO Stephanie Linnartz said Tuesday that womenswear and footwear will star in the company’s growth strategy, declaring that it “will go after women harder than this company has ever seen.”
Picture Source: PATRICK T. FALLON/AFP VIA GETTY IMAGES
The GIST: Under Armour’s (UA) new chief doesn’t want to leave money on the table. CEO Stephanie Linnartz said Tuesday that womenswear and footwear will star in the company’s growth strategy, declaring that it “will go after women harder than this company has ever seen.”
The details: Linnartz said footwear is essential to growing UA’s womenswear business. It will kick off efforts by remarketing existing products but will eventually launch new shoes with the help of sneaker and branding experts. The strategy aligns with UA’s refreshed focus on Sportstyle, its athleisure division.
The context: The company’s revenue rose 8% to $1.4B in Q4, but UA hasn’t maximized its footwear or womenswear businesses. Shoes comprise 25% of UA’s annual revenue and women’s products account for even less, so both industries are the definition of untapped potential.
- The global footwear industry is expected to generate almost $400B in revenue this year, up 3.5% YoY, while the women’s athleticwear market will approach $200B globally in 2023. Sheesh.
Zooming out: A rejuvenated marketing effort and the promise of new products also opens the door for UA to incorporate female athletes into its brand identity. If the company decides to grow its women’s sports endorsements, basketball should be its first play — hoopers lead the pack for sartorial currency, especially for footwear.
- Aliyah Boston may not be on UA’s books anymore, but the brand can tap WNBA champ Kelsey Plum after the parties struck an agreement last November and try to recruit popular talent in the pros and college. Watch this space.