Under Armour's two-year sales decline has reportedly caused CEO Kevin Plank's net worth to decrease by $2.5 billion, including $150 million just today after the company slashed its revenue and earning forecast, according to a report by Bloomberg.
The report goes on to further explain that since Under Armour's stock peaked at $54.70 in Sept. 2015, the company has experienced a 75% decline with a 44% decline this year alone as of its closing market share price on Oct. 30. Sales have been less than projected for the third quarter, falling nearly 5% from the previous year.
Despite an increase in sales overseas, North American business has steadily dropped. Specifically, the company has seen declined sales numbers in women's training apparel, outdoor outfits, and basketball sneakers. Even with high-profile athletes on their roster like Stephen Curry, Cam Newton, and Bryce Harper, name recognition does not seem to directly translate to success in the signature footwear market.
Plank has cited store closings, competitors, and a shift in consumer's desires as potential factors for the decline. This past August, the company announced 2% of its work force would be cut in an attempt to restructure. To make matters worse, the company has reported supply chain issues related to Curry's fourth signature model, the Curry 4, and confirmed it will have to delay certain products until the fourth quarter. Under Armour's sputtering has not only occurred in its sales numbers. The company also took some heat earlier this year when Plank said President Donald Trump would be a "real asset" to the country in an interview on CNBC's Halftime Report, a statement that angered customers and even the brand's top endorser in Curry.
Although Under Armour seemed to be making a play to prove itself as a top-tier player in the footwear market, this continued struggle in the market could mean more serious changes will be in store heading into 2018.