Under Armour Earnings: Plank Announces Restructuring and Bold Plans in Return; Shares Undervalued

No-moat Under Armour’s performance in its (March-ended) fiscal 2024 fourth quarter met expectations, but the focus was almost entirely on how Kevin Plank, reinstated as CEO in March, plans to fix the business. On the earnings call, Plank acknowledged years of missteps under prior executives and highlighted a renewed focus on core men’s performance apparel, faster product development, full-price selling, and North America operations. He also announced another restructuring plan that will include layoffs and other cost cuts. While it makes sense that Plank wants to double down on Under Armour’s strengths, and the sportswear market is large enough to support many producers, success is far from certain. Rising brands like On and Hoka have made the market more competitive than ever.