Under Armour Announces Strategic Changes In Its Digital Business | Will Top Down Improve UA?

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Under Armour has announced adjustments to its Digital division.

Paul Fipps, Chief Technology Officer said, “As part of the restructuring we initiated this summer that integrates technology across our core business—connected fitness digital product, digital engineering and digital media— will now all report directly to me. This integration significantly enhances our ability to engage consumers with elevated experiences, premium products and personalized services.”

The company added Michael LaGuardia as SVP of Digital Product. This comes at a time where the founders of one of UA’s Connected Fitness acquisitions has stepped down. The adjustments appear to be a move that feels like a Lean Management shift that will streamline the chain of command. Under Armour is a young company and during the growth process it is natural to hire too many people for jobs and as companies hit obstacles the natural progression is layoffs and ‘slimming’ down top level jobs to offset expenses.

With Under Armour however these adjustments are unsettling for the market and affects the brand short term although the adjustments are long term strategies. I’ve witnessed the marketing adjustments taking place with UA, but the brand still has glaring holes in its marketing strategy which is more pressing since that has a direct effect on sales.

UA has also named David Bergman as the permanent Chief Financial Officer in a separate report.

These top level moves appear as the foundation for correcting the growth and movement of UA. The 5 billion dollar a year company has a case of “writer’s block” in that there isn’t expected to be any significant growth in the next year. I remain bullish on Under Armour (I’m not an analyst). I see the brands fixes as primarily a matter of education, marketing and streamlining product offerings.