MyFitnessPal, a fitness and nutrition app and website, has more than 200 million users and will become a standalone company under Francisco, a global investment firm that partners with technology firms. That year, it also paid $85 million for fitness app Endomondo, based in Copenhagen, Denmark. Under Armour acquired San Francisco-based MyFitnessPal for $475 million in 2015, part of a series of purchases of digital fitness apps it hoped would boost its social media presence and help sell workout gear and shoes. Under Armour “has largely missed out on athleisure trend, which we see as the most resilient fashion categories amid Covid-19.”Īnd, she said, by selling MyFitnessPal, Under Armour could lose some deeper connections with its target customer.
“We believe growth narrative is broken,” and the company will fail to meet growth targets, Yanushevsky said in a report Friday. Under Armour will need stabilization from retailers, normal levels of inventory and “tangible evidence of consumer appetite for new styles,” Duffy said. Duffy said he was encouraged by the planned sale of MyFitnessPal and discontinuation of Endomondo.īut “the turnaround thesis is challenged by the current environment,” leading to a likely loss this year for Under Armour, while he said “channel partner bankruptcy risk could further delay a return to profitable growth.” and eCommerce” despite weak store traffic, and that sufficient levels of inventory helped meet demand. He noted in a report that results “well exceeded subdued expectations led by footwear. Stifel analyst Jim Duffy kept a hold on the stock Friday.
but globally, Frisk said.įootwear was another bright spot, with sales gains of 19%, to $299 million, even as apparel sales fell 6%, to $927 million.Īnalysts had mixed reactions to the quarter and news of the app sale, and shares of Under Armour closed up just 0.4% at $13.84 each. Much of the improvement was the result of strong online sales, not just in the U.S. But demand strengthened during the third quarter, the company said.
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