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Under Armour CEO Explains Why 2018 Will Be The Most Important Year For The Brand

Under Armour CEO Explains Why 2018 Will Be The Most Important Year For The Brand
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Under Armour Inc (NYSE: UAA)'s stock, down more than 20 percent year-over-year, has seen better days. But the past can remain in the past, and 2018 is set to be the most important "chapter" in the company's 22-year history, said its founding CEO Kevin Plank.

What Happened

Under Armour exited a rough 2017 with several major accomplishments that will set the tone for 2018 and beyond, Plank told CNBC's Jim Cramer in an interview. For example, the company upgraded its system and enacted SAP software, which better positions it to leverage its size for long-term growth, Plank said. 

Under Armour's corporate mangement structure was changed from a head of apparel, a head of footwear and a head of accessories to a structure based on distinct ategories, such as basketball or running, the CEO said. In addition, Under Armour brought in new executives with the necessary experience in go-to-market and franchising strategies, he said. 

"We have a company [with] a culture that's incredibly proud, and this chapter, 2017, that we lived through and what we're doing in '18 will prove to be one of the most important chapters that we've had in our 22-year history." 

Why It's Important

After 2017, Plank said he learned an important lesson that's being applied to the company's goals in 2018 and beyond: don't overpromise to investors. Instead, Plank's 2018 strategy is to become a "quiet company with a loud brand."

What's Next?

Under Armour hopes to solidify its status as one of the world's "great athletic brands." The company has become one of just four brands to cross the $5-billion revenue threshold.

"We have the scale of a great company that can give us that pliability as a business to be able to grow forever," Plank said. 

Related Links:

Under Armour Shares Soaring On International Sales Growth

Under Armour May Soon Have To Decide Which Segments It Can Live Without

Photo by Marco Verch/Wikimedia. 

Posted-In: CNBC Jim Cramer Kevin Plank Mad Money Patrik FriskMedia Interview Best of Benzinga


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