[Update as of Aug. 9, 2024] The day after Under Armour announced a brand leadership change, it shared results from its Q1 2025, which ended June 30, 2024. As a result of a 10% drop in revenue for the quarter, the brand has updated its fiscal outlook for 2025. This story has been updated to included detailed results from the earnings call.
– Original story from Aug. 7, 2024 begins –
After a little more than a year in his role as EVP and Chief Consumer Officer, Jim Dausch has stepped down from his post at Under Armour, according to an SEC filing from the company. Although the Chief Consumer Officer role will not be filled, longtime Adidas executive Eric Liedtke will join the company as EVP of Brand Strategy, filling the brand leadership gap.
Dausch joined Under Armour in July 2023, hired by the brand’s former CEO Stephanie Linnartz to support the brand’s “Protect this House 3” strategy for driving U.S. sales. Reporting directly to Linnartz, Dausch led global brand, marketing, digital engagement and customer experience across all commerce channels. Before joining Under Armour, he spent more than 20 years in various roles at Marriott.
When Dausch leaves the company on Aug. 30, 2024, Liedtke will take over the brand post and report directly to President and CEO Kevin Plank, who returned to Under Armour in April 2024. The appointment comes with Under Armour’s acquisition of Unless Collective, a zero-plastic regenerative fashion brand that Liedtke co-founded in 2020. Financial terms were not disclosed, but the deal is expected to close this week.
“We are thrilled to welcome Eric and the Unless team to Under Armour,” Plank said in a statement. “With Eric’s best-in-class history of driving exceptional growth in the branded sports industry and an established reputation as an exceptional leader, his experience will be a tremendous asset in galvanizing Under Armour’s brand strategy, refining our operating model, and ensuring that every facet of consumer engagement is moving our brand forward.”
Before starting and leading Unless as CEO, Liedtke spent more than 26 years at Adidas, taking various senior positions in footwear marketing and executive roles as VP of Brand Marketing, SVP of Sports Performance Brand Marketing and Head of Sports Performance, and most recently Brand President and Executive Board Member. In his most recent role, Liedtke was credited with orchestrating the creation and implementation of a five-year plan that drove more than $8 billion in revenue growth for Adidas, promising results for Under Armour, which has unveiled extensive plans to tackle business declines.
“Sports, inspiration and culture bring people together, and I am honored by the opportunity to contribute to Under Armour’s long legacy as an iconic brand that connects across these dimensions,” said Liedtke in a statement. “I see tremendous opportunity to elevate the brand, enable deeper loyalty, and drive growth among new and existing consumers.”
Righting the Under Armour Ship
Plank has played a central role in the growth and evolution of the Under Armour brand and its products since he founded the company in 1996. From 1996 to 2019, he was acting CEO and Chair of the Board of Directors, and in 2020 he was appointed Executive Chair and Brand Chief. Now, he’s working to turn the Under Armour brand around after a tumultuous year.
Advertisement
In Under Armour’s Q4 2024 results, which ended Mach 31, 2024, the brand reported a 10% decrease in North American revenue to $772 million, while international revenue increased 7% to $561 million. Wholesale revenue also decreased 7% to $850 million, while direct-to-consumer (DTC) revenue was flat year over year. And although owned and operated store revenue increased 7%, ecommerce revenue decreased 8%. For the entire fiscal year, Under Armour also reported a revenue drop of 3%, with North America revenue and wholesale revenue suffering the most, with a loss of 8% and 7% respectively.
Q1 2025 results were equally dismal, with overall revenue down 10% and drops across:
- North America revenue (14% decrease) and international revenue (2% decrease);
- Wholesale revenue (8% decrease) and DTC revenue (12% decrease);
- Apparel revenue (8% decrease) and footwear (15%).
As a result, Under Armour has updated its fiscal 2025 outlook and is expecting revenue to be down at a low double-digit percentage rate. However, due to reduced promotions and discounting activities, the brand expects gross margin to go up 75 to 100 basis points.
“We are encouraged by early progress in our efforts to reconstitute a premium positioning for the Under Armour brand and pleased with our first quarter fiscal 2025 results that were ahead of expectations,” said Plank in a statement. “Our renewed energy and alignment are proving to be critical enablers as we work to deliver superior products and storytelling while driving efficiencies, reducing promotional activity, and complexity.”
