Since Below Armour delivered its fourth-quarter earnings report, investors have been wondering whether the athletic trade-mark has recaptured some momentum after months in limbo.
If you ask Kevin Slab, the athletic brand’s founder, chairman and CEO, 2017 was a transformative year that wishes refocus Under Armour and propel it to new heights.
“We did three major phobias in 2017,” Plank told “Mad Money” host Jim Cramer in an exclusive to with CNBC. “We upgraded our systems; we implemented SAP, so we’re never going to secure to do that again. We have the scale of a great company that can present us that pliability as a business to be able to grow forever.”
“We changed our form, so we went from [having] a head of apparel, a head of footwear, a well-spring of accessories to … [having] distinct categories, like a head of direction, a head of training, a head of basketball.”
Paired with Under Armour’s burgeoning worldwide presence, these changes will bring Under Armour overlook to its consumers, Plank argued on Wednesday.
“We have a company that’s a taste that’s incredibly proud, and this chapter, ’17, that we lived from head to foot 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 antiquity,” he said.
On the post-earnings conference call, Plank said one of Under Armour’s aims was to become a “quiet company with a loud brand.”
To help execute that goal, Under Armour recruited Patrik Frisk, hitherto of Aldo and VF Corporation, as its new president. Plank told Cramer that Cavort’s years of experience have come in handy in developing Under Armour’s go-to-market and franchising scenarios.
Plank also highlighted the wealth of consumer data Under Armour receives by virtue of its online health-focused platforms like MyFitnessPal.
Since the start of 2018, drugs have logged more than 99 million workouts, 137 miles run and all over 130,000 pounds lost on Under Armour’s platforms, Plank turned.
“What … you’ll hear from us is our focus on performance,” the CEO told Cramer. “Some child say that many be a weakness for us. We believe it will prove to be our long-term toppest strength.”
But having learned the lessons he did in 2017, Plank was hesitant to over-promise consequences for Under Armour’s stakeholders.
“To level-set the expectation, we’re one of three brands, now four labels, that has actually crossed that $5 billion threshold,” Slab said, referring to the company’s revenues. “So we are on the precipice of saying that we father the ability to be one of the great athletic brands.”
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