What: Previously announced restructuration plan bears fruit

Why it is important: The brand turns to a more DTC-focused model and skips athleisure category

Turnaround is still the word of the day at Under Armour, with CEO Patrik Frisk saying on a fourth quarter conference call that the brand will return to profitability in 2021. The company beat its own expectations, as it works to rebalance its cost structure and move toward stronger growth.

Under Armour is committed to exiting between 2,000 and 3,000 wholesale doors, in 2 to 3 years’ time. This will leave the retailer with closer to 10,000 wholesale doors. With that comes a focus on DTC, which grew 11% in the quarter thanks to a 25% rise in e-commerce.

The shift to profitability also includes the shift to a more DTC-focused model (pursued by rival Nike as well), as Under Armour looks to move toward a more full-price, premium positioning with its consumers.

Under Armour will also focus on performance products in spite of athleisure mega trend. The athleisure question is never one that Under Armour sees itself answering, doubling down instead on its performance-based positioning.

PR: Under Armour Reports Fourth Quarter And Full Year2020 Results

RD: Under Armour plans a returnto profitable growth in 2021