Under Armour boosts marketing against continued athleisure demand | WARC | The Feed
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Under Armour boosts marketing against continued athleisure demand
The office may be back in some places, but sportswear buyers at American sports equipment company Under Armour are undeterred in their quest for comfort as hybrid work becomes the norm; latest financials show marketing boost to capitalise on this important category.
Why it matters
The future of the office, and therefore of cities’ central business districts, hinges on the adoption of home working. Certain vitals point to an appetite among workers to mix home and the office – and sometimes leaving their jobs if they are denied such flexibility. Under Armour is now telling investors it is expecting sales to rise 25% versus 2020, the year of home working. Marketers must be mindful of the signals of this continuing trend.
Takeaways
- Revenues are up 8% versus Q3 2020, with profits up sharply from $38.9m for the quarter last year to $113.4m this year.
- A complicated picture: while online sales are down slightly (4%) year-on-year, direct-to-consumer sales have increased 12%.
- This isn’t just consumer driven. As CNBC reports, it has followed a campaign to strengthen the brand by putting more marketing muscle behind product launches and cutting discounted channels to protect profit.
- International (non-US) sales have been the key drivers of growth, up 18% across the board.
- Analysts now believe the boom in athletic wear is likely to continue into 2022, Reuters reports.
Sourced from CNBC, Reuters
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