Under Armour Navigates Legal Battle, Executive Shift, and Financial Downturn
Aug/12/2024
Under Armour has obtained an extension to contest the "HOOVIL" trademark, which covers apparel items such as gloves, jeans, and jackets, and features a logo bearing a striking resemblance to Under Armour's own emblem. This legal challenge comes amid significant internal changes, as Chief Consumer Officer Jim Dausch prepares to depart at the end of the month, making way for Eric Liedtke, a 26-year Adidas veteran who will steer the brand's strategy. In Founder Kevin Plank's second quarter back at the helm, Under Armour reported a 10% revenue decline to $1.2 billion, alongside a $305 million net loss. The company recorded $25 million in restructuring charges, part of a broader initiative aiming for $70 million to $90 million by fiscal 2025's end. North American sales dropped by 14%, with international revenue dipping 2%. Direct-to-consumer revenue saw a 12% decline, outpacing the 8% drop in wholesale, although full-price DTC sales rose significantly as the brand reduced promotional activities. The visualization below illustrates the logo comparison between the "HOOVIL" trademark and Under Armour's registered "UA" figurative trademark, highlighting the similarities at the center of the dispute.
