Under Armour is changing its inventory strategy according to a statement made by CEO and President Patrik Frisks on a previous earnings call.
During the earnings call, Frisks indicated that the new inventory strategy would restrict product supply even though demand is high. The new strategic direction will prioritize placing key products in predetermined locations instead of chasing demand, which may require the company to spread itself thin to meet higher levels of demand.
Under the new strategy, inventory went down by 9% in the first quarter of this fiscal year and margins on products were higher than previous quarters. Also noted on the earnings call was that Under Armours e-commerce business increased by 69% year over year.
Image Credit: Under Armour