Within the 2010s, there was one tiny American model doing what nobody else had been capable of do for many years in sportswear. It had grown gross sales in North America at double digits yearly for 13 years, taken market share from Nike, and leapfrogged Adidas as the brand new quantity #2 athletic model in the USA. It was an upstart with a passionate fanbase, competed on high quality over worth, and backed by a number of the most celebrated athletes on the planet. This was Below Armour.
Within the eyes of the media and traders, the fast-growing Below Armour was the closest to a Nike slayer that the business had ever seen – and that giant potential was rapidly priced into the inventory. But quick ahead to the current – only a few years after the hype and my very own experiences, Below Armor is a shadow of its former self and is value solely a bit greater than a penny inventory.
Declining gross sales, government turnover, failed pivots, expensed journeys to strip golf equipment, and federal investigations into dodgy accounting have plagued the corporate 12 months after 12 months. Below Armor today lags behind not simply Nike and Adidas, but additionally New Steadiness, Puma, and Lululemon. Even the collaboration with Steph Curry, as soon as a rival Nike’s billion-dollar Jordan product line, has fallen quick. Whereas Air Pressure Ones, Yeezys, UltraBoosts, Air Maxes, Blazers, Converse, 574s, and Jordans dominate footwear, Below Armor has remained non-existent on the sector and on the road.
How may such a a promising model with athletes like Steph Curry and Tom Brady collapse in such a short while? On this episode, we’ll cowl the 4 eras of Below Armor and the way their fast downfall is a timeless case research on governance, tech, and the unstated risks of founder-led corporations.
0:00 Earn Your Armor
14:17 The Nike Slayer Period
26:50 The Icarus Period
30:29 The Band-Assist Period
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