However, this thesis didn’t pan out as each app targeted slightly different sets of users, some of whom weren’t similar enough to the Under Armour core customers. “Clearly there remains heavy lifting ahead and channel mix matters, but we believe 3Q showed compelling progress,” Siegel wrote.When Under Armour acquired MyFitnessPal, Endomondo and MapMyFitness several years ago, the company hoped that by owning a variety of digital fitness apps, it could get the tens of millions of people who used these apps to subsequently buy their workout gear from Under Armour. Siegel has a Market Perform rating on the stock with a $13 price target. The stock was up 1.1% to $13.94 while the Siegel noted the company’s third-quarter sales were better than Wall Street expected. Peloton shares have soared 290% in 2020, as the pandemic closed gyms and pushed consumers to its at-home equipment and services.īMO Capital Markets analyst Simeon Siegel wrote in a note on Friday that he suggested in July that “turning inward to focus on its core strength would help re-elevate its profit profile.” Launched its own Fitness+ service for $9.99 a month in September, which is comparable to The company bought MapMyFitness in 2013 for $150 million.Ĭonnected fitness has been a hot trend in recent months. The connected fitness segment, which includes MyFitnessPal and MapMyFitness, drove $37 million of the company’s $1.43 billion sales during the third quarter. Under Armour said MapMyFitness will continue to be a “crucial element of Under Armour’s digital strategy, as does its connected footwear business.” The company will continue to operate the separate MapMyFitness platform, which includes MapMyRun and MapMyRide. “As part of our ongoing transformation, we are committed to actively managing our business to ensure that our strategies and assets are prioritized to connect even more deeply with our target consumer – the Focused Performer,” Under Armour CEO Patrik Frisk said in a news release.įrisk said divesting MyFitnessPal reduces complexity for consumers interacting with the Under Armour brand, “by empowering sharper alignment with our long-term digital strategy.” He said it also gives the company more flexibility to invest toward driving long-term returns and value for shareholders
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