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They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases. The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. Efforts to build brand image, expand the direct-to-consumer business, manage inventory and contain costs should benefit the company in the long run.īreakout Biotech Stocks with Triple-Digit Profit Potential

The company plans to continue pulling back on promotions and discounts to drive premium brand positioning. Impressively, the company registered sturdy e-commerce growth globally, with sales up more than 50%. During the third quarter of 2020, direct-to-consumer revenues grew 17% to $540 million due to strength in e-commerce. Meanwhile, Under Armour has been trying to boost its direct-to-consumer business through store expansion initiatives and enhancement of its e-commerce platform. In fact, Under Armour highlighted that the MapMyFitness platform is an important part of its digital strategy, and so is its connected footwear business. This will leave the segment with the MapMyFitness platform, including MapMyRun and MapMyRide. Management had also declared plans to discontinue the Endomondo platform's operations by the end of 2020. The segment also houses the MapMyFitness and Endomondo platforms. The platform used to report under Under Armour's Connected Fitness segment.

We note that MyFitnessPal supports nearly 200 million users in their health and fitness journey. Under Armour remains keen on actively optimizing its business and prioritizing assets so that it can effectively focus on its target consumer - the Focused Performer.

This also provides the company investment flexibility to achieve higher returns and boost shareholders’ value in the long run. Management had earlier cited that the divestiture announcement helps the company lower the complexity of the consumer's brand journey and focus on long-term digital strategy. The transaction value is inclusive of the achievement of potential earn-out payments, while the deal’s debt financing was provided by MidCap Financial. In October 2020, it had agreed to sell the MyFitnessPal platform at $345 million. Recently, it completed the divestiture of its MyFitnessPal platform to Francisco Partners. The company remains focused on strengthening its brand through enhanced customer connections, effective innovation and strict go-to-market process. UAA is progressing well with its transformation plan.