Is Under Armour Looking to Sell MyFitnessPal?
Under Armour acquired MyFitnessPal in February 2015 for $475 million, an integral move in its push to become a digitally-focused company. However, the athletic giant could now be looking to move on from the app.
According to a report from The Information today, the Baltimore-based brand is looking to sell MyFitnessPal, its free calorie counter and diet plan, with the coronavirus crisis wreaking havoc on its business — which had already been challenged as the brand lost share to competitors.
Under Armour’s Q1 sales for North America were down 28% to $609 million, and international sales dropped 12% to $287 million.
In an email to FN, Under Armour declined to confirm or deny the report, stating it is against company policy to comment on speculation or market rumors.
Under Armour acquired MyFitnessPal to add to its existing MapMyFitness platform. The company also purchased MapMyRun and Endomondo that year, which helped build its Connected Fitness digital platform. The following year, Under Armour launched Connected Footwear.
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“We run through life and expect to remain healthy, but things happen and the ability for us to use predictive analytics and data can help us,” Under Armour founder Kevin Plank told FN in May 2016. “Over 2 billion workouts and over 389 million runs were logged into our database last year. We’re finding the smartest people that could help us inform our consumer to make better decisions, to live healthier lives.”
Under Armour’s potential move away from MyFitnessPal comes at a time where other big names in the athletic apparel space are bolstering their digital investments. For instance, Lululemon Athletica Inc. announced late last month that it had entered into a deal to acquire in-home fitness startup acquire Mirror for $500 million. The company is known for its interactive mirror workout platform that features live and on-demand classes.
“The acquisition of Mirror provides Lululemon a foothold in the home fitness market, which has become more important due to the COVID-19 crisis,” Susquehanna Financial Group analyst Sam Poser wrote in a distribution note. “Lululemon management is confident, and we agree, that the investment in Mirror provides the Lululemon brand in-home access to both existing and new Lululemon customers.”
