Wall Street critics should consider Under Armour‘s track record of success before counting it out, CEO Kevin Plank told CNBC.
“You look in my eyes and tell me: Do you believe this is the team that’s done this for 21 years, 11 years public and knows how to win?,” Plank said on CNBC’s “Halftime Report.”
“You know, I think a lot of people bet against Tom Brady the other night, too,” he said.
Shares of Under Amour have taken a beating after the sportswear company reported lower-than-expected quarterly sales — its second disappointing quarter in a row. It also announced that its chief financial officer, Chip Molloy, will step down. The news initially wiped a quarter off the company’s market value.
In midday trading Tuesday, Class A shares were little changed, while Class C shares were about 1 percent lower. Both sets of shares have declined more than 30 percent in the past three months.
(12-month performance of Under Armour Class A shares; Source: FactSet)
The company’s sales were hurt by intense competition and slowing growth in North America. Under Armour’s net revenue rose about 12 percent to $1.31 billion, its slowest sales growth in eight years.
Under Amour also said its CFO is leaving for personal reasons, but did not elaborate. Molloy had joined the company last January.
On Tuesday, Plank said even though the company lost one of its key players, he is confident in the progress of his executive team.
“We’ve got an executive team that is robust and full and the same people that got us here. One of the lessons that we learned and we know, you ask is this the end? No this is not the end,” he said.
In order for the company to progress it has to change its narrative, Plank said.
“We have a growth company. You’ll never hear us not say that. Current outlook has double digit growth which is close to industry in the sector leading among the leaders there. Our business is so young, our business is really just getting started,” he said.
“This company throws punches. That’s what we do and it’s how we continue to expect to be able to run again,” he said. “But there are tweaks. This is not to say the world is rosy.”
Plank also mentioned his meeting with President Donald Trump to discuss jobs in U.S. Plank described Trump as “highly passionate” and a pro-business man who is a “real asset” for U.S. companies.
Last month, Plank said in a speech that “We should be bringing jobs back, not just to America, but tightening supply chains all over the world. We have the ability to do it better. It’s time for all of us to make an investment.”