Dive Brief:
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The U.S. Olympic Speedskating team and Under Armour Inc. renewed their partnership through the 2022 Winter Games, they announced Friday.
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The deal came somewhat unexpectedly, after a controversial under-performance by the team in Sochi that some skaters blamed on their new Under Armour gear, suits known as Mach 39s.
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Baltimore, Md.-based Under Armour is a maker and retailer of sports apparel and footwear with an annual revenue of $2.3 billion. 94% of its business is in North America, where activewear is a hot commodity right now.
Dive Insight:
That was a close one. After throwing their new Under Armour “Mach 39” suits under the bus, The United States Olympic speed skating team still didn’t leave Sochi before renewing the partnership. The team were favorites to medal, as they have in past years, but failed to do so in any event. Several skaters said it was the Mach 39s that were literally dragging them down and preventing success, and many on the team switched to their old suits — also Under Armour — to no avail.
The whole debacle has revealed the pitfalls of a retailer hitching its wagon to a potentially dimming star. All is well for now, at least through 2022, and Under Armour can concentrate on keeping up in the hot retail activewear market until then.