Delving into the evolution of Under Armour Incorporated (UA) from a promising contender in the sportswear industry to a company that aggressively pursued adjacency expansions to fuel its growth, only to encounter a failed growth strategy, this case outlined the corporate turnaround of UA under the leadership of Stephanie Linnartz. Linnartz joined the company as chief executive officer CEO on February 27, 2023, and embarked on a three-year turnaround strategy dubbed “protect this house 3.” On February 27, 2024, after a year at the helm, Linnartz found herself confronted with a difficult situation: UA’s shares had declined by about 8 per cent to US$8.89. Balancing the core and adjacencies while addressing the company’s immediate financial concerns posed a formidable challenge for the CEO’s leadership.
Lululemon Athletica Inc. was a Canadian multinational athletic apparel company for women and men. Founded Vancouver in 1998, the company ended fiscal year 2020 with a strong performance, bringing in over US$4.4 billion in annual sales. However, with only 14 per cent of its sales coming from international markets outside North America, the company’s priorities for 2021 and beyond included global expansion. As of February 2021, the new executive vice-president international was a month into his role and faced the challenge of quadrupling 2018 international sales of US$360 million to US$1.44 billion by the end of 2023. How many new stores should Lululemon Athletica Inc. plan to open in each of the company’s three major international markets of China, Asia-Pacific, and Europe? Which geographic regions or countries should it focus on to grow the Vancouver-based company internationally?