Under Armour's Shift in Focus: What Does It Mean for MyFitnessPal?

In a surprise move, Under Armour recently announced that it would be divesting its popular fitness tracking app, MyFitnessPal. This decision comes as the company focuses on strengthening its core business and reducing complexity for consumers interacting with the Under Armour brand.

Under Armour's third-quarter sales exceeded Wall Street expectations, with the connected fitness segment, which includes MyFitnessPal and MapMyFitness, driving $37 million of the company's $1.43 billion sales during the quarter. The company launched its own Fitness+ service in September, offering a similar experience to MyFitnessPal for $9.99 a month.

Launched in 2009, MyFitnessPal was acquired by Under Armour in 2015 for $475 million. At the time, the app had already gained popularity among fitness enthusiasts and athletes looking to track their nutrition and exercise habits. The acquisition was seen as a strategic move by Under Armour to expand its presence in the digital health space.

However, it seems that the company has changed its strategy. In a statement, Under Armour CEO Patrik Frisk said that divesting MyFitnessPal will allow the company to 'actively manage our business' and prioritize its strategies and assets towards connecting even more deeply with its target consumer - the Focused Performer.

Frisk added that the move will also give the company more flexibility to invest in driving long-term returns and value for shareholders. While it is unclear what the future holds for MyFitnessPal, one thing is certain - Under Armour's focus on its core business and digital strategy will likely have a significant impact on the fitness industry as a whole.

The shift towards connected fitness has been a hot trend in recent months, with companies like Peloton leading the charge. With Under Armour's divestment of MyFitnessPal, it will be interesting to see how the company chooses to move forward and whether it will continue to play a role in the connected fitness space. For now, users of MyFitnessPal can breathe a sigh of relief knowing that the app will continue to operate independently under its current ownership.

Overall, Under Armour's decision to divest MyFitnessPal marks a significant shift in the company's focus towards its core business and digital strategy. While it remains to be seen what the future holds for MyFitnessPal, one thing is certain - the fitness industry will continue to evolve and adapt to changing consumer habits and preferences.

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