Under Armour, the athletic apparel company that is growing into a digital sports company, had a tumble in its stocks after Sports Authority went bankrupt and closed its doors. The company had a loss of $52.6 million in its second quarter, because of the loss of Sports Authority’s business in selling Under Armour items.
Sports Authority went under for a number of reasons. Ten years ago it was the largest sporting good retailer, but since then it has struggled to keep up with competitors, like Dick’s Sporting Goods and Lululemon, and sites online competition like Amazon. When they went private in 2006 the main strategy was to achieve market dominance by having the most stores of all their competitors.