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Under Armour lauded for labor rights

Under Armour has secured a stamp of approval from Fair Labor Association (FLA). The US-based sports apparel maker’s social compliance program includes strong policies for monitoring and fixing problems affecting workers in the supply chain. This includes a commitment at the board and executive level to protect workers and improve conditions, regular training on workplace standards, clear channels through which workers can report grievances and a comprehensive monitoring program that involves meeting with unions.

FLA is a labor group which monitors labor practices covering factory workers around the globe. As a part of accreditation process, Under Armour published a list of apparel and footwear factories in nearly 30 countries where about 90 per cent of its products are made, including places such as China, Indonesia, Jordan, Mexico, Vietnam and the United States. Other factories are located in Brazil, Egypt, El Salvador, Haiti and Malaysia. Under Armour has been working on improving operations, including supply chain initiatives that are expected to help boost 2019’s gross margins. The company’s accelerated innovation agenda, disciplined go-to-market process and powerful consumer-centric approach gives it increasingly greater confidence in its ability to deliver for Under Armour athletes, customers and shareholders. The company has guided gross margin to an improvement of 60 to 80 basis points from 2018’s adjusted gross margin.