MyFitnessPal, the diet and exercise app of Under Armour, was hit by a data breach that affected approximately 150 million accounts, according to CNBC. Compromised information may include user names, email addresses and encrypted passwords but not payment data, which Under Armour processes separately.
User data was accessed in February and Under Armour became aware of the breach March 25. The sports apparel retailer took steps to notify affected customers and is working with data security firms and law enforcement to support the investigation. Additionally, Under Armour is monitoring for further suspicious activity and has started improving its systems for detecting and preventing unauthorized access, according to Reuters.
The breach comes at a time when Under Armour is struggling in North America, which accounted for 76% of the retailer’s 2017 sales, according to Moody’s. Revenue in the region fell 5.1% during the year, despite all other global segments posting aggregate sales growth of 43%.
"Under Armour’s biggest challenges right now are to reignite sustainable growth in North America, cut costs and inventory, while continuing to spend on growth and innovation in key areas such as international, footwear and direct-to consumer," said Mike Zuccaro, analyst at Moody’s in a statement. "Innovation remains critical if it hopes to stay competitive with its two larger rivals, Nike and Adidas."
Moody’s believes it is still too early to determine whether the data breach will impact Under Armour from either a legal or consumer perception perspective.
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