Under Armour, Inc. (UA)

Under Armour, Inc. (UA) Consumer Business Overview

Under Armour, Inc. is a global leader in performance apparel, footwear, and accessories, distinguished by its innovative materials and designs. The company competes in the athletic wear market, leveraging wholesale, retail, and e-commerce channels to reach consumers across North America, EMEA, and Asia-Pacific.

What Is the Investment Thesis for UA?

Under Armour faces challenges in profitability, indicated by a negative profit margin of -10.4%. However, its gross margin of 47.0% suggests potential for improved profitability through cost management and pricing strategies. The company's high beta of 1.81 indicates higher volatility compared to the market, presenting both opportunities and risks for investors. Growth catalysts include expansion in international markets and continued innovation in product offerings, particularly in footwear and connected fitness. The company's strong brand recognition and established distribution network are key value drivers. Investors should monitor Under Armour's ability to improve profitability, manage its debt, and effectively compete with larger players in the athletic apparel market.

Based on FMP financials and quantitative analysis

UA Key Highlights

• Market capitalization of $2.84B reflects investor valuation of Under Armour's brand and growth potential.
• Gross margin of 47.0% indicates the company's ability to maintain pricing power and manage production costs.
• Negative profit margin of -10.4% highlights the need for improved operational efficiency and cost control.
• Beta of 1.81 suggests higher volatility compared to the market average, potentially offering higher returns but also increased risk.
• No dividend yield reflects the company's focus on reinvesting earnings for growth.

Who Are UA's Competitors?

UA is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are UA's Key Strengths?

• Strong brand recognition and reputation.
• Innovative performance apparel and footwear technologies.
• Established distribution network.
• Connected fitness platforms.

What Are UA's Weaknesses?

• Negative profit margin.
• High debt levels.
• Dependence on North American market.
• Intense competition from larger players.

What Could Drive UA Stock Higher?

• Launch of new footwear technologies aimed at improving athletic performance.
• Expansion of international distribution channels, particularly in Asia-Pacific.
• Continued investment in connected fitness platforms to enhance user engagement.
• Strategic partnerships with high-profile athletes and teams.

What Are the Key Risks for UA?

• Negative return on equity (-30.1%) — the business is not currently generating profit on shareholder capital.
• Weak fundamentals — a Piotroski F-Score of 3/9 flags soft profitability, leverage or efficiency.
• Economic downturns that could reduce consumer spending on apparel and footwear.
• Increased competition from larger players in the athletic apparel market.
• Supply chain disruptions that could impact production and distribution.
• Changing consumer preferences that could require adjustments to product offerings.

What Are the Growth Opportunities for UA?

• Expansion in International Markets: Under Armour has significant growth potential in international markets, particularly in Asia-Pacific and Latin America. These regions are experiencing rapid economic growth and increasing demand for athletic apparel and footwear. By tailoring its product offerings and marketing strategies to local preferences, Under Armour can capture a larger share of these markets. The global sportswear market is expected to reach $500 billion by 2028, providing a substantial opportunity for Under Armour to expand its international presence.
• Innovation in Footwear: Under Armour's footwear segment presents a significant growth opportunity. By investing in research and development and introducing innovative footwear technologies, the company can attract new customers and increase sales. The global athletic footwear market is projected to reach $130 billion by 2027, driven by advancements in materials and design. Under Armour can leverage its brand recognition and distribution network to capitalize on this growth.
• Connected Fitness Platforms: Under Armour's MapMyRun and MapMyRide platforms offer a unique opportunity to engage with consumers and generate recurring revenue. By enhancing these platforms with new features and content, the company can attract more users and increase subscription revenue. The global connected fitness market is expected to reach $6 billion by 2025, driven by the increasing popularity of wearable devices and fitness apps. Under Armour can leverage its expertise in athletic apparel and footwear to create a comprehensive connected fitness ecosystem.
• Strategic Partnerships: Forming strategic partnerships with athletes, teams, and organizations can enhance Under Armour's brand image and increase product sales. By aligning itself with high-profile athletes and teams, the company can reach a wider audience and build brand loyalty. The sports sponsorship market is a multi-billion dollar industry, providing ample opportunities for Under Armour to forge mutually beneficial partnerships.
• Direct-to-Consumer (DTC) Channel Growth: Under Armour can further expand its DTC channel through investments in its e-commerce platform and retail stores. By offering a seamless online and offline shopping experience, the company can attract more customers and increase sales. The global e-commerce market is experiencing rapid growth, driven by changing consumer preferences and technological advancements. Under Armour can leverage its brand recognition and product innovation to capitalize on this trend.

What Opportunities Does UA Have?

• Expansion in international markets.
• Growth in footwear segment.
• Enhancement of connected fitness platforms.
• Strategic partnerships.

What Threats Does UA Face?

• Changing consumer preferences.
• Economic downturns.
• Increased competition.
• Supply chain disruptions.

What Are UA's Competitive Advantages?

• Brand recognition and loyalty among athletes and fitness enthusiasts.
• Innovative performance apparel and footwear technologies.
• Established distribution network through wholesale channels, retail stores, and e-commerce.
• Connected fitness platforms that enhance customer engagement and generate recurring revenue.

What Does UA Do?

Under Armour, Inc., founded in 1996 by Kevin Plank, began with a simple idea: to create a superior performance t-shirt that kept athletes cool and dry during intense activity. Plank, a former University of Maryland football player, identified the need for moisture-wicking apparel that outperformed traditional cotton shirts. From this initial concept, Under Armour has evolved into a global brand offering a wide range of performance apparel, footwear, and accessories for men, women, and youth. The company's product line includes compression shirts, fitted apparel, loose-fitting garments, and innovative footwear designed for various sports and activities, including running, training, basketball, and cleated sports. Under Armour also offers accessories such as gloves, bags, headwear, and sports masks. Beyond apparel and footwear, Under Armour provides digital subscription and advertising services through its MapMyRun and MapMyRide platforms, catering to the connected fitness community. The company distributes its products through wholesale channels, including sporting goods chains and department stores, as well as directly to consumers through its own brand stores and e-commerce websites. With a presence in North America, Europe, Asia-Pacific, and Latin America, Under Armour continues to expand its global footprint and solidify its position as a leading innovator in the performance apparel industry.

What Products and Services Does UA Offer?

• Develops and markets performance apparel, footwear, and accessories.
• Offers apparel in compression, fitted, and loose fit types.
• Provides footwear for running, training, basketball, and other sports.
• Sells accessories such as gloves, bags, and headwear.
• Offers digital subscription and advertising services through MapMyRun and MapMyRide.
• Distributes products through wholesale channels, retail stores, and e-commerce websites.

How Does UA Make Money?

• Generates revenue through the sale of performance apparel, footwear, and accessories.
• Utilizes wholesale channels, including sporting goods chains and department stores.
• Operates a network of brand and factory house stores.
• Sells products directly to consumers through e-commerce websites.
• Offers digital subscription and advertising services.

What Industry Does UA Operate In?

Under Armour operates in the competitive apparel and footwear industry, which is characterized by evolving consumer preferences, technological advancements in materials, and increasing demand for athleisure wear. The global sportswear market is projected to reach significant growth in the coming years, driven by rising health awareness and participation in sports and fitness activities. Under Armour competes with major players like Nike and Adidas, as well as specialized brands like ZGN: Ermenegildo Zegna N.V.. The company differentiates itself through its focus on performance-enhancing apparel and footwear, as well as its connected fitness platforms.

Who Are UA's Key Customers?

• Athletes of all levels, from amateur to professional.
• Fitness enthusiasts seeking performance apparel and footwear.
• Consumers looking for comfortable and stylish athletic wear.
• Teams and organizations requiring branded apparel and footwear.
• Individuals using connected fitness platforms for training and tracking.

Company Profile

Under Armour, Inc. operates in the Apparel - Manufacturers industry within the Consumer Cyclical sector. It is headquartered in Baltimore, US. The company is led by CEO Kevin A. Plank. UA has traded publicly since 2016.

How Under Armour, Inc. Is Valued

Under Armour, Inc. carries a market capitalization of $2.84B, placing it in the mid-cap category. Relative to its peer group, UA's quantitative score of 32/100 is below the peer average of 57/100.

ROE -30%Key Financial Metrics

Return on equity for Under Armour, Inc. stands at -30.1%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is -11.2%, showing how much profit it generates from its asset base. Its free cash flow yield is -5.9%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.62 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is -18.0%, the inverse of the P/E and a quick read on earnings relative to price.

F-Score 3/9Financial Health

Under Armour, Inc.'s Piotroski F-Score is 3/9, a 9-point checklist of profitability, leverage and efficiency — flagging fundamental weakness worth scrutiny. Its Altman Z-Score of 1.90 places it in the grey zone, a middle ground that warrants monitoring.

FY2026 estForward Outlook

Wall Street analysts project Under Armour, Inc. revenue of about $4.96B for fiscal 2026, with EPS near $0.12. The estimate reflects 12 contributing analysts.

Net buyingInsider Activity

Over the past six months, Under Armour, Inc. insiders filed 26 SEC Form 4 transactions — 8 sales and 18 purchases. On net that is roughly 3.8M shares acquired (about $18.1M) — insiders putting money in tends to read as conviction.

UA Financials

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UA Analyst Consensus

UA MoonshotScore

UA Consumer Cyclical Stock FAQ

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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