Under Armour, Inc. (UAA)

Under Armour, Inc. (UAA) Consumer Business Overview

Under Armour, Inc. designs and distributes performance apparel, footwear, and accessories, primarily under the UNDER ARMOUR brand. The company operates globally through wholesale, retail, and e-commerce channels, facing competition in the athletic apparel market while focusing on innovation and brand strength to drive growth.

What Is the Investment Thesis for UAA?

Under Armour faces challenges in a competitive athletic apparel market, reflected in its negative profit margin of -10.4%. However, its gross margin of 47.0% indicates potential for improved profitability with effective cost management. The company's beta of 1.81 suggests higher volatility compared to the market. Growth catalysts include expansion in international markets and continued innovation in product offerings. Key value drivers are brand strength, market share gains, and improved operational efficiency. Investors should monitor the company's ability to manage expenses, drive revenue growth, and navigate competitive pressures.

Based on FMP financials and quantitative analysis

UAA Key Highlights

• Market capitalization of $2.94B, reflecting investor valuation of the company.
• Negative profit margin of -10.4%, indicating challenges in achieving profitability.
• Gross margin of 47.0%, suggesting potential for improved profitability through cost management.
• Beta of 1.81, indicating higher volatility compared to the overall market.
• Operates 422 brand and factory house stores, providing a direct-to-consumer sales channel.

Who Are UAA's Competitors?

UAA 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 UAA's Key Strengths?

• Strong brand recognition and reputation in the athletic apparel market.
• Innovation in performance fabrics and apparel technology.
• Established distribution network through wholesale and direct-to-consumer channels.
• Partnerships with athletes and sports organizations.

What Are UAA's Weaknesses?

• Negative profit margin, indicating challenges in achieving profitability.
• High beta, suggesting higher volatility compared to the market.
• Intense competition from larger and more established players.
• Dependence on brand image and marketing effectiveness.

What Could Drive UAA Stock Higher?

• Expansion in international markets, driving revenue growth.
• Continued investment in product innovation and technology, attracting new customers.
• Growth in the direct-to-consumer channel, improving profitability.
• Potential strategic partnerships and endorsements, enhancing brand visibility.

What Are the Key Risks for UAA?

• 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.
• Intense competition from established athletic apparel brands.
• Fluctuations in raw material costs and supply chain disruptions.
• Changes in consumer preferences and fashion trends.
• Economic downturns and reduced consumer spending.

What Are the Growth Opportunities for UAA?

• Expansion in International Markets: Under Armour has the opportunity to expand its presence in international markets, particularly in Asia-Pacific and Latin America. These regions offer significant growth potential due to increasing disposable incomes and growing interest in sports and fitness. Successful expansion requires adapting product offerings and marketing strategies to local preferences and building strong distribution networks. This could contribute significantly to revenue growth over the next 3-5 years.
• Product Innovation and Technology: Continued investment in product innovation and technology can drive growth by attracting new customers and retaining existing ones. Under Armour can focus on developing new performance fabrics, incorporating wearable technology into its apparel and footwear, and creating personalized fitness solutions. These innovations can differentiate Under Armour from its competitors and command premium pricing, contributing to revenue and margin expansion.
• Direct-to-Consumer (DTC) Channel Growth: Expanding the direct-to-consumer channel through e-commerce and branded retail stores can improve profitability and enhance brand engagement. Under Armour can invest in improving its online shopping experience, offering personalized product recommendations, and expanding its store footprint in strategic locations. DTC sales typically generate higher margins than wholesale sales, contributing to overall profitability.
• Strategic Partnerships and Endorsements: Forming strategic partnerships with athletes, sports teams, and fitness influencers can enhance brand visibility and credibility. Under Armour can leverage these partnerships to promote its products, reach new audiences, and build brand loyalty. Successful partnerships require careful selection of partners who align with Under Armour's brand values and target market. This can drive sales and improve brand perception.
• Digital Fitness Platforms: Under Armour's MapMyRun and MapMyRide platforms offer opportunities for growth through digital subscriptions and advertising services. The company can invest in enhancing these platforms with new features, personalized training plans, and social networking capabilities. By attracting more users and increasing engagement, Under Armour can generate recurring revenue from subscriptions and advertising, contributing to overall profitability.

What Opportunities Does UAA Have?

• Expansion in international markets, particularly in Asia-Pacific and Latin America.
• Continued investment in product innovation and technology.
• Growth in the direct-to-consumer channel through e-commerce and branded retail stores.
• Strategic partnerships and endorsements to enhance brand visibility.

What Threats Does UAA Face?

• Intense competition from established athletic apparel brands.
• Fluctuations in raw material costs and supply chain disruptions.
• Changes in consumer preferences and fashion trends.
• Economic downturns and reduced consumer spending.

What Are UAA's Competitive Advantages?

• Brand recognition and loyalty among athletes and consumers.
• Innovation in performance fabrics and apparel technology.
• Established distribution network through wholesale and direct-to-consumer channels.
• Partnerships with athletes and sports organizations.

What Does UAA Do?

Under Armour, Inc., founded in 1996 by Kevin Plank, began with a focus on developing performance apparel designed to wick away sweat and regulate body temperature. Plank, a former University of Maryland football player, identified a need for athletic wear that would stay drier and lighter than traditional cotton T-shirts. From this initial concept, Under Armour has evolved into a global brand offering a wide range of products, including apparel, footwear, and accessories for men, women, and youth. The company's products are designed for various sports and activities, including running, training, basketball, and outdoor pursuits. Under Armour sells its products through wholesale channels, including sporting goods chains and department stores, as well as directly to consumers through its own branded retail stores and e-commerce websites. The company operates in North America, Europe, the Middle East, Africa, Asia-Pacific, and Latin America. Under Armour's brand is recognized for its innovation in performance fabrics and its focus on helping athletes improve their performance.

What Products and Services Does UAA Offer?

• Develops and markets performance apparel for men, women, and youth.
• Offers footwear for various sports and activities, including running, training, and basketball.
• Provides accessories such as gloves, bags, headwear, and sports masks.
• Sells products through wholesale channels, including sporting goods chains and department stores.
• Operates a network of branded retail stores and factory outlets.
• Sells products directly to consumers through e-commerce websites.
• Offers digital subscription and advertising services through MapMyRun and MapMyRide platforms.

How Does UAA Make Money?

• Designs, develops, and markets performance apparel, footwear, and accessories.
• Generates revenue through wholesale sales to retailers and distributors.
• Generates revenue through direct-to-consumer sales via retail stores and e-commerce.
• Offers digital subscription and advertising services through fitness platforms.

What Industry Does UAA Operate In?

Under Armour operates in the competitive athletic apparel and footwear industry, which includes major players like Nike and Adidas. The industry is driven by trends in health and fitness, athleisure fashion, and increasing participation in sports and outdoor activities. The global sports and fitness clothing market is expected to continue growing, driven by rising disposable incomes and increasing awareness of the benefits of an active lifestyle. Under Armour competes by focusing on innovation, brand marketing, and strategic partnerships with athletes and sports organizations.

Who Are UAA's Key Customers?

• Athletes of all levels, from amateur to professional.
• Fitness enthusiasts and individuals seeking performance apparel.
• Sports teams and organizations.
• Consumers seeking athletic-inspired lifestyle apparel.

Net buyingInsider Activity

Over the past six months, Under Armour, Inc. insiders filed 4 SEC Form 4 transactions — 0 sales and 4 purchases. On net that is roughly 2.3M shares acquired (about $14.4M) — insiders putting money in tends to read as conviction.

UAA Valuation & Market Position

With a $2.94B market cap, Under Armour, Inc. sits in the mid-cap segment of the market. Relative to its peer group, UAA'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 1.89 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 18 contributing analysts.

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. UAA has traded publicly since 2005.

UAA Financials

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UAA Analyst Consensus

UAA MoonshotScore

Latest Under Armour, Inc. Analysis

What Investors Ask About Under Armour, Inc. (UAA) — Consumer Cyclical

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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