Under Armour

To make athletes better through innovation by becoming the #1 global brand for performance athletic apparel and footwear.

Under Armour SWOT Analysis

Updated: October 6, 2025 • 2025-Q4 Analysis

How to Use This Analysis

This analysis for Under Armour was created using Alignment.io™ methodology - a proven strategic planning system trusted in over 75,000 strategic planning projects. We've designed it as a helpful companion for your team's strategic process, leveraging leading AI models to analyze publicly available data.

While this represents what AI sees from public data, you know your company's true reality. That's why we recommend using Alignment.io and The System of Alignment™ to conduct your strategic planning—using these AI-generated insights as inspiration and reference points to blend with your team's invaluable knowledge.

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The Under Armour SWOT Analysis reveals a company at a critical inflection point. Its core strength—a brand built on authentic performance innovation—is being undermined by operational weaknesses, including North American market stagnation, chronic inventory issues, and a struggling DTC channel. The return of founder Kevin Plank presents a clear opportunity to refocus the mission. To succeed, Under Armour must leverage its performance DNA to aggressively expand internationally and innovate in footwear, while simultaneously restoring brand premiumness through disciplined operational execution. The primary threats are not just scaled competitors like Nike, but nimble, trend-right brands that have captured consumer excitement. This plan must be about disciplined focus on 'making athletes better' to reclaim its market position and drive profitable growth.

Nike Adidas Lululemon Puma New Balance

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To make athletes better through innovation by becoming the #1 global brand for performance athletic apparel and footwear.

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Strengths

BRAND: Strong brand equity in North America's performance apparel niche.
INNOVATION: A legacy of material science breakthroughs like HeatGear.
PARTNERSHIPS: Key endorsements with elite athletes like Stephen Curry.
DISTRIBUTION: Established wholesale relationships with major retailers.
LEADERSHIP: Return of founder Kevin Plank brings renewed focus & vision.

Weaknesses

RELIANCE: Over-dependence on the stagnant North American market for revenue.
INVENTORY: Persistent challenges with excess inventory and discounting.
FOOTWEAR: Underperforming footwear division, lagging far behind rivals.
BRAND-HEAT: Lost significant brand momentum to competitors like Lululemon/Hoka.
DTC: Struggling to grow a profitable direct-to-consumer channel.

Opportunities

GLOBAL: Major growth potential in EMEA and APAC, especially China.
WOMEN'S: Untapped potential in the women's category, a key growth driver.
REFOCUS: CEO's return provides a catalyst to shed non-core assets/focus.
FOOTWEAR: Opportunity to reset footwear strategy around running & basketball.
PREMIUMIZATION: Shift away from discount channels to restore brand value.

Threats

COMPETITION: Intense pressure from Nike, Adidas, and surging Hoka/On.
LIFESTYLE: Consumer shift to athleisure over pure performance apparel.
ECONOMY: Inflation and economic uncertainty impacting discretionary spending.
DISTRIBUTION: Shifting power dynamics with key wholesale partners.
INNOVATION-GAP: Competitors are outpacing UA in new product technologies.

Key Priorities

BRAND: Re-ignite brand heat via marketing and premium product assortment.
GLOBAL: Aggressively accelerate profitable growth in international markets.
PRODUCT: Win in key footwear categories and elevate core apparel innovation.
OPERATIONS: Optimize inventory and improve profitability of DTC channels.

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Under Armour OKR

Updated: October 6, 2025 • 2025-Q4 Analysis

The Under Armour OKR plan is a focused and potent blueprint for a turnaround. It correctly prioritizes igniting the brand, winning in core products, expanding globally, and achieving operational excellence. This isn't a generic growth plan; it's a strategic response to the specific challenges identified in the SWOT analysis, such as brand dilution and inventory issues. The key results are specific, measurable, and directly address weaknesses while seizing opportunities. By rallying the team around these clear, interconnected goals, Under Armour can rebuild momentum and translate its powerful mission into tangible, profitable growth, moving from defense to a confident offense.

Nike Adidas Lululemon Puma New Balance

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To make athletes better through innovation by becoming the #1 global brand for performance athletic apparel and footwear.

IGNITE THE BRAND

Re-establish Under Armour as a premium performance brand.

CAMPAIGN: Launch a top-of-funnel brand campaign that increases unaided brand awareness by 15% in target segments.
PREMIUMIZE: Increase the Average Selling Price (ASP) across our DTC channels by 10% through reduced promotions.
INFLUENCE: Triple our media share of voice in authentic performance categories (run, train, bball) vs. competitors.
NPS: Improve our product Net Promoter Score (NPS) from 38 to 45 for all newly launched footwear and apparel.

WIN IN PRODUCT

Create innovative, must-have apparel and footwear.

FOOTWEAR: Grow our performance running footwear sales by 25% by launching two new, top-rated shoe platforms.
WOMEN'S: Increase the revenue contribution from the women's category from 25% to 30% of the total business.
INNOVATION: Generate 20% of apparel revenue from products launched in the last 12 months with new tech.
DESIGN: Reduce the product creation calendar from 18 months to 12 by implementing new digital design tools.

EXPAND GLOBALLY

Accelerate profitable growth outside of North America.

APAC: Achieve 15% constant-currency revenue growth in the APAC region, with a focus on our China DTC business.
EMEA: Increase operating income in the EMEA region by 20% through disciplined channel and country investment.
DISTRIBUTION: Open 50 new partner-owned Brand House stores in key international cities to elevate brand presence.
ECOMMERCE: Grow international ecommerce sales to represent 35% of total DTC revenue, up from 25% today.

DRIVE PROFITABILITY

Build a more efficient and profitable operating model.

MARGIN: Increase gross margin by 200 basis points through disciplined pricing and reduced promotional depth.
INVENTORY: Reduce days of inventory outstanding (DIO) by 15 days through better AI-driven demand forecasting.
DTC: Improve DTC operating margin from 5% to 10% by optimizing our retail footprint and ecommerce fulfillment.
SG&A: Lower SG&A as a percentage of revenue by 100 basis points by executing on identified cost efficiencies.

METRICS

Gross Margin Percentage: 48.5%
Revenue Growth (Constant Currency): 5.0%
Inventory Turnover: 3.5x

VALUES

Love Athletes
Celebrate the Wins
Stand for Equality
Act Sustainably
Fight on Together

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Under Armour Retrospective

AI-Powered Insights

Claude

Gemini

GPT

Under Armour Q3 2024 Earnings Report & Transcript
Under Armour Investor Day Presentations
Company Corporate Website and Press Releases
Industry reports on athletic apparel market share
Financial analysis from sources like Bloomberg, Reuters

Nike Adidas Lululemon Puma New Balance

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To make athletes better through innovation by becoming the #1 global brand for performance athletic apparel and footwear.

Toggle Theme

What Went Well

INVENTORY: Made progress in reducing overall inventory levels year-over-year.
INTERNATIONAL: EMEA region showed positive revenue growth, a bright spot.
COSTS: Executed on cost-cutting measures, protecting bottom-line margins.
WHOLESALE: Maintained stability with key North American wholesale partners.
LEADERSHIP: Decisive leadership changes made to reset product and brand.

Not So Well

REVENUE: Overall revenue declined, particularly in the critical NA market.
DTC: Direct-to-consumer channel performance was weak, with negative comps.
FOOTWEAR: Footwear sales continued to decline, failing to gain traction.
MARGINS: Gross margins were pressured by promotional activity to clear goods.
GUIDANCE: Future revenue guidance was lowered, signaling ongoing challenges.

Learnings

STRATEGY: A brand reset is essential; the current strategy is not driving growth.
NORTH-AMERICA: The NA market cannot be the sole engine; global is critical.
PRODUCT: Without compelling new product, marketing spend is inefficient.
PROMOTIONS: Over-promotion is damaging brand equity and long-term margins.
SIMPLICITY: The business has become too complex; simplification is needed.

Action Items

BRAND: Launch a major top-of-funnel marketing campaign in H2 2025.
PRODUCT: Prioritize FY26 product pipeline for footwear and women's apparel.
COSTS: Identify an additional $75M in annualized cost savings.
INTERNATIONAL: Reallocate marketing spend to support growth in EMEA & APAC.
DTC: Revamp the ecommerce experience to improve conversion and AOV.

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Organization	SWOT Analysis	OKR Plan	Top 6	Retrospective

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Under Armour Market

AI-Powered Insights

Claude

Gemini

GPT

Under Armour Q3 2024 Earnings Report & Transcript
Under Armour Investor Day Presentations
Company Corporate Website and Press Releases
Industry reports on athletic apparel market share
Financial analysis from sources like Bloomberg, Reuters

Founded: 1996
Market Share: Approx. 2.5% of global sportswear market
Customer Base: Athletes and fitness enthusiasts, primarily in North America.
Category:
Performance Apparel
SIC Code: 2329
NAICS Code: 315210 Cut and Sew Apparel Contractors
Location: Baltimore, Maryland
Zip Code: 21230
Congressional District: MD-7 BALTIMORE
Employees: 15000

Competitors

Nike View Analysis

Adidas Request Analysis

Lululemon Request Analysis

Puma Request Analysis

New Balance Request Analysis

Products & Services

No products or services data available

Distribution Channels

Under Armour Business Model Analysis

AI-Powered Insights

Claude

Gemini

GPT

Under Armour Q3 2024 Earnings Report & Transcript
Under Armour Investor Day Presentations
Company Corporate Website and Press Releases
Industry reports on athletic apparel market share
Financial analysis from sources like Bloomberg, Reuters

Problem

Athletes need gear that enhances performance.
Standard apparel is not optimized for sport.
Discomfort from sweat/heat limits potential.

Solution

Performance-wicking fabrics (HeatGear).
Cushioning tech in footwear (HOVR).
Apparel designed for specific athletic movements.

Key Metrics

Revenue Growth (by region and category).
Gross Margin Percentage.
Inventory Turnover.
Sell-through rates at wholesale partners.

Unique

Authentic heritage born on the football field.
Relentless focus on performance over fashion.
Founder-led vision to make athletes better.

Advantage

Brand credibility with serious athletes.
Patented material and footwear technologies.
Established North American distribution.

Channels

Wholesale (Dick's, Foot Locker).
Direct eCommerce website.
Brand House and Factory House retail stores.

Customer Segments

Team sport athletes (youth to pro).
Dedicated runners and trainers.
Fitness enthusiasts seeking performance gear.

Costs

Cost of Goods Sold (manufacturing, materials).
SG&A (marketing, athlete endorsements).
R&D for new product innovation.
Retail and eCommerce operating expenses.

Under Armour Product Market Fit Analysis

Updated: October 6, 2025

Under Armour provides performance athletic apparel and footwear engineered with cutting-edge material science. By focusing exclusively on making athletes better, its products deliver a measurable advantage in training and competition. This commitment to innovation and authentic on-field credibility helps serious athletes achieve their goals, providing the edge that generic sportswear simply cannot match.

INNOVATION: Our gear gives you a measurable performance advantage.

PERFORMANCE: We are authentically built to make athletes better.

DESIGN: Our products are engineered for the rigors of your sport.

Before State

Training in uncomfortable, sweat-soaked gear.
Lacking performance-specific footwear.
Generic apparel not built for athletic needs.

After State

Feeling light, dry, and focused on performance.
Supported by gear designed for specific movements.
Gaining a competitive edge through apparel tech.

Negative Impacts

Distraction and discomfort during workouts.
Sub-optimal performance and slower recovery.
Increased risk of chafing and overheating.

Positive Outcomes

Achieving personal bests and training goals.
Enhanced confidence in athletic endeavors.
Faster muscle recovery and better endurance.

Key Metrics

Customer Retention Rates

Est. 30-35%

Net Promoter Score (NPS)

Est. 35-40

User Growth Rate

Low single-digit declines

Customer Feedback/Reviews

1.2k+ reviews on G2 (for apps)

Repeat Purchase Rates

Moderate, lower than lifestyle brands

Requirements

Belief that gear directly impacts performance.
Willingness to invest in specialized apparel.
Desire for an athletic, not fashion, identity.

Why Under Armour

Develop advanced, proprietary material tech.
Design products for specific athletic use cases.
Market with elite athletes to prove credibility.

Under Armour Competitive Advantage

Authentic on-field credibility and heritage.
Decades of material science innovation focus.
Deeply rooted in the mindset of the athlete.

Proof Points

Trusted by Stephen Curry, Jordan Spieth, etc.
Original inventor of performance wicking tees.
Official outfitter for top NCAA programs.

Under Armour Market Positioning

AI-Powered Insights

Claude

Gemini

GPT

Under Armour Q3 2024 Earnings Report & Transcript
Under Armour Investor Day Presentations
Company Corporate Website and Press Releases
Industry reports on athletic apparel market share
Financial analysis from sources like Bloomberg, Reuters

Strategic pillars derived from our vision-focused SWOT analysis

Lead with performance-enhancing product technology.

Win market share in key run, train & court categories.

Accelerate profitable growth in EMEA and APAC regions.

Re-ignite premium brand heat with top-of-funnel marketing.

What You Do

Design, market, and sell performance athletic apparel, footwear, & accessories.

Target Market

Serious athletes and individuals seeking a performance edge in their training.

Differentiation

Authentic heritage in on-field performance and innovation.
Material science focus (HeatGear, ColdGear, HOVR).

Revenue Streams

Apparel sales (65%)
Footwear sales (25%)
Accessories sales (10%)

Under Armour Operations and Technology

AI-Powered Insights

Claude

Gemini

GPT

Under Armour Q3 2024 Earnings Report & Transcript
Under Armour Investor Day Presentations
Company Corporate Website and Press Releases
Industry reports on athletic apparel market share
Financial analysis from sources like Bloomberg, Reuters

Company Operations

Organizational Structure: Functional structure with regional business units (NA, EMEA, APAC, LATAM).
Supply Chain: Diversified manufacturing base, primarily in Asia; multiple distribution centers.
Tech Patents: Patents in fabric technology, footwear cushioning (HOVR), and smart apparel.
Website: https://www.underarmour.com

Top Clients

Board Members

Under Armour Competitive Forces

Threat of New Entry

MODERATE: Building a global brand is capital-intensive, but new DTC brands (e.g., On, Hoka) have proven it's possible to scale quickly in niches.

Supplier Power

MODERATE: UA relies on Asian manufacturers, but its volume gives it some negotiating leverage. Raw material price volatility is a key factor.

Buyer Power

HIGH: Consumers have many choices. Wholesale buyers like Dick's have significant leverage due to their scale and control of distribution.

Threat of Substitution

HIGH: Consumers can easily switch to other brands or opt for private label goods. The 'good enough' factor is strong for non-elite athletes.

Competitive Rivalry

VERY HIGH: Dominated by giants Nike & Adidas with massive scale. Lululemon, Hoka, On are high-growth niche players with strong brand heat.

Analysis of AI Strategy

Updated: October 6, 2025 • 2025-Q4 Analysis

The Under Armour AI SWOT Analysis underscores a significant vulnerability and a compelling opportunity. While possessing a latent data advantage from its connected fitness past, the company lacks a cohesive strategy and is falling behind rivals who are actively integrating AI into their core operations. The most immediate path to value is applying AI to solve the company's most pressing problem: inventory management via improved supply chain forecasting. Concurrently, leveraging generative AI in product design can help close the innovation gap. For Under Armour, AI should not be a speculative venture but a critical tool to enhance operational efficiency and amplify its core mission of delivering performance-enhancing products. The greatest threat is inaction, which will cede further ground to more technologically advanced competitors.

Nike Adidas Lululemon Puma New Balance

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To make athletes better through innovation by becoming the #1 global brand for performance athletic apparel and footwear.

Strengths

DATA: Potential to leverage years of user data from MapMyFitness apps.
SUPPLY-CHAIN: Existing data infrastructure for manufacturing and logistics.
PERFORMANCE: Core business is data-rich (e.g., biometrics, performance).
ECOMMERCE: Direct access to customer purchase data for personalization.
PARTNERS: Athlete data can inform and validate AI-driven product design.

Weaknesses

STRATEGY: Lack of a clearly articulated, public-facing AI vision or lead.
EXECUTION: Lagging competitors in implementing AI in design & marketing.
TALENT: Not known as a top destination for elite AI engineering talent.
INTEGRATION: Siloed data between apps, ecommerce, and retail channels.
INVESTMENT: Financial constraints may limit large-scale AI R&D spending.

Opportunities

DESIGN: Use generative AI to rapidly prototype and test new product designs.
PERSONALIZATION: AI-driven recommendations on ecommerce and in-app experiences.
SUPPLY-CHAIN: AI for demand forecasting to optimize inventory and reduce costs.
MARKETING: Hyper-targeted digital marketing campaigns based on user data.
COACHING: AI-powered personalized training plans via connected fitness apps.

Threats

COMPETITION: Nike/Adidas are heavily investing in AI, widening the gap.
OBSOLESCENCE: Risk of product development becoming too slow without AI.
PRIVACY: Mishandling user data could lead to significant brand damage.
COST: High cost of developing and implementing cutting-edge AI solutions.
DEPENDENCY: Over-reliance on third-party AI vendors limits differentiation.

Key Priorities

SUPPLY-CHAIN: Deploy AI for demand forecasting to slash inventory costs.
DESIGN: Leverage generative AI to accelerate the product design lifecycle.
MARKETING: Implement AI for personalized customer journeys and campaigns.
DATA: Unify customer data platforms to create a single source of truth.

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Under Armour Financial Performance

AI-Powered Insights

Claude

Gemini

GPT

Under Armour Q3 2024 Earnings Report & Transcript
Under Armour Investor Day Presentations
Company Corporate Website and Press Releases
Industry reports on athletic apparel market share
Financial analysis from sources like Bloomberg, Reuters

Profit: -$3.1 million (Net Income, TTM)

Market Cap: $3.1 Billion (as of late 2024)

Stock Performance

Annual Report: View Report

Debt: $1.7 Billion (Total Debt)

ROI Impact: Profitability pressures impacting capital allocation and marketing spend.

SWOT Index

Composite strategic assessment with 10-year outlook

/ 100

Challenged Incumbent

ICM Index

STRATEGIC ADVISOR ASSESSMENT

Under Armour's Iconic Index reflects a company with a strong, ambitious mission but significant execution challenges. Its North Star achievability and SWOT score are weighed down by intense competition and internal weaknesses. The OKRs and Core Strategy are strong and focused, providing a clear path. AI potential is moderate but unrealized. The resulting Growth Multiplier suggests a difficult, slow-growth path ahead unless the strategic plan is executed flawlessly to overcome market headwinds and operational hurdles.

SWOT Factors

Upside: 64.7 Risk: 80.0

OKR Impact

AI Leverage

Top 3 Strategic Levers

PRODUCT: Flawless execution of footwear & women's product reset.

BRAND: Restore premium brand perception via disciplined marketing.

GLOBAL: Achieve sustained, profitable growth in APAC and EMEA.

AI Disclosure

This report was created using the Alignment Method—our proprietary process for guiding AI to reveal how it interprets your business and industry. These insights are for informational purposes only and do not constitute financial, legal, tax, or investment advice.

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