Under Armour Lacks a Competitive Advantage, but Association With Global Athletics Provides a Base

We view Under Armour as lacking a moat, given its failure to build a competitive advantage over other athletic apparel firms. Between 2008 and 2016, the company's North American sales increased to $4 billion from $700 million and it passed Adidas as the region's second-largest athletic apparel brand after Nike. However, Under Armour's North America sales are little changed over the past seven years as it has been challenged by established competitors and new entrants. In March 2024, controlling shareholder Kevin Plank returned to the CEO position with the intention of restoring the firm to its glory years as a performance sports pioneer, but a turnaround will take time.