Under Armour, Inc. (UA): History, Ownership, Mission, How It Works & Makes Money

Ever wondered how Under Armour, Inc. navigates the fiercely competitive global sportswear landscape?

Despite facing challenges, the company reported revenues of $5.7 billion for the fiscal year ending March 31, 2024, showcasing its significant footprint built on performance apparel, footwear, and accessories, even as its largest market, North America, saw a 10% decline.

With international revenue growing by 7% and significant restructuring plans announced, understanding its journey, ownership structure, and core mission becomes crucial.

Ready to explore the engine behind the brand, how it generates income, and the strategies shaping its future in the dynamic athletic wear industry?

Under Armour, Inc. (UA) History

Understanding a company's past is crucial for evaluating its present state and future potential. Let's look back at how Under Armour started and evolved.

Under Armour's Founding Timeline

The company began with a simple idea driven by athletic necessity.

• Year established: 1996
• Original location: Initially operated out of founder Kevin Plank's grandmother's basement in Washington, D.C., before moving to Baltimore, Maryland.
• Founding team members: Kevin Plank, a former University of Maryland special teams captain for the football team, was the sole founder.
• Initial capital/funding: Plank reportedly started the company with approximately $20,000 from his personal savings and multiple credit cards. He also took out a Small Business Administration loan.

Under Armour's Evolution Milestones

Key moments have shaped the company's growth trajectory over the years.

Under Armour's Transformative Moments

Certain decisions fundamentally altered the company's path.

• The Pivot from Niche to Mainstream: Moving beyond just compression gear for football players to a full range of athletic apparel and footwear for diverse sports and consumers was critical for scaling.
• Aggressive Brand Building: Early high-profile endorsements and the powerful 'Protect This House' campaign cemented a distinct, performance-driven brand identity that resonated strongly, fueling rapid growth.
• The Digital Fitness Bet (and subsequent refocus): The significant investment in connected fitness apps represented a bold move to own the digital relationship with athletes. While ambitious, the later sale of MyFitnessPal indicated a strategic pivot back towards core product innovation and profitability in apparel and footwear by 2024.

Under Armour, Inc. (UA) Ownership Structure

Under Armour operates as a publicly traded company, meaning its shares are available for purchase by the general public on stock exchanges. This structure involves a mix of institutional investors, company insiders, and retail shareholders holding ownership stakes, shaped significantly by its dual-class share system.

Under Armour, Inc.'s Current Status

As of the end of 2024, Under Armour, Inc. is listed on the New York Stock Exchange under the ticker symbols UA (Class C shares) and UAA (Class A shares). Its status as a public entity subjects it to regulatory oversight and reporting requirements mandated by bodies like the Securities and Exchange Commission (SEC). The company maintains a dual-class share structure, which significantly impacts voting control, primarily concentrating it with the founder, Kevin Plank.

Under Armour, Inc.'s Ownership Breakdown

The ownership of Under Armour's publicly traded shares is distributed among various groups. Based on filings towards the end of the 2024 fiscal year, the approximate breakdown of equity ownership is as follows, though voting power differs due to the share structure:

Under Armour, Inc.'s Leadership

Guiding the company's strategic direction and day-to-day operations at the close of 2024 is a dedicated executive team. Understanding the company's direction also involves looking into the Mission Statement, Vision, & Core Values of Under Armour, Inc. (UA). Key figures leading the organization include:

• Kevin Plank: President & Chief Executive Officer
• David Baxter: President, Americas
• Shawn Curran: Chief Supply Chain Officer
• Jim Duda: Chief Technology Officer
• Mehri Shadman: Chief Legal Officer & Corporate Secretary
• Yassine Saidi: Chief Product Officer
• John Varvatos: Chief Design Officer

This leadership team is tasked with executing strategy based on 2024 fiscal year performance and positioning the company for future opportunities.

Under Armour, Inc. (UA) Mission and Values

Under Armour's identity and strategic direction are shaped by its core mission and values, guiding its efforts to inspire athletes globally. These principles define the company's culture and its approach to innovation and performance apparel.

Under Armour's Core Purpose

The company explicitly outlines its guiding principles through formal statements that communicate its aspirations and operational philosophy. You can explore the detailed Mission Statement, Vision, & Core Values of Under Armour, Inc. (UA).

Official mission statement

Under Armour's mission is: To make all athletes better through passion, design and the relentless pursuit of innovation.

Vision statement

The company envisions a future where it empowers athletes everywhere, pushing the boundaries of human potential. Its vision is: To inspire you with performance solutions you never knew you needed and can’t imagine living without.

Company slogan

A key brand message often used is: The Only Way Is Through.

Under Armour, Inc. (UA) How It Works

Under Armour operates by designing, developing, marketing, and distributing performance apparel, footwear, and accessories for athletes and active consumers globally. Value creation hinges on product innovation, brand building, and managing a multi-channel distribution network encompassing wholesale partners and direct-to-consumer sales.

Under Armour, Inc.'s Product/Service Portfolio

Under Armour, Inc.'s Operational Framework

The company's operational engine starts with in-house design and product development, heavily focused on material science and performance technology. Manufacturing is predominantly outsourced to independent manufacturers, primarily located in Asia, allowing for scalability and cost management. Inventory is managed through a global network of distribution centers. Products reach consumers via two main channels: wholesale (selling to retailers like Dick's Sporting Goods, Kohl's) and Direct-to-Consumer (DTC), which includes company-owned retail stores and e-commerce websites. In fiscal year 2024, DTC represented a significant portion of the business, approximately 41% or $2.3 billion of total revenue, reflecting a strategic emphasis on controlling the brand experience and capturing higher margins.

Under Armour, Inc.'s Strategic Advantages

A core strength lies in the company's established brand identity, synonymous with performance and athleticism, though it faces intense competition. Continuous investment in product innovation, particularly in advanced materials and footwear technology, acts as a key differentiator. The balanced distribution strategy, mixing wholesale partnerships with a growing DTC presence, provides broad market access while fostering direct customer relationships. Furthermore, its global reach, with international markets contributing significantly to revenue (around $2.1 billion in fiscal 2024), offers diversification. Understanding who holds stakes in the company provides further context. Exploring Under Armour, Inc. (UA) Investor Profile: Who’s Buying and Why? delves into the ownership structure. However, maintaining brand heat and effectively managing inventory across its complex supply chain remain critical ongoing challenges.

Under Armour, Inc. (UA) How It Makes Money

Under Armour generates revenue primarily through the design, marketing, and distribution of branded performance apparel, footwear, and accessories. Its income stems from selling these products to consumers via wholesale partners and direct-to-consumer channels, including its own stores and e-commerce sites.

Under Armour, Inc. (UA)'s Revenue Breakdown

Based on fiscal year 2024 results, the company's revenue streams show a heavy reliance on apparel, though footwear remains a significant contributor.

Under Armour, Inc. (UA)'s Business Economics

The company operates on a model centered around performance and innovation, justifying a premium pricing strategy relative to some competitors. Its cost structure is heavily influenced by Cost of Goods Sold (COGS), which includes manufacturing and materials, and Selling, General & Administrative (SG&A) expenses covering marketing, distribution, and corporate overhead. Gross margins hovered around 45.8% in fiscal 2024, reflecting the balance between production costs and pricing power. Distribution is split between wholesale partnerships (58% of FY2024 revenue) and a growing Direct-to-Consumer (DTC) segment (40% of FY2024 revenue), which allows for higher margin capture but also requires significant investment in retail infrastructure and e-commerce platforms. Understanding the brand's core purpose can also provide context; delve deeper into the Mission Statement, Vision, & Core Values of Under Armour, Inc. (UA).

• Key cost drivers include raw materials, labor, shipping, and significant marketing spend to maintain brand visibility.
• The shift towards DTC aims to improve customer relationships and profit margins over time.
• Economic factors like consumer spending and input cost inflation directly impact profitability.

Under Armour, Inc. (UA)'s Financial Performance

Under Armour's financial health showed signs of pressure in fiscal year 2024, ending March 31, 2024. Total revenue declined by 3% year-over-year to $5.7 billion, driven by decreases in its core apparel, footwear, and accessories segments, particularly in North America. While the small licensing segment saw growth, it wasn't enough to offset declines elsewhere. Despite the revenue dip, the company maintained profitability, reporting an operating income of $235 million and net income of $232 million for the fiscal year. However, managing inventory levels and navigating a challenging retail environment remain key focus areas moving forward. The slight increase in DTC revenue offered a modest positive signal amid broader headwinds.

Under Armour, Inc. (UA) Market Position & Future Outlook

As of early 2025, the company is navigating a challenging athletic apparel and footwear market, focusing on revitalizing growth through brand elevation and product innovation, particularly in footwear. Its future outlook hinges on successfully executing its turnaround strategy amidst intense competition and evolving consumer demands.

Competitive Landscape

Opportunities & Challenges

Industry Position

Within the global sportswear industry, the company holds a position as a significant, albeit smaller, competitor compared to giants like Nike and Adidas. With reported revenues around $5.7 billion for the fiscal year ending March 2024, its scale is considerable but faces pressure in key markets like North America. The company's strategy entering 2025 focuses on reinforcing its identity rooted in athletic performance, enhancing product offerings, particularly footwear which has historically lagged, and optimizing its distribution mix with a greater emphasis on DTC channels. Successfully differentiating itself through innovation and reconnecting with its core performance-oriented consumer base are critical for improving its industry standing and profitability. Understanding the investment landscape can provide further context; Exploring Under Armour, Inc. (UA) Investor Profile: Who’s Buying and Why? offers insights into stakeholder perspectives.