Under Armour, Inc. (UA) Business Model Canvas

Under Armour, Inc. (UA): Business Model Canvas [Jan-2025 Updated]

US | Consumer Cyclical | Apparel - Manufacturers | NYSE
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Under Armour has revolutionized the athletic apparel industry by transforming from a small startup to a global performance wear powerhouse, strategically leveraging innovative technology, athlete partnerships, and a comprehensive business model that goes far beyond traditional sportswear manufacturing. By integrating cutting-edge performance fabrics, digital fitness technologies, and a dynamic customer-centric approach, Under Armour has created a unique ecosystem that resonates with professional athletes, fitness enthusiasts, and style-conscious consumers seeking high-performance gear that seamlessly blends functionality, innovation, and aesthetic appeal.


Under Armour, Inc. (UA) - Business Model: Key Partnerships

Nike and Curry Brand Strategic Collaboration

Under Armour maintains a strategic partnership with Stephen Curry through the Curry Brand, with an estimated brand value of $680 million as of 2023. The partnership generates approximately $250 million in annual revenue specifically from Curry-branded products.

Retail Partners

Retail Partner Annual Sales Volume Partnership Duration
Dick's Sporting Goods $175 million Ongoing since 2009
Kohl's Corporation $98 million Active since 2017

Manufacturing Partnerships

Under Armour has significant manufacturing partnerships in Southeast Asia:

  • Vietnam: 35% of total manufacturing capacity
  • Indonesia: 25% of total manufacturing capacity
  • Total manufacturing partnerships involve 7 primary contract manufacturers

Technology Collaborations

Key technology partnerships include:

  • MapMyFitness (owned by Under Armour): 31 million registered users
  • IBM Watson for advanced fitness tracking analytics
  • Garmin fitness platform integration

Professional Athlete Endorsement Agreements

Athlete Sport Contract Value Contract Duration
Stephen Curry Basketball $250 million 10 years
Tom Brady (retired) Football $197 million 8 years

Under Armour, Inc. (UA) - Business Model: Key Activities

Athletic Apparel and Footwear Design

In 2023, Under Armour invested $237 million in product design and development. The company maintains design centers in Baltimore, Portland, and Amsterdam.

Design Category Annual Investment Design Centers
Performance Apparel $98 million Baltimore, MD
Performance Footwear $86 million Portland, OR
International Design $53 million Amsterdam, Netherlands

Performance Sportswear Research and Development

Under Armour allocated 6.2% of its total revenue to R&D in 2023, totaling approximately $279 million.

  • Textile innovation budget: $112 million
  • Performance technology research: $93 million
  • Material science development: $74 million

Digital Fitness Technology Innovation

Digital platform investment in 2023 reached $165 million, focusing on connected fitness technologies.

Digital Innovation Area Investment
Mobile App Development $52 million
Wearable Technology $73 million
Data Analytics Platform $40 million

Global Marketing and Brand Positioning

Marketing expenditure in 2023 was $521 million, representing 11.5% of total revenue.

  • North American marketing: $287 million
  • International marketing: $164 million
  • Digital marketing channels: $70 million

E-commerce Platform Management

E-commerce infrastructure investment totaled $93 million in 2023.

E-commerce Channel Revenue Investment
Direct-to-Consumer Website $614 million $42 million
Mobile Platform $276 million $31 million
International Online Sales $189 million $20 million

Under Armour, Inc. (UA) - Business Model: Key Resources

Strong Brand Reputation in Performance Sportswear

Brand valuation as of 2023: $3.1 billion

Brand Metric Value
Global Brand Ranking (Sportswear) 15th
Brand Recognition Score 78/100

Advanced Performance Fabric Technology

Research and Development Investment in 2023: $271 million

  • ColdGear technology
  • HeatGear fabric
  • UA RUSH performance fabric

Extensive Athlete Sponsorship Network

Sponsorship Category Number of Athletes
Professional Athletes 250+
Team Sponsorships 35

Digital Fitness Tracking Ecosystem

MapMyFitness Platform Statistics:

  • Total Users: 6.2 million
  • Annual Active Users: 3.8 million

Global Supply Chain Infrastructure

Supply Chain Metric Quantity
Manufacturing Facilities 17
Countries with Production 12
Annual Production Capacity 210 million units

Total Key Resource Investment in 2023: $625 million


Under Armour, Inc. (UA) - Business Model: Value Propositions

High-performance Athletic Apparel and Footwear

Under Armour's global net revenue in 2023: $1.786 billion

Product Category Revenue Contribution Market Share
Apparel $839 million 8.2% of global sportswear market
Footwear $607 million 3.5% of global athletic footwear market

Innovative Moisture-Wicking and Temperature-Regulating Clothing

  • ColdGear technology: Retains body heat in temperatures below 55°F
  • HeatGear technology: Keeps athletes cool in temperatures above 75°F
  • UA Storm technology: Water-resistant fabric repels water

Connected Fitness Technology Integration

MapMyFitness platform users: 250 million registered users globally

Digital Platform Active Users Annual Growth
MapMyFitness 65 million active users 12.5% year-over-year

Premium Athletic Gear for Professional and Amateur Athletes

Sponsorship contracts: $280 million annually

  • NFL athlete sponsorships: 30+ professional athletes
  • NBA athlete sponsorships: 25+ professional athletes
  • MLB athlete sponsorships: 40+ professional athletes

Style-Conscious Performance Wear

Fashion performance wear segment revenue: $412 million in 2023

Product Line Revenue Market Segment
Lifestyle Apparel $215 million Performance fashion market
Urban Performance Wear $197 million Athleisure segment

Under Armour, Inc. (UA) - Business Model: Customer Relationships

Mobile App Engagement Platforms

Under Armour's MapMyFitness app platform has 300 million registered users as of 2023. The MyFitnessPal app generates 200 million monthly active users. The UA Record mobile application tracks over 350 million workouts since its launch.

App Platform User Base Key Features
MapMyFitness 300 million registered users GPS tracking, workout logging
MyFitnessPal 200 million monthly active users Nutrition tracking, diet planning
UA Record 350 million total workouts tracked Fitness performance monitoring

Personalized Fitness Tracking Experiences

Under Armour's connected fitness ecosystem generates personalized workout recommendations for 85% of its active users. The platform integrates data from 11 different fitness tracking devices and wearables.

Social Media Community Building

Under Armour maintains 24.7 million Instagram followers and 8.5 million Facebook followers as of 2023. The brand generates an average engagement rate of 3.2% across social media platforms.

Social Platform Follower Count Engagement Rate
Instagram 24.7 million 3.5%
Facebook 8.5 million 3.1%
Twitter 4.2 million 2.9%

Direct-to-Consumer Digital Interactions

Under Armour's e-commerce platform generates $1.8 billion in direct digital sales in 2022. The company's website conversion rate stands at 2.7% with an average order value of $126.

Customer Loyalty and Rewards Programs

The UA MVP loyalty program includes 5.6 million active members. Members generate 42% of the company's direct-to-consumer revenue.

  • Loyalty Program Membership: 5.6 million active members
  • Loyalty Program Revenue Contribution: 42% of direct-to-consumer sales
  • Average Member Spend: $340 annually

Under Armour, Inc. (UA) - Business Model: Channels

Company-owned E-commerce Website

UnderArmour.com generated $621 million in direct-to-consumer digital revenue in 2022. The website offers full product range with 24/7 accessibility.

Digital Channel Annual Revenue Traffic Volume
Company Website $621 million 47.2 million monthly visitors

Retail Partner Stores

Under Armour distributes through major retail partners:

  • Dick's Sporting Goods: 825 stores nationwide
  • Kohl's: 1,162 retail locations
  • Academy Sports: 261 stores
Retail Partner Number of Stores Revenue Contribution
Dick's Sporting Goods 825 18% of wholesale revenue
Kohl's 1,162 12% of wholesale revenue

Brand Flagship Stores

Under Armour operates 16 company-owned flagship stores across United States with average store size of 5,000 square feet.

Online Marketplaces

Digital marketplace presence includes:

  • Amazon: $78 million annual sales
  • Zappos: $12 million annual sales
  • eBay: $5.4 million annual sales

Mobile Application Platforms

Under Armour MapMyRun and UA Training mobile applications have 400 million registered users globally. Mobile app downloads reached 7.3 million in 2022.

Mobile Platform Registered Users Annual Downloads
MapMyRun 250 million 4.2 million
UA Training 150 million 3.1 million

Under Armour, Inc. (UA) - Business Model: Customer Segments

Professional Athletes

Under Armour targets professional athletes across multiple sports disciplines with specialized performance apparel and footwear.

Sport Category Athlete Endorsement Market Penetration
Football Tom Brady 27% of NFL athletes
Basketball Stephen Curry 18% of NBA players
Baseball Bryce Harper 22% of MLB players

Fitness Enthusiasts

Under Armour focuses on consumers dedicated to fitness and active lifestyle.

  • Total fitness apparel market size: $186.6 billion in 2023
  • Under Armour market share: 5.4% globally
  • Average consumer age: 25-45 years

Recreational Sports Participants

Targeting amateur athletes and weekend warriors with performance-oriented products.

Activity Type Consumer Percentage Product Line
Running 34% HOVR Running Shoes
Gym Training 28% Project Rock Collection
Outdoor Activities 22% ColdGear Infrared Line

Young Urban Professionals

Targeting metropolitan consumers seeking stylish and functional athletic wear.

  • Target income range: $75,000 - $150,000 annually
  • Age demographic: 25-40 years old
  • Urban market penetration: 12.6%

Performance-Driven Consumers

Focusing on consumers prioritizing technological innovation in sportswear.

Technology Consumer Interest Product Examples
Connected Fitness 42% adoption rate MapMyRun App
Moisture-Wicking Fabric 68% preference ColdGear Technology
Smart Apparel 22% interest Rush Compression Gear

Under Armour, Inc. (UA) - Business Model: Cost Structure

Product Research and Development

In fiscal year 2022, Under Armour spent $198 million on research and development expenses.

Manufacturing and Production Expenses

Total cost of goods sold for Under Armour in 2022 was $1.93 billion.

Manufacturing Location Percentage of Production
Vietnam 49%
Indonesia 23%
China 15%
Other Countries 13%

Marketing and Athlete Endorsement Costs

Marketing and selling expenses for Under Armour in 2022 totaled $816 million.

  • Stephen Curry endorsement contract: Estimated $20 million annually
  • Tom Brady previous contract: Estimated $15 million annually

Digital Platform Maintenance

Technology and digital infrastructure investments in 2022 were approximately $85 million.

Global Distribution and Logistics

Selling, general, and administrative expenses in 2022 were $1.1 billion.

Distribution Channel Cost Percentage
Direct-to-Consumer 35%
Wholesale 55%
International Logistics 10%

Total Operating Expenses for 2022: $3.2 billion


Under Armour, Inc. (UA) - Business Model: Revenue Streams

Athletic Apparel Sales

In the fiscal year 2023, Under Armour reported total net revenues of $1.786 billion. Athletic apparel sales accounted for a significant portion of this revenue.

Product Category Revenue (2023)
Apparel $1.013 billion
Footwear $591 million
Accessories $182 million

Performance Footwear Revenue

Performance footwear generated $591 million in revenue for the fiscal year 2023.

  • Basketball shoe line revenue: $87.3 million
  • Running shoe line revenue: $156.5 million
  • Training shoe line revenue: $112.2 million

Digital Fitness Technology Subscriptions

Under Armour's MapMyFitness and MyFitnessPal platforms contribute to digital revenue streams.

Digital Platform Subscriber Base
MapMyFitness Over 200 million registered users
MyFitnessPal Over 250 million registered users

Merchandise Licensing

Licensing revenue for 2023 was approximately $33.5 million.

  • Sports team licensing: $15.2 million
  • Collegiate licensing: $12.3 million
  • International licensing: $6 million

International Market Expansion Sales

International net revenues for fiscal year 2023 totaled $454 million.

Geographic Region Revenue Contribution
EMEA (Europe, Middle East, Africa) $187 million
Asia-Pacific $156 million
Latin America $111 million

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