UNDER ARMOUR, INC

Under Armour, Inc. is an American company that manufactures footwear, sports, and casual apparel. Under Armour’s global headquarters are located in Baltimore, Maryland with additional offices located across Europe and Asia.

The company has a history dating back to 1996 when it was founded by Kevin Plank from his grandmother’s basement.

The brand began to gain attention when a front-page photo of USA Today featured Oakland Raiders quarterback Jeff George wearing an Under Armour mock turtleneck.

Following that front page, Under Armour’s first major sale came, when an equipment manager from Georgia Tech requested 10 shirts from Plank. This deal opened the door to a contract with NC State, Arizona State, and other Division I football teams.

With positive reviews from players, word began to spread and orders began to increase. That same year, Under Armour expanded its portfolio when it launched several new apparel lines including ColdGear, TurfGear, AllseasonGear, and StreetGear.

By the end of 1996, Under Armour had sold 500 Under Armour HeatGear shirts, generating $17,000 for the company.

In 1997, Plank had $100,000 in orders to fill and found a factory in Ohio to make the shirts.

Under Armour received its first big break in 1999 when Warner Brothers contacted the company to outfit two of its feature films, Oliver Stone’s Any Given Sunday and The Replacements.

Leveraging the release of Any Given Sunday, Plank purchased an ad in ESPN The Magazine. The ad generated close to $ 750 000 in sales.

The following year, Under Armour became the outfitter of the new XFL football league, gaining even more attention during the league’s debut on national television.

In 2003, consumer sector focused private equity firm Rosewood Capital invested $12 million into the company. The same year, the company launched its first television commercial.

The company IPO’d on the NASDAQ in November 2005, raising $ 153 million of capital in late 2007, and opened its first full-line full-price retail location at the Westfield Annapolis mall in Annapolis, Maryland.

In February 2015 Under Armour announced it had purchased the calorie and nutrition counting app maker MyFitnessPal for $ 475 million, as well as the fitness app maker Endomondo for US$ 85 000 00.

Today, Under Armour has grown into a multibillion-dollar brand made, sold, and worn worldwide.

Under Armour, Inc.’s primary business consists of the development, marketing, and distribution of branded performance apparel, footwear, and accessories for all age groups, and for men, women, and children.

The firm’s moisture-wicking technology provides a performance alternative to traditional products. United Armour, or UA, customers are athletes for the most part. UA products are also targeted at the sportswear market and persons with active lifestyles.

The company designs and develops non-traditional performance fabrics. These are merchandised on the basis of gear lines and marketed across the sporting goods outdoor and active lifestyle markets.

Several licensees develop apparel and accessories products for Under Armour, in collaboration with the firm’s product, marketing, and sales teams that each play an active role in the design process. This collaboration helps control brand and product consistency. These products include socks, team uniforms, baby and kids’ apparel, eyewear, and inflatable footballs and basketballs.

Using third party manufacturers allows the firm to concentrate on developing new products that will meet the needs of a changing market.

Under Armour is part of the S&P 500 Index and is included in the holdings of ETFs tracking the Index such as the iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY).

The firm’s products are consumer discretionary items, which means they’re not essential, but rather aspirational products. Consumers would like to purchase them, personal finances permitting.

Under Armour, Inc. trades on the New York Stock Exchange (NYSE) where investors can buy shares under the stock symbol – UAA

Data from the company’s 2025 financial analysis of its fiscal first quarter results shows that since mid-March, as the pandemic accelerated dramatically in North America and EMEA and retail store closures ensued, the company experienced a significant decline in revenue across all markets.

Revenue was down 23 percent to $ 930 million (down 22 percent currency neutral) with approximately 15 percentage points of the decline related to COVID-19 pandemic impacts in the quarter.

Wholesale revenue decreased 28 percent to $ 592 million and direct-to-consumer revenue was down 14 percent to $ 284 million, representing 31 percent of total revenue.

North America revenue decreased 28 percent to $ 609 million and revenue from the company’s international business decreased 12 percent to $ 287 million (down 11 percent currency neutral), representing 31 percent of total revenue.

Within the international business, revenue increased 3 percent in EMEA (up 4 percent currency neutral), decreased 34 percent in Asia-Pacific (down 32 percent currency neutral), and increased 8 percent in Latin America (up 11 percent currency neutral).

Apparel revenue decreased 23 percent to $598 million. Footwear revenue decreased 28 percent to $210 million. Accessories revenue decreased 17 percent to $68 million.

In response to this, the company is expecting to reduce its originally planned 2025 operating expenses by approximately $ 325 million through various initiatives.

Given ongoing uncertainty and pressures in global markets, the company moved quickly to prioritize liquidity, cash preservation, and inventory management to enhance its ability to navigate potential short and mid-term challenges.

With the company renegotiating payment contracts with some of its biggest athletes, the situation does not look good for the company which has so far not managed to deliver the resilient performance of some of its rivals, such as Nike. This is most likely due to the fact that Under Armour does not have the brand consideration or compelling product assortment necessary to reaccelerate sales post the current crisis.

Elevated inventory levels should pressure gross margin for the balance of the year and stymie Under Armour’s ability to introduce new product. The pandemic amplifies certain challenges that can impact the brand for the medium- to long-term, including being able to drive full-price sales.

In the end, Under Armour came into FY2020 with weak positioning (including pre-coronavirus) and the pandemic appears likely to extend brand challenges and limit recovery versus its peers.

Revenue pressure will likely drive a net income loss further in 2025, and channel partner bankruptcy risk could further delay a return to profitable growth.

To turn constructive again beyond the COVID-19 disruptions, the company would need stabilization in the channel landscape, visibility to normalization of inventories in the category and tangible evidence of consumer appetite for new styles.

As such, the company’s poor performance will likely not spell healthy dividends or a rising share price for investors who choose to purchase shares today, creating a weak buy-in in 2025.

Consumer Discretionary

Apparel and Textile Products

Apparel, Footwear and Accessory Design

1. Click on the BUY THIS SHARE button.
2. Complete the registration form with the required information and submit documentation to verify your proof of Identity along with your proof of address.
3. As soon as your account application has been reviewed and approved, you can select your trading platform from AvaTrade’s website, or by visiting the MetaTrader 4 or MetaTrader 5 websites respectively to start download.
4. Once you have downloaded the trading platform of your choice, you can use your AvaTrade live account details to log into your AvaTrade account on the trading platform.
5. From the Market Watch screen on both MetaTrader 4 and MetaTrader 5, you can select ‘Under Armour, Inc’ to buy/purchase shares.
6. Alternatively, you can make use of AvaTrade’s online Web Trader or the AvaTradeGo mobile application.

Buying shares has never been this convenient and easy. #myfirstshare

View more global shares for sale – here.

• Leverage of up to 1:20
• Being able to trade stocks on the NYSE, NASDAQ, FTSE, and various others.
• Indices, stocks, and commodities can all be traded form a single screen.
• Client support is presented live in a multitude of languages.
• Traders have exclusive access to a variety of educational tools
• Trades can be executed across multiple platforms

More shares that can be purchased / traded through AvaTrade, can be viewed here.

• Can I buy Under Armour, Inc shares in South Africa?
  Yes, you can.

• How to buy Under Armour, Inc shares
  By simply opening a free account on SA Shares, or by clicking the “Buy this Share” button to get started.

• What is the current share price?
  By clicking on the link provided above, you can view the real-time Under Armour, Inc share price on the platform.

• Is Under Armour, Inc a good share to buy?
  No, Under Armour, Inc. has reported a poor performance amidst the ongoing coronavirus pandemic, after already entering the year on a weak foot and declining revenues in 2019.
  As such, the company’s brand portfolio and lack of compelling marketing have not allowed it to weather the current economic crisis as well as its industry peers, while analysts predict that ongoing and inherent weaknesses in the company’s offering would likely not allow it to bounce back as quickly after the crisis.

• Can I buy Under Armour, Inc CFD through SA Shares?
  Yes, you can.