Under Armour Lacks a Competitive Advantage, but CEO Kevin Plank Hopes to Regain Relevance in Sports

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 firm’s North American sales increased to $4 billion from $700 million and it passed narrow-moat Adidas as the region’s second-largest athletic apparel brand (after wide-moat 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 returning the firm to its glory years as a performance sports pioneer, but he cautioned that sales in North America are likely to get worse before they get better.