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An Undervalued Global Athletic Brand With a Growing Moat

Under Armour's restructuring plans will create short-term choppiness but support long-term growth potential.

An Undervalued Global Athletic Brand With a Growing Moat
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Under Armour has evolved into a global athletic brand spanning performance apparel, footwear, and accessories, and we think its competitive advantage is strong and growing.

We assign the firm a narrow moat. The company possesses an intangible asset in a brand with a reputation for performance and innovation. We believe consumers will continue to pay a premium for the Under Armour label, and retailers will continue to support the brand for the traffic and margins it generates. Recent and ongoing sponsorship deals--including with Major League Baseball--give us high confidence that the Under Armour brand will be sought after for at least the next five to 10 years.

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R.J. Hottovy does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.