Under Armour Lacks a Competitive Edge, but Association With Global Sports Provides Comeback Hope

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 company’s North American sales increased to $4 billion from $700 million, and it passed Adidas as the region’s second-largest athletic apparel brand after Nike. However, Under Armour’s North America sales have barely grown over the past decade due to challenges from established competitors and new entrants. CEO Kevin Plank intends to return the firm to its glory years as a performance sports pioneer, but tangible signs of progress have been elusive.