Under Armour’s Comeback Depends on Return to Performance Sports Roots

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 sales in the region have barely grown over the past decade owing to challenges from established competitors and new entrants. CEO Kevin Plank has been focused on developing technical products for athletes (primarily aged 16-24) to improve results, but tangible signs of progress have been elusive.