Under Armour is an American company that manufactures athletic apparel and footwear. It was founded in 1996 and has grown significantly over the years. Some of its strengths include a broad portfolio of products across apparel, footwear, and accessories. It also has multiple distribution networks and has seen strong revenue growth. However, it also faces threats such as increasing competition and potential supply chain disruptions from events like the Covid-19 pandemic.

1. UNDER ARMOUR
SWOT ANALYSIS

2. ABOUT UNDER ARMOUR
• Business Sector: Sports Goods
• Operating Geography: USA, North America
• Under Armour is a multinational American firm founded
in1996 by Kevin Plank
• Sells shoes, accessories & apparels
• HQ at Baltimore, Under Armour went public in 2005
• First branded retail store was opened in 2007 in Annapolis,
Maryland
• Acquisitions: MapMyFitness, Endomondo, MyFitnessPal, etc.
• Manufactures high quality fabric T-shirts that stayed dry and
fresh and absorbs sweat
• Mission: “To make all athletes better through passion,
design and the relentless pursuit of innovation”
• Vision: “To empower athletes everywhere”

3. ABOUT UNDER ARMOUR
Won the Gold award in “Best Press
Event” in 2018’s Ex-award for the
“Unlike” campaign where top 5
female athletes’ stories were
recited as poetry
As of 2020, Under Armour
has employed over 16,000
employees across its
facilities
Under
Armour’s
Revenues:
FY19: $5.30
billion
FY18: $5.19
billion
Year-on-
year
growth of
3%
Major Shareholders of Under
Armour as of April 2018
Wellington Management
Company (13.04%)
The Vanguard Group,
Inc (8.33%)
Harris Associates
(3.99%)
Bares Capital
Management (3.81%)
BlackRock Fund Advisors
(3.78%)

4. WHAT IS SWOT ANALYSIS?
• SWOT is an abbreviation of Strengths, Weakness,
Opportunity and Threat
• It includes analysis of internal and external factors that
may strategically affect the performance of an
organization, group or individual
• Strengths and Weaknesses are internal factors
• Opportunities and Threats are external factors

5. TODAY WE ARE
PRESENTING THE SWOT
ANALYSIS OF

6. UNDER ARMOUR SWOT
STRENGTHS
1. Broad product portfolio across apparel and
sportswear
2. Multiple distribution networks
3. Strong revenue growth over the years
4. Marketing and promotion strategy allowing
exposure to consumers
WEAKNESSES
1. Limited geographic diversification
2. Substantial portion of sales from large wholesale
customers
OPPORTUNITIES
1. Growing markets in Asia-Pacific region
2. Well-positioned to access fast growth industries
3. Popularity of e-commerce & m-commerce
4. Positive outlook in the US athletic footwear market
5. Women are significantly untapped segment in
activewear marketplace
6. Designing spacesuits in partnership with Virgin
Galactic
THREATS
1. Threat from increasing competition
2. Impact of rise in wages for Asian workers
3. Impact of Covid-19 and other pandemics on supply
chain

7. STRENGTHS
1. Broad product portfolio across apparel and
sportswear
• Initially offered variety of products in clothing but now
offer products across apparel, footwear, accessories, etc
• In 2019:
Represented
66% of net
revenues
Sales of
apparel
Represented 21%
of net revenues
Sales of
footwear
Represented 8% of
net revenues
Sales of
accessories
Represented
remaining 5% of
net revenues
Fitness
business

8. 1. Broad product portfolio across apparel and
sportswear
• Broad product spectrum minimizes risk of dependency
on one product
• Third-party companies along with product
development teams produce these products
• This helps in directing efforts in product development,
fit, climate and end use
STRENGTHS

9. 2. Multiple distribution networks
STRENGTHS
Under Armour’s distribution channels
1. Wholesale
•-National & regional
sporting goods chains
•-Independent & specialty
retailers
•-Department store chains
•-Institutional athletic dept
•-Leagues & Teams
•-Revenue generated in
FY19 = 60% of net revenues
2. Through brand and
factory house outlets
-Revenue generated in
FY19 =34% of net
revenues
3. Via e-commerce
websites
-Revenue generated in
FY19 =3% of net
revenues
4. Licensing and
Connected Fitness
channels
-In countries where
Under Armour does not
have operations, they
sell through licensing
-Revenue generated in
FY19 =33% of net
revenues

10. 3. Strong revenue growth over the years
• Reported strong growth and impressive investor
returns over the past few years
• Revenues increased twice from $2.3 billion to $5.3
billion in just 6 years
• Under Armour is planning to restructure to ensure
continuous growth and streamline operations
• Integrated global model will lead to shared
accountability between categories, regions & functions
• FY20 revenue will be impacted by Covid-19
• To further improve profitability, Under Armour is
assessing a potential restructuring initiative to
rebalance its cost base
STRENGTHS

11. 4. Marketing and promotion strategy allowing
exposure to consumers
• Mainly promotes products by making them accessible
to high-performing athletes, professional teams and
educational institutes
• Initiates outfitting agreements, professional, club, and
collegiate sponsorship, individual athlete and influencer
agreements enabling them to sell directly to athletes
and team equipment managers.
• This highlights their products on mass media channels
and helps Under Armour to achieve authenticity
• It is an official supplier of footwear & gloves to NFL
• Partnership with NBA further helps them in marketing
STRENGTHS

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ANALYSIS REPORT OF UNDER ARMOUR
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armour/
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