Under Armour, Inc. (UA): History, Ownership, Mission, How It Works & Makes Money

How does Under Armour, Inc. (UA), the brand built on moisture-wicking apparel, navigate a hyper-competitive market while undergoing a massive strategic reset? Despite a revenue decline of 9% to approximately $5.2 billion for the full fiscal year 2025, the company is doubling down on its core mission-to make all athletes better through innovation-by improving its gross margin by 180 basis points to 47.9%. You need to understand the current operational reality, which includes a GAAP net loss of $201 million, plus the near-term risk of its November 2025 decision to separate the high-profile Curry Brand, so let's dig into the history and business model that will dictate if this turnaround works.

Under Armour, Inc. (UA) History

You want the facts on Under Armour, Inc.'s origins and trajectory, especially as the company navigates a critical inflection point in 2025. The direct takeaway is this: Under Armour started from a simple, innovative product idea-a moisture-wicking shirt-and grew through aggressive sports marketing, but it's currently undergoing a major brand and financial restructuring to reverse a recent revenue decline, with its full-year fiscal 2025 revenue figures showing a clear need for change.

Given Company's Founding Timeline

Year established

Under Armour was established in 1996.

Original location

The company started in founder Kevin Plank's grandmother's basement in Washington, D.C., before relocating its headquarters to Baltimore, Maryland, by 1998.

Founding team members

The company was founded by Kevin Plank, a former special teams captain for the University of Maryland football team. Early support came from former teammates who helped test the product.

Initial capital/funding

Plank launched the venture with approximately $17,000 from his personal savings, plus he maxed out his credit cards, accumulating debt that reached about $40,000 to get the initial product to market.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The company's history is a series of bold, transformative bets, starting with the initial product innovation that challenged the status quo of cotton athletic wear. That first moisture-wicking compression T-shirt fundamentally changed how athletes dressed for performance.

A second major shift came with the aggressive push into digital health, or Connected Fitness, starting around 2013. Under Armour invested over $700 million to build the world's largest digital fitness community by acquiring apps like MapMyFitness and MyFitnessPal. But honestly, the strategy didn't deliver the expected returns, so the company later sold the MyFitnessPal business for $345 million to focus back on its core product categories.

• The Plank Return and Restructuring: Founder Kevin Plank returned as President and CEO in April 2024, a critical leadership change aimed at driving a turnaround.
• Fiscal 2025 Reset: The company announced a major restructuring plan in fiscal 2025 to improve operational efficiencies. This resulted in a GAAP operating loss of $72 million for the full year, with adjusted operating loss at $36 million.
• Product Refocus: Management is banking on a significantly strengthened product lineup anticipated to arrive in Fall 2025, supported by a renewed focus on its 'underdog' brand positioning and disciplined marketplace management.

To be fair, the restructuring is a necessary, painful step to stabilize the business. You can dive deeper into the current financial health and the specifics of this turnaround in Breaking Down Under Armour, Inc. (UA) Financial Health: Key Insights for Investors.

Under Armour, Inc. (UA) Ownership Structure

Under Armour, Inc. is a publicly traded company on the New York Stock Exchange (NYSE) under the ticker symbols UAA (Class A) and UA (Class C), but its governance structure is heavily influenced by a dual-class share system.

This structure gives founder Kevin Plank disproportionate voting power, meaning that while institutional and retail investors own the majority of the economic value, Plank maintains control over strategic decisions and the Board of Directors, a key point for any investor to defintely grasp.

Under Armour's Current Status

The company operates as a public entity, but the two-tier stock structure-Class A (UAA) shares carry one vote per share, while Class B shares (not publicly traded) carry ten votes per share-concentrates control.

This is a common founder-protection mechanism, ensuring the original vision is maintained even as the company raises capital from the public market.

For the fiscal year ended March 31, 2025, the company reported a total revenue of $5.2 billion, reflecting a 9% decrease as the brand works through a strategic reset focused on elevating product and tightening distribution.

Under Armour's Ownership Breakdown

The ownership of the publicly traded shares is distributed among a mix of insiders, large institutional funds (like BlackRock and Vanguard Group Inc.), and individual retail investors. This breakdown, based on the Class C shares (UA), illustrates the distribution of economic interest as of late 2025.

What this estimate hides is the true power dynamic: Kevin Plank's Class B shares, while not fully reflected in the simple Class C ownership percentage, give him majority voting control, which is the ultimate determinant of the company's direction.

Under Armour's Leadership

The company is steered by a leadership team focused on a strategic reset, prioritizing brand elevation and operational efficiency. The executive suite is currently undergoing a significant transition in its financial leadership, which is a critical near-term action point for the market.

• President and Chief Executive Officer (CEO): Kevin Plank, the company's founder, returned to the CEO role in April 2024 to directly oversee the brand's turnaround.
• Non-Executive Chair of the Board: Dr. Mohamed A. El-Erian, a renowned economist and independent director, provides strategic oversight to the board.
• Chief Financial Officer (CFO): David Bergman is the current CFO as of November 2025, but the company announced a transition where Reza Taleghani will succeed him in February 2026, marking a significant change in the finance function.
• President of the Americas: Kara Trent, who previously led the EMEA region, is a key leader driving the critical North America market.

The leadership's immediate focus is on executing the restructuring plan, which involves charges anticipated to range from $140 million to $160 million, to simplify the business and drive sustainable growth. You can find more on the company's long-term goals here: Mission Statement, Vision, & Core Values of Under Armour, Inc. (UA).

Under Armour, Inc. (UA) Mission and Values

Under Armour, Inc.'s core purpose goes beyond selling gear; it's about a cultural commitment to elevating human performance, which is reflected in its mission to make athletes better and its vision to inspire with performance solutions. This philosophical foundation drives every product and strategic decision, even as the company navigates a challenging fiscal 2025 with reported revenue of approximately $5.2 billion, a 9% decrease from the prior year.

Under Armour, Inc.'s Core Purpose

The company's cultural DNA is built on an underdog mentality and a relentless focus on the athlete. Their purpose is clearly defined: to empower those who strive for more. This isn't just marketing; it's the filter for their product pipeline and their expected adjusted operating income of $165 million to $185 million for the remainder of fiscal 2025.

Official Mission Statement

The formal mission statement is a detailed roadmap for their product-first strategy. It tells you exactly how they plan to achieve their goal of enhancing athletic capability, focusing on three key drivers.

• To make all athletes better through passion, design, and the relentless pursuit of innovation.

Honestly, this is the company's commitment to continuous performance enhancement (innovation), backed by a deep emotional connection to sport (passion), and a focus on aesthetics and function (design). It's a defintely clear mandate for the product development teams.

Vision Statement

The vision statement sets the long-term aspiration-what the brand wants to be in the athlete's life. It's about creating an indispensable relationship with the customer, moving beyond just apparel to becoming a necessity.

• To inspire you with performance solutions you never knew you needed and can't imagine living without.

This vision is a powerful challenge to their research and development (R&D) teams: don't just iterate, invent something revolutionary. You can explore more about this guiding philosophy at Mission Statement, Vision, & Core Values of Under Armour, Inc. (UA).

Under Armour, Inc. Core Values

These values are the rallying cries that define the internal culture and guide external actions, especially in areas like sustainability and social impact. They are the non-negotiable beliefs that connect every employee.

• Love Athletes: Put the focused performer at the center of everything. This includes the mandate to 'Create Fearlessly' by taking bold, smart risks.
• Celebrate the Wins: Recognize accomplishments, big and small, to build team strength and morale.
• Stand for Equality: Use sport as a unifier, speaking up for fairness and equity in the communities they represent.
• Act Sustainably: Work ethically and efficiently, reusing Earth's resources to perfect performance.
• Fight On Together: Build strength by tackling adversity with an enterprise mindset and integrity.

Under Armour, Inc. Slogan/Tagline

While the company runs specific campaign taglines like the recent 'We Are Football,' their most enduring and concise statement of purpose is simple and direct. It's the ultimate promise to the customer.

• Under Armour Makes You Better.

It's a clear, actionable promise that cuts straight to the benefit. That's the core value proposition in three words.

Under Armour, Inc. (UA) How It Works

Under Armour, Inc. operates by designing and distributing performance-driven athletic apparel, footwear, and accessories globally, focusing on innovative, technical products that enhance athlete performance. The company generates revenue primarily through wholesale channels to retailers and its own direct-to-consumer (DTC) sales, which includes its e-commerce platform and Brand/Factory House stores.

Under Armour, Inc.'s Product/Service Portfolio

In fiscal year 2025 (FY2025), the product mix showed that Apparel was the core, representing about 67% of net revenues, with Footwear at 23% and Accessories at 8%. We're seeing a push toward premium products and a tighter assortment to regain pricing power.

Under Armour, Inc.'s Operational Framework

The company is currently in a strategic reset, shifting from an inventory-led model to a demand-led one, which is defintely a smarter move for margins. This involves a major overhaul of its supply chain and product creation engine to drive operational discipline.

• Supply Chain Streamlining: A multi-year distribution logistics initiative is underway to modernize the supply chain, aiming for better end-to-end planning and cross-channel capabilities. This includes the costly decision to exit a major distribution facility in Rialto, California, by March 2026.
• Category-Centric Management: Operations are now aligned around key categories like Training, Team Sports, Basketball, Golf, and Running to improve accountability and accelerate decision-making. This helps them focus on 'better and best' level products over 'good' ones.
• Wholesale and DTC Channels: Sales are generated through wholesale partners and a direct-to-consumer (DTC) network. Wholesale revenue in Q4 FY2025 was $768 million, while DTC revenue was $386 million, with e-commerce sales down 27% due to planned reductions in promotional activity. The goal is to enhance the DTC experience for higher full-price sales.
• Financial Discipline: The focus on reduced discounting and lower product/freight costs drove a significant increase in the full-year gross margin to 47.9% in FY2025. This is the clearest financial indicator of brand health.

To understand the financial implications of this turnaround, you should be Exploring Under Armour, Inc. (UA) Investor Profile: Who's Buying and Why?

Under Armour, Inc.'s Strategic Advantages

Under Armour's success hinges on its founding identity: a relentless focus on technical performance gear, but still, they need to execute better on the 'storytelling' aspect. The strategic advantages are clear, but execution remains the key risk.

• Performance Innovation Heritage: The brand is built on revolutionary moisture-wicking technology (HeatGear), giving it a credible position with serious athletes and a strong image of high-quality products.
• Geographic Momentum: While North America revenue declined by 11% in FY2025, the EMEA (Europe, Middle East, and Africa) region proved to be the strongest-performing international segment, providing a crucial growth engine outside the core US market.
• Brand Recognition and Partnerships: Strong global brand recognition, especially in North America, is amplified by strategic partnerships with top athletes and teams, showcasing products on major stages. This athlete endorsement model is a core part of their marketing.
• Refined Marketplace Management: The current strategy involves tightening distribution and reducing the number of stock-keeping units (SKUs) to enhance the brand's premium perception and drive higher full-price sales, which is critical for margin expansion.

Under Armour, Inc. (UA) How It Makes Money

Under Armour, Inc. primarily makes money by designing, marketing, and selling high-performance athletic apparel, footwear, and accessories. The core of its revenue engine is the sale of its products through two main distribution channels: the traditional wholesale model to retailers and its own direct-to-consumer (DTC) channels like Brand House stores and e-commerce.

Under Armour's Revenue Breakdown

For the full fiscal year 2025, Under Armour's total revenue was approximately $5.2 billion, a 9% decline from the prior year, as the company continued its strategic reset to focus on brand elevation and disciplined distribution.

Business Economics

The company's financial health in 2025 reflects a strategic trade-off: sacrificing near-term revenue for long-term margin improvement and brand equity. The big picture is that they are actively pulling back on heavy discounting and tightening their distribution, which is why sales are down, but profitability metrics are improving.

Here's the quick math on their distribution mix: Wholesale revenue, which is selling to external retailers like Dick's Sporting Goods, accounted for the largest share at $3.0 billion (about 57.7% of total revenue) but fell 8% year-over-year. The Direct-to-Consumer (DTC) channel, which includes their own stores and e-commerce, generated $2.1 billion (about 40.4% of total revenue) and declined 11%. That DTC decline is defintely a result of planned reductions in promotional activities, especially in e-commerce, but it's a necessary step to stop the brand from being seen as a discount option.

Their pricing strategy is moving toward 'premiumization,' which means higher average selling prices (ASPs) and less reliance on clearance sales. This shift, combined with supply chain benefits like lower freight and product costs, drove the full-year gross margin up by 180 basis points to 47.9%. That's a strong signal of pricing power, even as volumes drop. You want that higher gross margin, but you still need to sell enough product.

For a deeper dive into their brand strategy, you should look at their Mission Statement, Vision, & Core Values of Under Armour, Inc. (UA).

Under Armour's Financial Performance

Fiscal year 2025 showed a mixed financial picture, with significant non-recurring charges masking underlying improvements in operational efficiency. The company reported a GAAP operating loss of $185 million and a GAAP net loss of $201 million.

• Gross Margin: The full-year gross margin improved to 47.9%, up from the previous year, primarily due to reduced discounting in the DTC channel and lower supply chain costs. This is the most positive operational trend.
• Adjusted Operating Income: Excluding significant one-time expenses, such as litigation settlement costs and restructuring charges related to the Fiscal 2025 Restructuring Program, the adjusted operating income was a positive $198 million. This shows the core business, without the noise, is profitable.
• Inventory Management: Inventory levels were managed down, reflecting improved inventory health and a more disciplined approach to product buys. For the fourth quarter of FY2025, inventory was down 1% to $946 million.
• Cash Position: The company maintained a solid liquidity position, ending the fiscal year with $501 million in cash and cash equivalents and no outstanding borrowings on its $1.1 billion revolving credit facility.

What this estimate hides is the true cost of the strategic reset. The $198 million in adjusted operating income is the number to watch, but the GAAP loss of $201 million is what hit the bottom line, reflecting real cash and non-cash costs tied to fixing the business. The restructuring plan, which includes charges between $140 million and $160 million, is a necessary investment in future profitability.

Under Armour, Inc. (UA) Market Position & Future Outlook

Under Armour is in the middle of a critical brand reset in late 2025, moving away from mass-market discounting to focus on premium, performance-driven athletic wear. This strategic shift resulted in a reported fiscal year 2025 (FY25) revenue decline of $5.16 billion, a 9% drop from the prior year, and a significant net loss of $201.27 million as the company absorbed restructuring costs and tightened distribution.

The company's future trajectory hinges on the successful execution of its four-pillar strategy-Product, Story, Service, and Team-aiming to reignite brand relevance and achieve sustainable, profitable growth, even if that means short-term revenue contraction.

Competitive Landscape

While Under Armour remains a major player in the US, it is significantly smaller than its primary global rivals, a gap clearly illustrated by market capitalization and global apparel market share.

Opportunities & Challenges

The company is making tough, necessary decisions now, like expanding its restructuring plan and separating the Curry Brand, to set up a cleaner, more focused business for the next few years.

Industry Position

Under Armour holds a clear third-tier position in the global sportswear hierarchy, far behind the top two. As of mid-2025, its market capitalization of approximately $2.84 billion is dwarfed by Nike's $107.03 billion and Adidas's $43.42 billion.

• Focus on Performance: The brand's core strength remains its technical, high-performance apparel, especially in the training and running categories.
• North American Reliance: The business is still heavily reliant on the North American market, which saw a 14% revenue decline in Q1 FY25, highlighting the urgency of the brand reset there.
• Liquidity is Solid: Despite the net loss, the company ended Q2 FY25 with $531 million in cash and no borrowings on its revolving credit facility, giving it capital flexibility for the turnaround.

The company is defintely prioritizing a healthier business over top-line growth right now. If you want to dive deeper into who is betting on this turnaround, you should check out Exploring Under Armour, Inc. (UA) Investor Profile: Who's Buying and Why?