Under Armour, Inc. (UA): Análisis PESTLE [Actualizado en enero de 2025]

En el mundo dinámico de la ropa deportiva, Under Armour se encuentra en una encrucijada crítica, navegando por un complejo panorama de desafíos globales y oportunidades transformadoras. Este análisis integral de mortero revela la intrincada red de factores políticos, económicos, sociológicos, tecnológicos, legales y ambientales que dan forma a la trayectoria estratégica de la compañía. Desde las tensiones comerciales y las preferencias de los consumidores en evolución hasta las innovaciones tecnológicas de vanguardia, Under Armour debe maniobrar hábilmente a través de un entorno empresarial multifacético que exige agilidad, sostenibilidad y un enfoque de pensamiento a futuro para seguir siendo competitivo en el mercado de desgaste atlético de alto riesgo.

Under Armor, Inc. (UA) - Análisis de mortero: factores políticos

Las tensiones comerciales de EE. UU. Con el impacto de China en los costos de fabricación e importación

En 2023, Under Armour se enfrentó 25% de aranceles sobre bienes importados de China. Las importaciones totales de la compañía de China representaban aproximadamente El 35% de su cadena de suministro de fabricación. Los costos arancelarios adicionales aumentaron los gastos de producción de la Compañía mediante un estimado $ 42.7 millones anuales.

Año	Impacto arancelario	Volumen de importación	Aumento de costos
2023	25%	35% de la cadena de suministro	$ 42.7 millones

Regulaciones laborales que afectan la cadena de suministro global

Under Armour opera instalaciones de fabricación en 12 países, con presencia significativa en:

• Vietnam (32% de la producción)
• Indonesia (25% de la producción)
• China (18% de la producción)
• Jordan (15% de la producción)

Incentivos de fabricación doméstica

El gobierno de los Estados Unidos Ley de reducción de inflación proporciona créditos fiscales hasta 30% para inversiones de fabricación nacional. Under Armour se ha cometido $ 15.2 millones para explorar posibles oportunidades de producción doméstica.

Inestabilidad política en los mercados internacionales

Los riesgos políticos en los mercados clave incluyen:

• Vietnam: cambios de regulación laboral que afectan el 32% de la producción
• Indonesia: aumentos potenciales de costos laborales de 12-15% anual
• China: riesgos de tensión comercial continuos

País	Factor de riesgo político	Impacto potencial
Vietnam	Cambios de regulación laboral	Interrupción de la producción
Indonesia	Aumentos de costos laborales	12-15% anual
Porcelana	Tensiones comerciales	Riesgos arancelarios

Under Armor, Inc. (UA) - Análisis de mortero: factores económicos

Incertidumbre económica continua que afecta el gasto discretario del consumidor

Los ingresos del cuarto trimestre de 2023 de Armor fueron de $ 453.4 millones, lo que representa una disminución del 2.7% del mismo período en 2022. El gasto discretario global del consumidor ha demostrado volatilidad, y la compañía experimenta desafíos en el mantenimiento de un crecimiento consistente de las ventas.

Año	Ingresos totales	Cambio año tras año
2022	$ 5.68 mil millones	+4.2%
2023	$ 5.42 mil millones	-4.6%

Los tipos de cambio de moneda fluctuantes impactaron los ingresos internacionales

Las fluctuaciones de divisas impactaron negativamente los ingresos internacionales de bajo armadura en aproximadamente $ 37.5 millones en 2023.

Región	2023 ingresos	Impacto en la moneda
Mercados internacionales	$ 1.16 mil millones	-3.2%
Región de EMEA	$ 458 millones	-2.8%

Aumento de la inflación aumentando la producción y los costos laborales

El costo de los bienes de bajo armadura vendidos (COGS) aumentó a $ 3.24 mil millones en 2023, lo que representa el 59.8% de los ingresos totales, en comparación con $ 3.39 mil millones en 2022.

Categoría de costos	Gasto 2022	2023 Gastos	Cambio porcentual
Materia prima	$ 1.87 mil millones	$ 1.72 mil millones	-8.0%
Costos laborales	$ 612 millones	$ 658 millones	+7.5%

Mercado de ropa deportiva competitiva con presión sobre estrategias de precios

El margen bruto de Under Armour fue del 47.3% en 2023, en comparación con el 49.4% en 2022, lo que refleja la intensa competencia del mercado y las presiones de precios.

Competidor	2023 ingresos	Cuota de mercado
Nike	$ 51.2 mil millones	27.4%
Adidas	$ 22.5 mil millones	12.0%
Bajo armadura	$ 5.42 mil millones	2.9%

Under Armor, Inc. (UA) - Análisis de mortero: factores sociales

Creciente preferencia del consumidor por ropa deportiva sostenible y ética

Según un informe de sostenibilidad de McKinsey 2023, el 66% de los consumidores consideran la sostenibilidad al comprar ropa deportiva. La línea de productos sostenible de Under Armour representaba el 24% de los ingresos totales en 2023, con $ 672 millones generados a partir de colecciones de ropa ecológica.

Métrica de sostenibilidad	2023 datos
Uso de materiales reciclados	38% de la composición total de tela
Ingresos de productos sostenibles	$ 672 millones
Preferencia de sostenibilidad del consumidor	66%

Aumento de la salud y la conciencia del fitness que impulsa la demanda de atletismo

El mercado mundial de athleisure alcanzó los $ 354.2 mil millones en 2023, con una tasa compuesta anual proyectada del 8,7%. Under Armour capturó el 5.2% de participación de mercado, generando $ 18.4 mil millones en ingresos relacionados con el atletismo.

Indicador del mercado de fitness	2023 estadísticas
Tamaño del mercado global de athleisure	$ 354.2 mil millones
Cuota de mercado de Under Armour	5.2%
Ingresos de athleisure	$ 18.4 mil millones

Cambiar hacia ropa atlética personalizada y basada en el rendimiento

Under Armour invirtió $ 287 millones en I + D para tecnologías de rendimiento en 2023. Las líneas de productos personalizadas representaron el 19% de las ventas totales, generando aproximadamente $ 535 millones en ingresos.

Métrico de personalización	2023 datos
Inversión de I + D	$ 287 millones
Ventas de productos personalizados	19% de las ventas totales
Ingresos de productos personalizados	$ 535 millones

Cambios demográficos que influyen en los patrones de consumo de desgaste atlético

Los consumidores de Millennial y Gen Z representaban el 62% de la base de clientes de Under Armour en 2023. Los canales de ventas digitales generaron $ 3.2 mil millones, lo que representa el 42% de los ingresos totales de la compañía.

Indicador demográfico	2023 estadísticas
Millennial/Gen Z Base de clientes	62%
Canales de ventas digitales	$ 3.2 mil millones
Porcentaje de ventas digitales	42%

Under Armor, Inc. (UA) - Análisis de mortero: factores tecnológicos

Tecnología de tela avanzada y materiales para mejorar el rendimiento

Under Armour invirtió $ 195.7 millones en investigación y desarrollo en 2022. Las innovadoras tecnologías de tela de la compañía incluyen:

Tecnología	Características de rendimiento	Año introducido
Cazador de frío	Tecnología de aislamiento térmico	2001
Asiento de calor	Tela liviana que absorbe la humedad	2003
UA Rush	Tecnología mineral de reflejo infrarrojo	2019

Inversión en plataformas digitales y capacidades de comercio electrónico

Los ingresos digitales para Under Armour alcanzaron los $ 668 millones en 2022, lo que representa el 28% de los ingresos totales. Las inversiones en la plataforma de comercio electrónico incluyen:

• Aplicación móvil con experiencia de compra personalizada
• Motor de recomendación con IA
• Tecnología de prueba virtual de realidad aumentada

Análisis de datos y desarrollo de productos personalizados

Métrico de análisis	Valor	Impacto
Puntos de datos recopilados por usuario	Más de 1.500	Personalización mejorada del producto
Algoritmos de aprendizaje automático	17 modelos activos	Análisis de tendencias predictivas

Integración de tecnología portátil emergente

Under Armour se asoció con MapMyfitness, que tiene 31 millones de usuarios registrados. Las inversiones en tecnología portátil incluyen:

• Integración de plataforma de fitness conectada
• Desarrollo de sensores de tela inteligente
• Tecnologías de seguimiento de rendimiento

Tecnología portátil	Funcionalidad	Etapa de desarrollo
UA Rush SmartBase	Seguimiento de rendimiento biométrico	Fase prototipo
Ropa de dormir de recuperación conectada	Monitoreo de métricas de recuperación	Mercado disponible

Under Armor, Inc. (UA) - Análisis de mortero: factores legales

Protección de propiedad intelectual para tecnologías de telas innovadoras

Under Armour se mantiene 87 patentes activas en tecnología de tela a partir de 2023. La cartera de patentes de la compañía está valorada en aproximadamente $ 42.5 millones.

Categoría de patente	Número de patentes	Valor estimado
Tecnologías de tela de rendimiento	53	$ 25.3 millones
Innovaciones de reducción de humedad	22	$ 12.7 millones
Regulación de la temperatura	12	$ 4.5 millones

Cumplimiento de las regulaciones comerciales internacionales

Under Armour opera en 38 países y enfrenta complejos requisitos de cumplimiento del comercio internacional. En 2023, la compañía gastó $ 6.2 millones sobre cumplimiento legal y regulatorio.

Región	Gasto de cumplimiento	Número de regulaciones comerciales
América del norte	$ 2.1 millones	47
Europa	$ 1.8 millones	62
Asia-Pacífico	$ 1.5 millones	55
Resto del mundo	$ 0.8 millones	33

Responsabilidad del producto y estándares de seguridad

Under Armour asigna $ 4.7 millones anualmente a las pruebas y cumplimiento de seguridad del producto. La empresa mantiene 99.8% Cumplimiento con estándares de seguridad internacionales.

Estándar de seguridad	Porcentaje de cumplimiento	Costo de prueba anual
Estándares internacionales ASTM	99.9%	$ 1.6 millones
Certificaciones de calidad ISO	99.7%	$ 1.9 millones
Seguridad del producto del consumidor	99.8%	$ 1.2 millones

Marcas y litigios de patentes

En 2023, Under Armour estuvo involucrado en 6 disputas de patentes en curso, con gastos legales totales alcanzando $ 3.9 millones.

Tipo de litigio	Número de casos	Gastos legales
Defensa de infracción de patentes	4	$ 2.5 millones
Protección de marca registrada	2	$ 1.4 millones

Under Armor, Inc. (UA) - Análisis de mortero: factores ambientales

Compromiso con prácticas de fabricación sostenible

Under Armour se comprometió a reducir las emisiones de gases de efecto invernadero en un 56% para 2030. La estrategia de sostenibilidad de la compañía se centra en reducir el alcance 1, 2 y 3 emisiones en las operaciones globales.

Métrica de sostenibilidad	2023 rendimiento	Objetivo 2030
Reducción de gases de efecto invernadero	Reducción del 25% lograda	56% de reducción total
Uso de energía renovable	32% de la energía total	Objetivo 100% renovable
Conservación del agua	18% de reducción de agua	Objetivo de reducción del 40%

Reducción de la huella de carbono en la producción de producción y suministro

Under Armour invirtió $ 15.3 millones en tecnologías de reducción de carbono en 2023. La compañía ha implementado una optimización de logística avanzada para reducir las emisiones de transporte en un 22% en todas las cadenas de suministro globales.

Iniciativa de reducción de carbono	Inversión	Impacto de emisión
Optimización logística	$ 7.6 millones	22% de reducción de emisiones de transporte
Eficiencia de fabricación	$ 5.2 millones	17% de reducción de emisiones de producción
Actualizaciones tecnológicas	$ 2.5 millones	Reducción general del 12% de la huella de carbono

Aumento del uso de materiales reciclados en líneas de productos

En 2023, Under Armour utilizó el 45% de poliéster reciclado en las líneas de productos. La compañía tiene como objetivo alcanzar el uso del 80% de uso de material reciclado para 2025.

Categoría de material	2023 contenido reciclado	Objetivo 2025
Poliéster	45%	80%
Nylon	35%	65%
Algodón	25%	50%

Creciente demanda de consumidores de marcas ambientalmente responsables

El 65% de la base de consumidores de Under Armour expresó preferencia por productos sostenibles en 2023. La compañía informó un aumento del 27% en las ventas de líneas de productos ecológicas.

Métrica de sostenibilidad del consumidor	2023 rendimiento
Los consumidores que prefieren productos sostenibles	65%
Crecimiento de ventas de la línea de productos ecológica	27%
Percepción de la marca ambiental	Calificación de 4.2/5

Under Armour, Inc. (UA) - PESTLE Analysis: Social factors

Maturing athleisure trend requires constant product innovation to maintain market share

You are operating in a massive, but increasingly crowded, athleisure market (athletic and leisure wear). The global market value is estimated to be around $472.71 billion in 2025, expanding at a CAGR of 9.50% through 2034. This isn't a niche trend anymore; it's a foundational shift in consumer dress, so product innovation is defintely critical.

Under Armour's core challenge is that its performance-first identity struggles to translate into the casual, fashion-driven side of athleisure dominated by Lululemon Athletica and Nike, Inc. The proof is in the numbers: Under Armour's total revenue for Fiscal Year 2025 (FY2025) fell 9% to $5.2 billion, while its core apparel revenue dropped 9% to $3.5 billion.

To fight this decline, the company is executing a strategic reset focused on product discipline. They cut approximately 25% of their product Stock Keeping Units (SKUs) by May 2024, aiming to focus resources on fewer, higher-impact products. A 'significantly strengthened product lineup' is expected in Fall 2025, which must deliver on both technical performance and everyday style to regain market momentum. It's a zero-sum game when the category matures.

Increasing consumer focus on health, wellness, and specific sports performance drives demand for specialized gear

The macro trend of prioritizing health and wellness is a strong tailwind for the entire industry. The global health and wellness market is projected to grow from $6.16 trillion in 2025 to nearly $10 trillion by 2034, meaning more people are buying gear for specific activities like yoga, running, and training.

This is where Under Armour's historical strength in technical, performance-focused gear-like its HeatGear® and ColdGear® lines-should give it an edge. The market is demanding specialized products, not just generic activewear. The company's recent focus on performance innovation, including its Curry Brand footwear and the Velociti Elite running shoe, is an attempt to capitalize on the high-end, specialized gear segment. However, the overall decline in footwear revenue by 13% to $1.2 billion in FY2025 shows that this performance-focus is not yet translating into widespread sales growth, especially in North America, where revenue dropped 11%.

Strong preference among Gen Z buyers for brands with clear, authentic social and environmental missions

Gen Z consumers, with a U.S. spending power of approximately $860 billion, are the most values-driven generation. They demand authenticity and transparency. This means a brand's mission is now as important as its product performance.

Here's the quick math on Gen Z's values:

• 73% are willing to pay more for sustainable products.
• 86% feel a personal responsibility to help solve global issues.
• 81% would boycott a brand perceived as 'macho' or inauthentic.

Under Armour is starting to address this. The acquisition of UNLESS Collective in August 2024 for $10.3 million, which focuses on zero-plastic, regenerative materials, is a concrete step to build environmental credibility. This move directly counters the perception of being a purely performance-driven, less-conscious brand and is crucial for connecting with this demographic's ethical consumerism (buying based on values). The brand must now amplify this mission authentically across platforms like TikTok, where Gen Z discovers products.

Demographic shifts show a growing market for women's athletic apparel, a key growth area for UA

The women's athletic apparel market is a significant growth engine, with the women's sports and swimwear revenue segment projected to hit $102 billion in 2025. Women's apparel already accounts for a major market share of 41% of the athleisure end-user category.

For Under Armour, this represents a major opportunity and a current weakness. Women's products make up less than 25% of the company's total business, lagging behind competitors like Lululemon Athletica. New CEO Kevin Plank has made this a clear priority, stating, 'We will go after women harder than this company has ever seen.' The company is seeing early traction, noting 'promising growth in our women's bras and bottoms' in the FY2025 Annual Report.

The table below outlines the market opportunity versus Under Armour's current product category mix in FY2025, highlighting the need for a stronger pivot to the women's segment.

Metric	Value (FY2025)	Strategic Implication for UA
UA Total Revenue (FY2025)	$5.2 billion	Revenue decline of 9% highlights need for new growth vectors.
UA Women's Apparel Share of Business	Less than 25%	Massive under-penetration in a dominant consumer segment.
Global Women's Sports/Swimwear Revenue (2025)	$102 billion	Clear, immediate market opportunity for focused expansion.
UA Apparel Revenue (FY2025)	$3.5 billion	Core category must be revitalized through women's line innovation.

Next step: Product Design and Marketing: Finalize the Fall 2025 women's collection marketing plan by next Tuesday, focusing on performance and style.

Under Armour, Inc. (UA) - PESTLE Analysis: Technological factors

You're looking at technology not just as a cost center, but as the core engine for product differentiation and operational efficiency. For Under Armour, the technological landscape in 2025 is a dual-edged sword: the immediate challenge is stabilizing the core e-commerce platform after a strategic pullback, but the long-term opportunity lies in advanced materials and data-driven supply chain mastery.

The company's strategic reset is clear: simplify the product line and get smarter about how they sell it. This means every dollar spent on tech, from a new fabric blend to a supply chain algorithm, must directly translate into a better product or a more profitable transaction. It's about precision, not just spending.

Rapid growth of e-commerce and mobile shopping demands seamless digital integration and logistics.

The digital channel is non-negotiable, but Under Armour has been deliberately pulling back on heavy discounting to protect the brand's premium image. This resulted in a significant, though planned, drop in online revenue for the fiscal year 2025. Specifically, e-commerce revenue declined by a sharp 23% for the full fiscal year 2025.

Still, e-commerce remains a critical component of the Direct-to-Consumer (DTC) strategy, accounting for 35% of the total DTC business for the year. The focus now is on improving the user experience (UX) to drive full-price sales, which means investing in a better digital storefront, streamlined checkout, and enhancing cross-channel capabilities for a true omnichannel experience. You need the digital platform to be a brand showcase, not just a clearance rack.

Fiscal Year 2025 E-commerce Performance	Value/Percentage	Context
Full-Year E-commerce Revenue Change	-23% (Decline)	Result of planned reduction in promotional activities.
E-commerce as % of Total DTC Revenue (FY2025)	35%	Indicates the channel's foundational importance despite the revenue drop.
Q4 E-commerce Revenue Change	-27% (Decline)	Reflects ongoing planned reductions in discounting.

Investment in smart apparel and connected fitness technology is crucial for product differentiation.

While the company previously made a massive bet on Connected Fitness, spending $710 million on acquisitions like MapMyFitness, MyFitnessPal, and Endomondo, that strategy was largely unwound with the sale of MyFitnessPal and the shutdown of Endomondo. The lesson here is that data is only valuable if you can translate it into actionable product or marketing insights. The remaining MapMyFitness platform is now integrated, focusing on a more cohesive digital experience for the athlete.

The current product strategy, which includes a strengthened lineup planned for Fall 2025, is centered on 'transformative innovations steeped in performance.' This means the focus is shifting back to the core product-apparel and footwear-but with a technological edge. The goal is to embed technology that genuinely improves performance and recovery, rather than just tracking it.

Advanced material science offers competitive advantages in performance and sustainability.

This is where the long-term competitive moat gets dug. Under Armour is defintely prioritizing material innovation, which is essential for both performance and meeting rising consumer demand for sustainability. A major move in November 2025 was the announcement of a new, long-term partnership with the University of Notre Dame.

This joint research initiative is a smart way to outsource high-risk, high-reward R&D. The focus areas are concrete and directly address market trends:

• Testing recyclable, biodegradable, or low-impact fabrics.
• Researching novel polymer materials for enhanced performance.
• Evaluating new product prototypes in real-world student-athlete testing.

This material science push is about creating a proprietary edge that competitors can't easily copy, moving beyond just moisture-wicking fabric to truly next-generation performance textiles.

Data analytics and AI are essential for optimizing inventory, pricing, and personalized marketing.

The most immediate and financially impactful use of technology is in the supply chain and operational planning. Under Armour is actively working to become 'smarter, more efficient by modernizing our supply chain,' with a focus on improving end-to-end planning and cross-channel capabilities. This is pure data analytics at work.

Here's the quick math: inefficiencies cost money, so streamlining the supply chain directly boosts the bottom line. The company's expanded Fiscal 2025 restructuring plan, which includes optimizing the strategic supply chain capabilities, is expected to incur pre-tax restructuring and related charges in the range of $140 million to $160 million, with a large portion tied to facility exits and optimization. That's a significant investment in operational tech and logistics overhaul.

The goal is a disciplined marketplace management: ensuring the right product is in the right place at the right time. This requires advanced predictive modeling-essentially AI and machine learning-to forecast demand, optimize inventory levels, and reduce the need for margin-eroding promotions. The Notre Dame partnership even includes leveraging advanced capabilities in computation and predictive modeling for product development.

Under Armour, Inc. (UA) - PESTLE Analysis: Legal factors

Ongoing legal battles related to past accounting practices continue to require significant resources.

You need to know that the single largest legal and financial headwind for Under Armour, Inc. in fiscal year 2025 was the resolution of a long-running securities fraud class-action lawsuit. The company agreed to a settlement payment of $434 million to resolve claims brought on behalf of shareholders who purchased stock between September 2015 and November 2019. This substantial, one-time expense provides certainty but hits the balance sheet hard. The company had previously accrued $100 million in litigation reserves, but the final agreement required an additional accrual to reach the full $434 million during the first quarter of fiscal year 2025.

The settlement payment is planned to be covered through a combination of cash on hand and/or drawing on its $1.1 billion revolving credit facility. This is a huge outlay, and it effectively closes the book on the accounting practices that were under investigation by the Securities and Exchange Commission (SEC) and the Department of Justice (DOJ). Honestly, moving past a seven-year-old matter provides a clear path forward, but the cost is a material drag on FY2025 earnings. Here's the quick math on the legal hit:

Legal Event	Fiscal Year 2025 Financial Impact	Source of Funds
Securities Fraud Class-Action Settlement	$434 million (Total Accrual)	Cash on hand / $1.1 billion revolving credit facility

Stricter global data privacy regulations (like GDPR) complicate customer data collection and use.

Global data privacy laws, particularly the European Union's General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA), pose a significant and defintely growing legal risk. These regulations complicate how Under Armour, Inc. collects, stores, and uses customer data for its direct-to-consumer (DTC) channels and digital platforms.

The risk became concrete in late 2025 with the reported claim by the Everest ransomware group of a major data breach, allegedly stealing 343 GB of internal data, including employee and customer information. A breach of this scale creates massive legal exposure.

• GDPR Exposure: Fines can reach up to €20 million (approximately $22 million USD) or 4% of annual global revenue, whichever is greater, for serious infringements.
• CCPA/CPRA Exposure: Regulators can impose fines of up to $7,988 per intentional violation, with no cap on total penalties, plus consumers can seek damages of up to $799 per incident in private lawsuits.

Even without a final fine, compliance itself is a continuous, non-negotiable cost. For a large, multinational corporation, the average initial investment for a compliant data protection framework is around $1.3 million, plus ongoing annual audit costs that can range from $50,000 to $500,000. What this estimate hides is the true cost of managing data subject access requests (DSARs), which average $1,500 per request.

Complex international intellectual property (IP) laws require constant vigilance against counterfeiting in Asia.

The battle to protect Under Armour, Inc.'s intellectual property (IP)-its logos, designs, and proprietary fabric technology-is a constant, expensive legal fight, especially in Asia, which is central to its supply chain. The Office of the United States Trade Representative (USTR) 2025 Special 301 Report highlights the persistent problem.

• China: Remains on the Priority Watch List due to persistent IP challenges, including widespread counterfeiting and inadequate enforcement mechanisms.
• Vietnam: Is on the Watch List, noted as a leading source of online piracy and a key sourcing hub where counterfeit goods proliferate.
• Southeast Asia: Physical markets in countries like Thailand and Indonesia continue to be cited as hubs for counterfeit apparel and footwear, making enforcement difficult and costly.

The cost isn't just in legal fees; it's in lost sales, brand dilution, and the expense of anti-counterfeiting programs, which include monitoring, raids, and litigation across multiple jurisdictions. The legal framework is fragmented, so the company must manage dozens of unique IP laws, making a single, unified enforcement strategy impossible.

Labor laws and wage regulations in key manufacturing hubs, like Southeast Asia, are constantly evolving.

Changes in labor laws and wage regulations in key manufacturing countries, primarily in Southeast Asia, translate directly into increased operating costs and legal compliance risk for Under Armour, Inc. While the company is a member of the Fair Labor Association (FLA) and mandates supplier compliance with its codes, local legal shifts still impact the bottom line.

The most direct financial impact in FY2025 related to labor and operational efficiency is captured within the company's expanded restructuring plan. The total estimated pre-tax restructuring and related charges are now up to $255 million, which is expected to be substantially complete by the end of fiscal year 2026. A specific component of this is the cost associated with workforce reduction and facility changes, which are inherently tied to evolving labor and operational laws.

• The restructuring plan includes up to $107 million in cash-related charges.
• A portion of this cash expense is approximately $34 million allocated for employee severance and benefits costs.

Staying compliant with rising minimum wage laws, evolving worker classification rules, and enhanced workplace safety regulations in manufacturing hubs is a continuous, escalating expense. You must factor in these compliance costs as a permanent part of the cost of goods sold (COGS).

Under Armour, Inc. (UA) - PESTLE Analysis: Environmental factors

Pressure from investors and consumers to meet ambitious net-zero carbon emission goals in the supply chain.

You are facing substantial pressure from both shareholders and consumers to align your climate strategy with the 1.5°C global warming limit, especially concerning your supply chain (Scope 3 emissions). Under Armour's public goal is to achieve net-zero greenhouse gas (GHG) emissions by 2050, a pledge made to the Business Ambition for 1.5°C Campaign. However, the near-term path is now less clear, which creates a significant reputational risk.

In May 2025, Under Armour announced it would not pursue the Science Based Targets initiative (SBTi) re-validation of its 2030 goal or validation of its 2050 net-zero commitment at this time, citing a strategy reassessment. This move puts the company behind peers like Nike and Adidas, and it has already triggered shareholder action, with a June 2025 proxy filing requesting a report on how the company intends to achieve its existing targets. The core challenge remains the supply chain, which accounts for the vast majority of emissions; Under Armour has an interim goal to source at least 80% of energy from renewable sources in its owned and operated facilities by the end of 2025, but it lacks a specific renewable energy target for its manufacturing supply chain.

Increased cost and complexity of sourcing sustainable and recycled materials for apparel production.

The shift to lower-impact materials is a cost driver, but it is also a non-negotiable for maintaining brand relevance and meeting a 2025 target. Under Armour has set clear, near-term material goals that force complex sourcing changes. The company aims for at least 35% recycled polyester in its apparel and accessories by the end of 2025. This requires a massive, reliable pipeline of high-quality recycled feedstock, which is often more expensive and logistically challenging than virgin polyester.

Here is the quick math on key material targets for the 2025 fiscal year:

Material Goal	2025 Target	Impact
Recycled Polyester in Apparel	At least 35%	Increases sourcing complexity and raw material cost.
Low-Impact Cotton	100% of cotton sourced	Requires robust supply chain tracing and certification (e.g., Better Cotton Initiative or organic).
Water-Saving Materials	Scale innovative materials to at least 25% of purchased materials	A 2023 report indicated difficulty in designing a path to this 25% target, signaling a likely miss and continued reliance on traditional, water-intensive materials.

Plus, the company is working on reducing fiber shedding-a major environmental concern-and released a tool in late 2023 to help textile mills measure the rate that fibers shed from fabrics, which is a defintely necessary step to manage this pollution risk.

Water usage and chemical waste in textile manufacturing are major operational and reputational risks.

Water and chemical management in the textile wet-processing stage pose immediate operational and reputational risks, particularly in water-stressed regions where many suppliers operate. Under Armour has set specific, measurable targets for 2025 to mitigate these risks, focusing on both resource efficiency and chemical safety.

The company is targeting a 20% water savings at strategic mills and Tier 1 suppliers with wet processes by 2025. This requires direct capital investment and process changes at the supplier level, which can be difficult to enforce consistently across a global supply chain. On the chemical front, the goal is to eliminate 100% of biocides and fluorine Durable Water Repellent (DWR) chemicals in products by 2025, which is a critical consumer safety and environmental win. Also, to reduce the environmental impact of footwear production, they are working to cut the volatile organic compounds (VOC) impact from solvent use by 30% by 2025. Honestly, meeting these hard chemical deadlines is a clear, actionable priority that helps protect the brand.

New EU and US regulations on product circularity and end-of-life waste management.

New regulations in major markets like the European Union are transforming end-of-life product management from a logistics problem into a direct financial liability, forcing a shift to a circular business model. The most impactful change in the 2025 fiscal year is the EU's mandate for all Member States to implement systems for the separate collection of textile waste by January 1, 2025.

This is tied to the implementation of Extended Producer Responsibility (EPR) schemes, which make producers financially responsible for the collection, sorting, and recycling of the textiles they place on the EU market. The fees for EPR will be 'eco-modulated,' meaning products that are hard to recycle or less durable will incur higher financial contributions. This directly incentivizes Under Armour to redesign products for circularity now.

The company's internal goals reflect this regulatory pressure:

• Extend the life of at least 75% of damaged and defective returned products through repair and recycling by 2025.
• Expand circularity solutions globally by 2025, building on a 2023 take-back pilot.
• Reduce single-use plastic brand product packaging by 75% by 2025.

In the US, while there is no federal EPR law yet, state-level action like the Massachusetts Textile Waste Ban (2025) is forcing regional changes in waste management, and proposed federal and California legislation indicates that a national EPR framework is a near-term risk. So, the company needs to prepare for a patchwork of state-level compliance costs.