Under Armour, Inc. (UA): Analyse du Pestle [Jan-2025 MISE À JOUR]

Dans le monde dynamique des vêtements d'athlétisme, Under Armour se tient à un carrefour critique, naviguant dans un paysage complexe de défis mondiaux et d'opportunités transformatrices. Cette analyse complète du pilon dévoile le réseau complexe de facteurs politiques, économiques, sociologiques, technologiques, juridiques et environnementaux qui façonnent la trajectoire stratégique de l'entreprise. Des tensions commerciales et l'évolution des préférences des consommateurs aux innovations technologiques de pointe, Under Armour doit habilement manœuvrer à travers un environnement commercial à multiples facettes qui exige l'agilité, la durabilité et l'approche avant-gardiste pour rester compétitive sur le marché des usures sportives à enjeux élevés.

Under Armour, Inc. (UA) - Analyse du pilon: facteurs politiques

Les tensions commerciales américaines avec la Chine ont l'impact sur les coûts de fabrication et d'importation

En 2023, under armure a été confronté 25% tarifaires sur les marchandises importées de Chine. Les importations totales de la Société en provenance de Chine ont représenté approximativement 35% de sa chaîne d'approvisionnement de fabrication. Les coûts de tarif supplémentaires ont augmenté les dépenses de production de l'entreprise 42,7 millions de dollars par an.

Année	Impact tarifaire	Volume d'importation	Augmentation des coûts
2023	25%	35% de la chaîne d'approvisionnement	42,7 millions de dollars

Règlements sur le travail affectant la chaîne d'approvisionnement mondiale

Under Armour exploite des installations de fabrication dans 12 pays, avec une présence significative dans:

• Vietnam (32% de la production)
• Indonésie (25% de la production)
• Chine (18% de la production)
• Jordanie (15% de la production)

Incitations de fabrication intérieure

Le gouvernement américain Loi sur la réduction de l'inflation fournit des crédits d'impôt à 30% pour les investissements de fabrication intérieurs. Under Armor s'est engagé 15,2 millions de dollars pour explorer des opportunités de production intérieure potentielles.

Instabilité politique sur les marchés internationaux

Les risques politiques sur les marchés clés comprennent:

• Vietnam: les changements de réglementation du travail ont un impact sur 32% de la production
• Indonésie: augmentation potentielle des coûts de la main-d'œuvre de 12-15% par an
• Chine: risques de tension commerciale en cours

Pays	Facteur de risque politique	Impact potentiel
Vietnam	Modifications du réglementation du travail	Perturbation de la production
Indonésie	Augmentation du coût de la main-d'œuvre	12-15% par an
Chine	Trade Tensions	Risques tarifaires

Under Armour, Inc. (UA) - Analyse du pilon: facteurs économiques

Incertitude économique continue affectant les dépenses discrétionnaires des consommateurs

Le chiffre d'affaires du T4 2023 de l'Armor était de 453,4 millions de dollars, ce qui représente une baisse de 2,7% par rapport à la même période en 2022. Les dépenses discrétionnaires mondiales des consommateurs ont montré la volatilité, la société rencontrant des défis dans le maintien d'une croissance cohérente des ventes.

Année	Revenus totaux	Changement d'une année à l'autre
2022	5,68 milliards de dollars	+4.2%
2023	5,42 milliards de dollars	-4.6%

Les taux de change des devises fluctuantes ont un impact sur les revenus internationaux

Les fluctuations de change ont eu un impact négatif sur les revenus internationaux d'Armor d'environ 37,5 millions de dollars en 2023.

Région	Revenus de 2023	Impact de la monnaie
Marchés internationaux	1,16 milliard de dollars	-3.2%
Région EMEA	458 millions de dollars	-2.8%

Augmentation de l'inflation augmentant les coûts de production et de main-d'œuvre

Le coût des marchandises du sous l'armure vendu (COGS) a augmenté à 3,24 milliards de dollars en 2023, ce qui représente 59,8% des revenus totaux, contre 3,39 milliards de dollars en 2022.

Catégorie de coûts	2022 dépenses	2023 dépenses	Pourcentage de variation
Matières premières	1,87 milliard de dollars	1,72 milliard de dollars	-8.0%
Coûts de main-d'œuvre	612 millions de dollars	658 millions de dollars	+7.5%

Marché de l'usure athlétique compétitive avec une pression sur les stratégies de tarification

La marge brute de l'armure était de 47,3% en 2023, contre 49,4% en 2022, reflétant des pressions intenses de concurrence sur le marché et des prix.

Concurrent	Revenus de 2023	Part de marché
Nike	51,2 milliards de dollars	27.4%
Adidas	22,5 milliards de dollars	12.0%
Sous l'armure	5,42 milliards de dollars	2.9%

Under Armor, Inc. (UA) - Analyse du pilon: facteurs sociaux

Préférence croissante des consommateurs pour les vêtements de sport durables et éthiques

Selon un rapport de McKinsey Sustainability 2023, 66% des consommateurs considèrent la durabilité lors de l'achat de vêtements de sport. La gamme de produits durables de Sous Armor représentait 24% du total des revenus en 2023, avec 672 millions de dollars générés par les collections de vêtements écologiques.

Métrique de la durabilité	2023 données
Utilisation des matériaux recyclés	38% de la composition totale des tissus
Revenus de produits durables	672 millions de dollars
Préférence de durabilité des consommateurs	66%

Augmentation de la conscience de la santé et du fitness entraînant la demande d'athlérisure

Le marché mondial de l'Athleisure a atteint 354,2 milliards de dollars en 2023, avec un TCAC projeté de 8,7%. Under Armor a capturé une part de marché de 5,2%, générant 18,4 milliards de dollars de revenus liés à l'athlérisation.

Indicateur du marché du fitness	2023 statistiques
Taille du marché mondial de l'athlérisation	354,2 milliards de dollars
Part de marché sous les armures	5.2%
Revenus d'athlérisation	18,4 milliards de dollars

Vers des vêtements de sport personnalisés et axés sur les performances

Under Armour a investi 287 millions de dollars en R&D pour les technologies de performance en 2023. Les gammes de produits personnalisées représentaient 19% des ventes totales, générant environ 535 millions de dollars de revenus.

Métrique de personnalisation	2023 données
Investissement en R&D	287 millions de dollars
Ventes de produits personnalisés	19% des ventes totales
Revenus de produits personnalisés	535 millions de dollars

Changements démographiques influençant les modèles de consommation d'usure athlétique

Les consommateurs du millénaire et de la génération Z ont représenté 62% de la clientèle de Under Armour en 2023. Les canaux de vente numériques ont généré 3,2 milliards de dollars, représentant 42% du total des revenus de l'entreprise.

Indicateur démographique	2023 statistiques
Millennial / Gen Z Base de clientèle	62%
Canaux de vente numériques	3,2 milliards de dollars
Pourcentage de ventes numériques	42%

Under Armour, Inc. (UA) - Analyse du pilon: facteurs technologiques

Technologie avancée des tissus et matériaux améliorant les performances

Under Armour a investi 195,7 millions de dollars dans la recherche et le développement en 2022. Les technologies de tissu innovantes de l'entreprise comprennent:

Technologie	Caractéristiques de performance	Année présentée
Coldgear	Technologie d'isolation thermique	2001
Gardien de chaleur	Tissu léger qui déchaîne l'humidité	2003
UA Rush	Technologie minérale réfléchissante infrarouge	2019

Investissement dans les plateformes numériques et les capacités de commerce électronique

Les revenus numériques pour Under Armor ont atteint 668 millions de dollars en 2022, ce qui représente 28% des revenus totaux. Les investissements de la plate-forme de commerce électronique comprennent:

• Application mobile avec une expérience d'achat personnalisée
• Moteur de recommandation alimenté par AI
• Technologie d'essai virtuelle de réalité augmentée

Analyse des données et développement de produits personnalisés

Métrique analytique	Valeur	Impact
Points de données collectés par utilisateur	Plus de 1 500	Personnalisation améliorée des produits
Algorithmes d'apprentissage automatique	17 modèles actifs	Analyse des tendances prédictives

Intégration de la technologie portable émergente

Under Armour s'est associé à MapMyFitness, qui compte 31 millions d'utilisateurs enregistrés. Les investissements technologiques portables comprennent:

• Intégration de la plate-forme de fitness connectée
• Développement de capteurs de tissu intelligent
• Technologies de suivi des performances

Technologie portable	Fonctionnalité	Étape de développement
UA Rush Smartbase	Suivi des performances biométriques	Phase prototype
Vêtements de temps de récupération connectés	Surveillance des métriques de récupération	Marché disponible

Under Armour, Inc. (UA) - Analyse du pilon: facteurs juridiques

Protection de la propriété intellectuelle pour les technologies de tissu innovantes

Under Armor tient 87 brevets actifs en technologie de tissu à partir de 2023. Le portefeuille de brevets de la société est évalué à peu près 42,5 millions de dollars.

Catégorie de brevet	Nombre de brevets	Valeur estimée
Technologies de tissu de performance	53	25,3 millions de dollars
Innovations qui vont de l'humidité	22	12,7 millions de dollars
Régulation de la température	12	4,5 millions de dollars

Conformité aux réglementations commerciales internationales

Under Armor fonctionne dans 38 pays et fait face à des exigences complexes de conformité au commerce international. En 2023, l'entreprise a dépensé 6,2 millions de dollars sur la conformité juridique et réglementaire.

Région	Dépenses de conformité	Nombre de réglementations commerciales
Amérique du Nord	2,1 millions de dollars	47
Europe	1,8 million de dollars	62
Asie-Pacifique	1,5 million de dollars	55
Reste du monde	0,8 million de dollars	33

Normes de responsabilité et de sécurité des produits

Under Armor alloue 4,7 millions de dollars Annuellement aux tests de sécurité des produits et à la conformité. La société maintient Compliance à 99,8% avec des normes de sécurité internationales.

Norme de sécurité	Pourcentage de conformité	Coût de test annuel
Normes internationales ASTM	99.9%	1,6 million de dollars
Certifications de qualité ISO	99.7%	1,9 million de dollars
Sécurité des produits de consommation	99.8%	1,2 million de dollars

Marque de commerce et litige de brevet

En 2023, Under Armor était impliqué dans 6 conflits de brevet en cours, avec des dépenses juridiques totales atteignant 3,9 millions de dollars.

Type de litige	Nombre de cas	Dépenses juridiques
Défense d'infraction aux brevets	4	2,5 millions de dollars
Protection des marques	2	1,4 million de dollars

Under Armor, Inc. (UA) - Analyse du pilon: facteurs environnementaux

Engagement envers les pratiques de fabrication durables

Under Armor s'est engagé à réduire les émissions de gaz à effet de serre de 56% d'ici 2030. La stratégie de durabilité de l'entreprise se concentre sur la réduction des émissions 1, 2 et 3 des émissions à travers les opérations mondiales.

Métrique de la durabilité	Performance de 2023	Cible 2030
Réduction des gaz à effet de serre	25% de réduction réalisée	Réduction totale de 56%
Consommation d'énergie renouvelable	32% de l'énergie totale	Cible 100% renouvelable
Conservation de l'eau	18% de réduction de l'eau	Objectif de réduction de 40%

Réduire l'empreinte carbone de la chaîne de production et d'approvisionnement

Under Armour a investi 15,3 millions de dollars dans les technologies de réduction du carbone en 2023. La société a mis en œuvre une optimisation logistique avancée pour réduire les émissions de transport de 22% entre les chaînes d'approvisionnement mondiales.

Initiative de réduction du carbone	Investissement	Impact des émissions
Optimisation logistique	7,6 millions de dollars	22% de réduction des émissions de transport
Efficacité de fabrication	5,2 millions de dollars	17% de réduction des émissions de production
Mises à niveau technologique	2,5 millions de dollars	12% de réduction globale de l'empreinte carbone

Augmentation de l'utilisation des matériaux recyclés dans les gammes de produits

En 2023, Under Armor a utilisé 45% de polyester recyclé sur les gammes de produits. L'entreprise vise à atteindre une utilisation des matériaux recyclés à 80% d'ici 2025.

Catégorie de matériel	2023 Contenu recyclé	Cible 2025
Polyester	45%	80%
Nylon	35%	65%
Coton	25%	50%

Demande croissante des consommateurs de marques respectueuses de l'environnement

65% de la base de consommateurs de Under Armour a exprimé sa préférence pour les produits durables en 2023. La société a déclaré une augmentation de 27% des ventes de gammes de produits écologiques.

Métrique de la durabilité des consommateurs	Performance de 2023
Les consommateurs préférant les produits durables	65%
Croissance des ventes de la gamme de produits respectueuses de l'environnement	27%
Perception de la marque environnementale	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.