Under Armour, Inc. (UA): BCG Matrix [Dec-2025 Updated]

You're looking for a clear-eyed view of where Under Armour, Inc. (UA) is putting its chips right now, especially after a tough fiscal 2025. Honestly, the BCG Matrix paints a stark picture: while Accessories grew 1% to $411 million and premium innovation aims for Star status, the core North America business shrank 11% to $3.1 billion, and the $1.2 billion Footwear segment is a major Question Mark needing investment to catch a growing market. Let's map out which parts of Under Armour, Inc. (UA) are generating the cash, which need the chips, and which we should probably divest.

Background of Under Armour, Inc. (UA)

You're looking at Under Armour, Inc. (UA) as of late 2025, and the story is one of a strategic reset following a challenging period. The company, founded in 1996 by Kevin Plank, is still heavily focused on developing, marketing, and distributing its branded performance apparel, footwear, and accessories globally. Honestly, the recent results show they are making some headway in their repositioning efforts, even if the top line is still shrinking.

For the full Fiscal Year 2025, which concluded on March 31, 2025, Under Armour, Inc. reported net revenues of $5.16 billion, marking a 9% decrease compared to the prior fiscal year's $5.70 billion. This revenue decline was consistent across both reported and currency-neutral measures. To be fair, the company swung from a net income of $232.04 million in FY24 to a net loss of $201.27 million in FY25. Furthermore, the operating income of $229.75 million in the previous year flipped to an operating loss of $185.22 million for FY25.

Still, there's a clear financial indicator of brand health improvement you should note: the gross margin for FY25 actually increased by 180 basis points to reach 47.9%. This lift came from supply chain efficiencies, lower freight and product costs, and crucially, reduced discounting in the direct-to-consumer (DTC) channel. As of late 2025, Under Armour, Inc. has managed to surpass Adidas as the second-largest sports apparel company by sales in the United States, trailing only Nike. By December 2025, the market capitalization stood around $1.90 Billion USD.

Looking at the business structure, the North America segment remains the core, accounting for approximately 60% of net revenues in FY25, with US sales alone hitting $2.8 billion. The international business, comprising EMEA, Asia-Pacific, and Latin America, made up the remaining 40%. From a channel perspective, wholesale made up 58% of net revenues, DTC was 40%, and licensing was 2%. By product category for the full year, Apparel revenue was $3.5 billion (down 9%), Footwear was $1.2 billion (down 13%), and Accessories revenue grew slightly to $411 million (up 1%).

Under Armour, Inc. (UA) - BCG Matrix: Stars

You're looking at the business units within Under Armour, Inc. (UA) that are currently leading in their respective markets and operating in high-growth spaces. These are the areas management is pouring resources into because they have the best shot at long-term dominance, even if they currently consume significant cash to maintain that lead.

The EMEA Region is showing clear momentum, which positions it as a potential Star. While the full fiscal year 2025 (FY25) saw the region remain flat, the first quarter of fiscal 2026 (Q1 FY26) delivered concrete results that suggest this high-growth trajectory is starting. This growth is built on the prior year's stability, which is a good sign for sustained investment.

Here's a look at the regional performance that supports this classification:

• EMEA Region revenue growth in Q1 FY26 was 9.6 percent, reaching $248.6 million.
• The full fiscal year 2025 (FY25) for EMEA was reported as flat.
• The outlook for the remainder of FY26 anticipates continued high single-digit percentage growth in EMEA.

In terms of product focus, Under Armour, Inc. is heavily backing innovation in specific categories where they see market share potential. The premium footwear segment, anchored by new product introductions, is a key area for future cash generation, despite overall footwear revenue contracting in FY25.

The focus areas identified for high-growth investment include:

• Premium Footwear Innovation: The new Fall 2025 lineup, featuring models such as the Velociti Elite, is the primary focus for future high-growth in the footwear category.
• Women's Bras and Bottoms: This segment is a strategic focus, showing promising growth within a market segment that is expanding rapidly.

The Accessories segment stands out as the only category that managed to grow its top line during the challenging FY25 environment. This small but positive growth indicates a solid market position that can be scaled.

Here is a comparison of the full-year FY25 performance across the key product categories:

The Accessories segment's growth, though modest, contrasts sharply with the declines in Apparel and Footwear for FY25. This $\text{1%$ increase to $\text{411 million$ shows it is currently the most stable product line, qualifying it for Star status based on its relative market share gain in a tough year. Honestly, any segment growing when the rest are contracting deserves attention.

Under Armour, Inc. (UA) - BCG Matrix: Cash Cows

You're looking at the established, reliable parts of Under Armour, Inc.'s business-the segments that generate significant cash with minimal required growth investment. These are the units that fund the riskier bets, like turning a Question Mark into a Star.

Core Apparel Segment remains the bedrock of Under Armour, Inc.'s top line, even as the company navigates its strategic reset. For Fiscal Year 2025, Apparel revenue registered $3.5 billion, representing a 9% decrease year-over-year. This segment is mature but provides the necessary stability.

The North America Wholesale Channel, while facing revenue headwinds, is a key driver of profitability through margin discipline. For the full Fiscal Year 2025, the overall gross margin for Under Armour, Inc. improved by 180 basis points to 47.9%. This margin expansion is a classic cash-cow indicator, achieved despite the North America segment revenue declining by 11% in FY25.

The original performance lines, such as HeatGear Base Layers, are the quintessential cash cows. These products are mature, possess high brand equity, and continue to deliver consistent sales volume and strong margins, as noted by their continued positive performance within the overall apparel results for FY25.

The strategy of Disciplined Marketplace Management directly supports cash flow generation. Under Armour, Inc. intentionally reduced promotional activity in its Direct-to-Consumer (DTC) business to protect brand equity and maximize margin. This action is evident in the full-year results:

• eCommerce revenue dropped 23% in FY25 due to planned promotional reductions.
• This reduction in discounting was a primary driver for the 180 basis points full-year gross margin increase.
• eCommerce accounted for 35% of the total DTC business for the full fiscal year.

Here's a quick look at the key financial metrics supporting the Cash Cow classification for FY25:

The focus here is on 'milking' these established lines for cash flow, which is why you see the deliberate trade-off: revenue contraction in exchange for margin improvement. Investments are focused on efficiency, not market share expansion in these areas.

Under Armour, Inc. (UA) - BCG Matrix: Dogs

You're looking at the segments of Under Armour, Inc. (UA) that are clearly struggling to gain traction in low-growth or declining markets, fitting squarely into the Dogs quadrant of the matrix. These are units where market share is low, and the market itself isn't expanding much, meaning expensive turn-around plans are unlikely to yield significant returns. Honestly, divestiture is usually the cleanest path here.

The performance in the Asia-Pacific Region is a prime example of this low-growth, low-share dynamic. For the full fiscal year 2025 (FY25), revenue in this area saw a significant contraction, declining by 13% year-over-year, both on a reported and currency-neutral basis. Looking ahead, management projected this weakness would continue into the start of the next fiscal year, anticipating a mid-teen percent rate decline in Q1 FY26, confirming the market remains challenging for UA's current positioning.

Domestically, the North America Business (Overall) also shows Dog characteristics, operating in a mature, low-growth market where the company is actively losing share. Full-year FY25 revenue for North America fell by 11%, settling at $3.1 billion. This substantial drop in the core market signals deep-seated issues with product relevance or distribution strategy in the home turf.

Within the Direct-to-Consumer (DTC) segment, the E-commerce Discounting Channel was intentionally shrunk as part of the strategic reset, which is a tactical move to shed low-value volume. For the full FY25, e-commerce sales plunged by 23%, a direct result of planned promotional cuts designed to elevate brand perception. To be fair, this intentional reduction in discounting is a necessary step, even if it inflates the appearance of a decline in this specific channel.

The ultimate action for a Dog is divestiture, and we saw Under Armour, Inc. execute this clearly with the MapMyFitness Platform. The sale of this digital asset closed on August 30, 2024, which falls within the second quarter (Q2) of FY25. This move signals a definitive exit from a non-core, low-performing business unit that wasn't aligning with the 'Focused Performer' target consumer, freeing up capital and management focus.

Here's a quick summary of the financial contraction seen in these Dog-like areas for FY25:

The strategic implications of these figures suggest several areas require immediate, decisive action, which is why we categorize them as Dogs. The key performance indicators showing negative momentum include:

• Asia-Pacific revenue decline of 13% in FY25.
• North America revenue falling to $3.1 billion.
• E-commerce sales reduction of 23% due to promotional cuts.
• Divestiture of the MapMyFitness platform in Q2 FY25.

If onboarding takes 14+ days, churn risk rises defintely.

Finance: draft 13-week cash view by Friday.

Under Armour, Inc. (UA) - BCG Matrix: Question Marks

You're looking at business units that are burning cash right now, but they operate in markets where the tide is rising. For Under Armour, Inc., these Question Marks represent high-potential areas that haven't yet captured meaningful market share, demanding heavy investment to avoid slipping into the Dog quadrant.

Footwear Segment: Revenue declined 13% to $1.2 billion in FY25, but the global athletic footwear market is growing at a 3.76% to 7.14% CAGR.

The footwear segment is a classic Question Mark case. While the global athletic footwear market shows a healthy growth trajectory, estimated to compound annually between 3.76% and 7.14%, Under Armour, Inc.'s performance in this category lagged significantly in the last fiscal year. Footwear revenue for the full fiscal year 2025 contracted by 13%, landing at $1.2 billion. This revenue decline in a growing market signals low current market share, which is the defining characteristic of this quadrant. The Curry Brand, Velociti Elite, and new designs showed encouraging signs, but the overall segment needs a major infusion of investment to convert that product momentum into market share gains quickly. Honestly, this is where the cash burn is most visible.

Latin America Region: Small revenue base with volatile results, but Q4 FY25 showed a 3% currency-neutral increase, signaling potential high growth.

Geographically, the Latin America region fits the profile. For the full fiscal year 2025, revenue in this area declined 6% year-over-year, or was flat on a currency-neutral basis. However, the fourth quarter of FY25 provided a flicker of the high-growth potential you look for in a Question Mark; currency-neutral revenue there actually increased by 3% in Q4. This volatility suggests buyers haven't fully discovered or committed to the brand's offering in this growing territory, making it a candidate for focused investment to quickly build share.

Team Sports Focus: A renewed strategic focus to win the hearts of young team athletes, requiring significant marketing investment to build share.

Under Armour, Inc. has made reinvigorating its focus on Team Sports a core part of its Americas strategy, aiming to connect with young athletes. This requires significant marketing dollars to amplify awareness and consideration, which directly translates to high cash consumption with low immediate returns. The company plans to launch its most significant activation in Fall 2025 to support this push. This investment is visible in the Selling, General, and Administrative (SG&A) expenses, which rose 6% to $638 million in Q3 FY25 alone, largely due to increased marketing investments. For the full year FY25, total SG&A expenses increased 8% year-over-year to $2.6 billion.

Direct-to-Consumer (DTC) E-commerce: The channel is being reset for premium positioning, requiring heavy investment to reverse the 23% sales drop and gain share.

The DTC e-commerce channel is undergoing a strategic reset to achieve a more premium brand representation, which involves tightening distribution and reducing promotional activity. This discipline, while intended to boost gross margin, caused a sharp revenue contraction in the short term. For the full fiscal year 2025, e-commerce sales plunged by 23%. This significant drop in a critical growth channel means it is currently consuming cash to fund the repositioning effort, hoping to emerge as a Star later. In Q4 FY25, the e-commerce revenue drop was even steeper at 27%.

Here's a quick look at the financial context for these high-potential, low-share areas:

The path forward for these units is clear, demanding immediate, decisive action:

• Invest heavily to rapidly increase market share in footwear and Latin America.
• Maintain premium focus in DTC e-commerce despite the 23% sales contraction.
• Align marketing spend to support the Fall 2025 Team Sports activation.
• Monitor cash burn closely, as these units currently generate low returns.

If onboarding takes too long, the Team Sports investment might not yield the desired results by the next fiscal cycle.