Under Armour, Inc. (UA): Business Model Canvas [Dec-2025 Updated]

You're looking at a company in the middle of a tough pivot, and frankly, the numbers show it: UA posted a $201.27 million net loss in FY25 as it shifts from chasing volume to building a premium brand. Honestly, the whole Business Model Canvas reflects this tension-they're leaning hard on core performance value propositions while simultaneously cutting complexity, evidenced by a 25% SKU reduction and a massive $500 million marketing spend aimed at storytelling. We need to see how this strategy balances the $3.0 billion from wholesale against the growing $2.1 billion in DTC sales, all while managing restructuring charges up to $255 million; dig in below to see the nine building blocks driving this near-term risk and long-term potential.

Under Armour, Inc. (UA) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that allow Under Armour, Inc. to move product and build brand equity. These aren't just vendors; they are strategic extensions of the business, especially as the company focuses on regaining premium positioning.

Wholesale Retailers for Broad Market Reach

Wholesale remains a critical channel, though Under Armour, Inc. is managing this relationship with a focus on quality over sheer door count. The strategy involves strengthening ties with key accounts to ensure a more premium representation of the brand across all retail locations. For Fiscal 2025, the North America segment, which sells through wholesale and direct-to-consumer (DTC), accounted for approximately 60% of net revenues, with net revenues generated from sales in the United States totaling $2.8 billion for that fiscal year. No single customer represented more than 10% of the Company's net revenues for Fiscal 2025. Looking at the most recent reported quarter, the second quarter of fiscal 2026 (ending September 30, 2025), wholesale revenue was $775 million, marking a 6 percent decrease year-over-year.

Under Armour, Inc. is actively managing through a wholesale reset period, focusing on delivering elevated products with compelling storytelling to its UA partners. This disciplined approach aims to drive higher-quality growth across all channels.

Athlete Endorsements for Brand Visibility

The brand's visibility is heavily amplified by its roster of top-tier athletes, which are treated as synergistic, long-term business alliances. Stephen Curry's partnership is perhaps the most significant, with his lifetime endorsement deal reportedly worth $215 million and his signature shoe line generating over $1 billion in sales. Jordan Spieth's deal, valued at approximately $8 million per year, reportedly boosted golf segment revenue by $200 million since he signed. Bryce Harper's annual endorsement is valued at approximately $6.5 million.

Here's a quick look at the scale of some of these athlete partnerships:

• Stephen Curry lifetime deal value: $215 million.
• Stephen Curry line reported sales: Over $1 billion.
• Jordan Spieth annual deal value: Approximately $8 million.
• Bryce Harper annual deal value: Approximately $6.5 million.

Manufacturing and Logistics Partners for Global Supply Chain Efficiency

Under Armour, Inc. relies on a global network of outsourced manufacturing partners, while simultaneously working to streamline logistics to manage costs and risks. The company is executing a multiyear distribution logistics initiative projected to yield $100 million in cost savings in the current fiscal year (FY2025). The sourcing strategy involves diversification away from single-country dependency, with a long-term target of not having more than 15-20% dependency on any single country.

For apparel and accessories, the production base is concentrated in Asia, with specific countries handling major volumes. For example, the large facility in Guangzhou, China, employs over 3,000 workers. The key production hubs for apparel and accessories are:

IMG Academy for Youth Sports Event Hosting and Brand Connection

The partnership with IMG Academy is evolving to host marquee youth events, creating direct brand engagement with future talent. This includes the inaugural 2026 Under Armour Track and Field Nationals, which is Florida's first-ever national track and field event. As part of this, IMG Academy is installing a new Rekortan Gel Series track surface, which features a thinner gel layer composed of 84% renewable and recycled materials. This new surface promises a 58% return in energy, optimizing speed while meeting World Athletics force reduction standards.

Key dates for the event, which will feature high school and middle school athletes across all disciplines, are:

• Registration opens: February 1, 2026.
• Registration closes: May 1, 2026.
• Event dates: May 29-31, 2026.

Global Ambassadors to Expand Football (Soccer) Presence

To deepen its footprint in football, Under Armour, Inc. appointed Arsenal manager Mikel Arteta as a Global Ambassador and Director of Performance in August 2025. Arteta will share insights on product development, talent identification, and leadership. A central focus is the UA Next programme, launched in 2023 for athletes aged 16 to 20. To date, over 10,000 athletes have been tested through this scheme, with 18 securing 12-month UA sponsorship contracts. Finance: review the Q3 FY2026 marketing spend against the projected impact of the Arteta partnership by end of Q4.

Under Armour, Inc. (UA) - Canvas Business Model: Key Activities

You're looking at the core engine of Under Armour, Inc. (UA) right now, the things they absolutely must execute well to turn the brand around. It's all about product, story, and making sure the operations support a premium feel.

Performance product innovation and design (e.g., HeatGear, ColdGear)

The focus here is on elevating the product offering to support a premium positioning. This activity involves continuous development, exemplified by recent product launches.

• Launch of Curry Brand's Fox 1 signature shoe.
• Upcoming release of SlipSpeed Echo footwear.

Global brand marketing and storytelling

Under Armour, Inc. is actively investing in marketing to reposition the brand, which shows up in Selling, General, and Administrative (SG&A) expenses. The strategy involves reduced promotional activity to enhance brand perception.

In the third quarter of fiscal 2025, SG&A expenses rose 6 percent to $638 million, primarily due to increased marketing investments. For comparison, in the second quarter of fiscal 2025, SG&A expenses were $520 million, reflecting a 15 percent reduction year-over-year.

Strategic distribution management to elevate brand positioning

Tightening distribution is a core tenet of the current strategy, meaning a deliberate shift in channel mix and operational footprint. This includes making tough calls on physical assets.

A key operational activity involves restructuring the supply chain network, which includes the decision to exit one of its primary distribution facilities located in Rialto, California, by March 2026. This is part of a broader effort to become a more efficient, uncomplicated, and agile company.

Here's how the distribution channels performed in the full fiscal year 2025:

Restructuring and operational efficiency improvements (up to $255 million in charges)

The company is executing a Fiscal 2025 Restructuring Plan aimed at improving financial and operational efficiencies. The total expected pre-tax restructuring charges under this updated plan are up to $255 million.

As of November 2025, the company had already incurred approximately $147 million in restructuring-related charges. By the end of the fourth fiscal quarter of 2025 (March 31, 2025), the company recognized $58 million in restructuring and impairment charges plus $31 million in other related transformational expenses, totaling $89 million incurred under the plan up to that point. The initial plan announced in May 2024 had an anticipated range of $140 million to $160 million.

Direct-to-Consumer (DTC) channel management and e-commerce optimization

Managing the DTC channel involves a deliberate reduction in promotional activity to elevate brand perception, which directly impacts e-commerce performance.

For the full fiscal year 2025, DTC revenue was $2.1 billion, a decline of 11 percent. In the fourth quarter of fiscal 2025, DTC revenue fell 15 percent to $386 million.

The e-commerce component saw a significant drop, which management attributes to the strategy of cutting back on discounts:

• In Q4 FY2025, e-commerce revenue dropped 27 percent.
• For the full FY2025, e-commerce accounted for 35 percent of the total DTC business.
• In Q4 FY2025, e-commerce represented 37 percent of the total DTC business.

Finance: review the Q1 FY2026 projected 4 to 5 percent revenue decrease against the Q1 FY2025 DTC performance by next Tuesday.

Under Armour, Inc. (UA) - Canvas Business Model: Key Resources

You're looking at the core assets Under Armour, Inc. (UA) relies on to execute its strategic reset in late 2025. These aren't just line items on a balance sheet; they are the tangible and intangible engines driving the turnaround.

Global brand equity and performance-driven reputation remains a foundational resource. This reputation is being actively managed through a focus on premium products, such as a new backpack priced at $140, signaling a shift away from deep discounting. The brand is working to rebuild strength, projecting a low double-digit percentage revenue decline for fiscal 2025, with North America expected to see a more pronounced 15 to 17 percent drop as the company resets that market. International revenue, however, showed a decrease of only 6 percent in the second quarter of fiscal 2026 (ending September 30, 2025).

The pipeline of patented material technologies and product innovation is critical for differentiation. As of late 2025, the innovation pipeline is evidenced by recently granted patents, such as one for a resilient/elastomeric material garment granted on November 11, 2025, and another for a system detecting fatigue granted on September 23, 2025. Historically, the portfolio has seen significant engagement, with its most popular patent receiving 235 citations from other companies. The company is also streamlining its offerings, aiming to cut its SKU count by 25 percent.

The experienced leadership team driving the strategic reset is a key intangible resource. CEO Kevin Plank is steering a comprehensive strategy announced in 2024, which includes a Fiscal 2025 restructuring plan. This plan has an estimated total cost range of $140 million to $160 million. The team is focused on enhancing go-to-market capabilities, including faster product launches and exclusive product drops for owned channels.

The physical infrastructure, the global distribution network and owned retail store footprint, is undergoing optimization. This includes the announced exit of a main distribution facility in Rialto, California, as part of the restructuring. On the expansion side, there are stated plans to grow the store fleet in the APAC region, even as the North American business is being streamlined.

Financial liquidity is a necessary resource to fund this overhaul. Here's a quick look at the balance sheet components:

The leadership is also utilizing capital allocation tools to support the stock, having approved a three-year, $500 million share buyback program in May 2024. As of September 30, 2025, 18 million shares worth $115 million had been repurchased under this program.

The key tangible and intangible assets Under Armour, Inc. is deploying include:

• Global brand equity and performance-driven reputation
• Patented material technologies and product innovation pipeline
• Experienced leadership team driving the strategic reset
• Global distribution network and owned retail store footprint
• Cash and cash equivalents (e.g., $531 million as of Q2 FY25)
• A commitment to a 25 percent SKU count reduction
• Specific premium product pricing, such as a $140 backpack

Finance: draft 13-week cash view by Friday.

Under Armour, Inc. (UA) - Canvas Business Model: Value Propositions

You're looking at the core reasons why an athlete chooses Under Armour, Inc. (UA) gear right now, late in 2025, as the company works through its reinvention under founder Kevin Plank.

Innovative, high-performance athletic apparel and footwear remains the foundation. The company is focused on launching what they call 'pinnacle defining products' at higher price points to elevate the brand stance. For fiscal year 2025, total revenue was reported at $5.2 billion, a 9 per cent year-over-year decline, which management links to purposeful steps like reducing promotions to strengthen brand health indicators like gross margin. In Q4 of fiscal 2025, the gross margin increased by 170 basis points to 46.7 per cent. Specific product momentum in Q4 FY2025 included the HeatGear base layers and the Unstoppable collection in apparel, alongside encouraging signs from the Curry Brand and Velociti Elite footwear designs.

The value proposition of superior athlete comfort and dryness is rooted in historical material science. The company introduced its now-famous ColdGear® fabric in 1997, which keeps athletes warm, dry, and light in cold conditions. That same year, 1997, the company also invented AllSeasonGear®. This technology focus continues, with management noting they cut materials by 30 per cent for their 2025 products, aiming to lower costs and support innovation-driven design.

Brand association is being actively rebuilt, with plans for the company's most significant marketing effort to date in 2025. The brand leverages relationships with elite athletes, though the partnership with Stephen Curry saw the Curry Brand transition into an independent entity by November 2025. The core mentality remains the underdog spirit that fueled its initial growth.

The vision is to become a global Sports House offering head-to-toe outfitting. This is supported by a strategic shift away from a gym-first approach toward emphasizing team sports. This focus includes American and global football, basketball, baseball, and volleyball, while also integrating a women's-centered approach into category management.

A key action driving focus is the simplified, more focused product assortment. The company is executing a plan to cut the SKU count by 25 per cent over an 18-month period, which started around May 2024. This streamlining is intended to reduce workloads and allow teams to focus on making excellent products. The reduction in promotional activity, which contributed to the SKU focus, saw e-commerce revenue drop by 23 per cent in FY2025.

Here's a quick look at how these strategic shifts map to recent financial performance indicators:

The focus on premiumization and product quality is also reflected in material cost management. Management stated they cut materials by 30 per cent for their 2025 products.

The value proposition is supported by these operational changes, which are designed to create a sharper, more focused brand blending sports, style, and innovation with financial discipline.

• Focus shift to team sports: American football, global football, basketball, baseball, volleyball.
• Product engine prioritized: HeatGear base layers, Unstoppable collection, Curry Brand, Velociti Elite.
• Distribution tightening: Wholesale revenue down 8 per cent in FY2025, DTC down 11 per cent.

Finance: draft 13-week cash view by Friday.

Under Armour, Inc. (UA) - Canvas Business Model: Customer Relationships

You're looking at a customer relationship strategy that's clearly pivoting from broad-based volume to quality and brand elevation, which you see reflected in the numbers for fiscal year 2025 (FY2025). The brand is actively managing its relationships to be more premium, even if that means short-term revenue contraction.

Dedicated athlete sponsorship and ambassador programs

Under Armour, Inc. maintains deep, high-value relationships with marquee athletes, which serve as a cornerstone for brand credibility and product validation. These are not just simple endorsements; they are often long-term, multi-faceted partnerships. For example, the relationship with Stephen Curry is a lifetime deal valued at $215 million, which also includes an equity stake in the company, and his signature line has reportedly generated over $1 billion in sales. Other key relationships include Bryce Harper, whose deal is valued at approximately $6.5 million annually, and Jordan Spieth, reportedly earning about $8 million per year. Even in a year of strategic contraction, these relationships are critical assets, with the brand showing a commitment to high-impact figures like Anthony Joshua, whose deal is estimated at $5 million per year.

Self-service via e-commerce and mobile apps

The self-service channel, encompassing e-commerce and mobile apps, is a primary focus for direct consumer interaction, though FY2025 saw a deliberate pullback on promotions here to protect brand value. For the full fiscal year 2025, the Direct-to-Consumer (DTC) channel accounted for 40% of total net revenues, bringing in $2.1 billion of the total $5.2 billion revenue. Within that DTC segment, the e-commerce portion saw a significant drop of 23% for the year, as management intentionally reduced promotional activities. To be fair, this strategy is about shifting the relationship from a transactional, discount-driven one to one based on full-price product desirability. Here's a quick look at the DTC channel split for FY2025:

The mobile app experience is integral to this self-service relationship, aiming to provide a seamless path to purchase and product discovery, which is why the e-commerce drop was so pronounced when promotions were cut.

Transactional relationships with wholesale partners

The wholesale channel remains the largest revenue driver, representing a more traditional, transactional relationship based on volume and distribution breadth. In fiscal year 2025, Wholesale revenue was $3.0 billion, making up 58% of Under Armour, Inc.'s total net revenues. This channel saw an 8% year-over-year decline, which is less severe than the e-commerce drop, suggesting that while the brand is tightening distribution, the core wholesale partners still move significant volume. No single customer accounted for more than 10% of the Company's net revenues for Fiscal 2025, indicating a diversified, albeit transactional, partner base.

Targeted digital marketing to re-engage the consumer

The strategy involves using digital channels surgically to re-engage consumers who value performance over price, moving away from the broad promotional activity that characterized past DTC performance. The planned reduction in e-commerce promotions in FY2025, which caused a 23% drop in that revenue stream, is the clearest action showing this shift in relationship management. The company had a marketing budget exceeding $0.5 billion plus in fiscal 2025, but the focus was on spending it more precisely, aiming for a major campaign in 2025 to amplify brand relevance, rather than simply driving transactions through discounts.

Community building around team sports and training

Under Armour, Inc. is intentionally focusing its community efforts on the 'sharp point and epicenter of our connection with young athletes,' which is team sports. This is a relationship-building strategy rooted in authenticity and performance heritage. While specific community engagement metrics aren't always public dollar amounts, the CEO noted the ambition to strengthen this 'sports house both one day and athlete at a time.' This implies investment in grassroots, team-level support and training communities to foster long-term loyalty, rather than just mass-market advertising.

Finance: draft 13-week cash view by Friday.

Under Armour, Inc. (UA) - Canvas Business Model: Channels

You're looking at how Under Armour, Inc. (UA) gets its performance gear into the hands of athletes and consumers as of late 2025. The channel strategy is clearly focused on a mix of traditional and direct routes, though the direct path saw significant strategic pruning in the last year.

Here is the breakdown of the key channels used by Under Armour, Inc. based on Fiscal Year 2025 (FY25) financial data:

• Wholesale distribution to key sporting goods and department stores, which accounted for $3.0 billion in FY25 net revenues.
• Direct-to-Consumer (DTC) via owned and operated Brand and Factory House stores.
• E-commerce platform (UA.com) for direct sales and brand control.
• International distributors and licensees in specific regions, which represented 2% of net revenues via licensing in FY25.
• Team sports channel for institutional sales to schools and leagues, which is included within the wholesale channel.

The company's total net revenues for Fiscal 2025 were $5.2 billion, and the distribution across the main revenue-generating channels looked like this:

The DTC segment itself is a mix of physical retail and digital sales, reflecting a strategic shift away from heavy promotion online. For the full fiscal year 2025:

• Revenue from owned and operated stores decreased by 2%.
• E-commerce revenue dropped by 23%, a result of planned reductions in promotional activities.
• E-commerce sales made up 35% of the total DTC business for the year.

Geographically, the channels serve two main segments. North America remains the largest market, accounting for approximately 60% of net revenues in FY25, totaling $3.1 billion. The International business, comprising EMEA, Asia-Pacific, and Latin America, made up the remaining 40%, or $2.1 billion.

To be fair, the DTC channel saw a sharper decline in Q4 FY25, with DTC revenue falling 15% year-over-year, where owned and operated stores were down 6% and e-commerce plunged 27%.

Under Armour, Inc. (UA) - Canvas Business Model: Customer Segments

You're looking at the core audience Under Armour, Inc. is trying to serve right now as they go through their strategic reset. The customer base is segmented, but the focus remains on those who demand technical performance from their gear.

Serious athletes and fitness enthusiasts seeking performance gear remain the bedrock. This audience values innovation and discipline, which Under Armour, Inc. is trying to amplify through its current transformation. The company is shifting its focus from a 'gym first approach' to a stronger emphasis on team sports, specifically mentioning American and global football, basketball, baseball, and volleyball.

The core demographic for Under Armour, Inc. has historically been concentrated in the 18-34 age group, encompassing college students, young professionals, and emerging athletes who are highly engaged digitally and prioritize personal progress. This group is the primary target for performance-enhancing products like UA RUSH.

The company is actively working to grow its appeal within the women's apparel and footwear market, which is a key area of focus for future growth. As of early 2024, women's products made up less than 25% of the business, though the company has committed to pursuing this segment 'harder than this company has ever seen.' For context, sales of Under Armour, Inc. women's apparel were reported at $3.8 billion in 2023.

While the performance focus is central, Under Armour, Inc. also serves casual wear consumers seeking athletic-inspired lifestyle products, though the current strategy appears to be tightening distribution to enhance brand presentation and premium positioning. This is reflected in the planned reduction in promotional activity, which impacts the direct-to-consumer channel, where eCommerce revenue dropped 27% in the fourth quarter of fiscal 2025.

Geographically, the customer base is global, but heavily weighted toward the core market. The North America segment is the largest by far, which is critical to watch during this period of repositioning.

Here's the quick math on the geographic segmentation for the full fiscal year 2025:

The North America segment saw its revenue decline by 11% to $3.1 billion for the full fiscal year 2025. In contrast, the International business fell 6% currency neutral to $2.1 billion. Within International for the full year 2025, EMEA revenue was flat, Asia-Pacific declined 13%, and Latin America declined 6% (flat currency neutral).

The company's overall customer base is being managed through a refined distribution strategy, aiming for higher-quality growth across all channels. The customer segments Under Armour, Inc. is prioritizing for connection include:

• Dedicated athletes valuing technical performance.
• Young team sports participants (16-24 age range).
• Female athletes targeted through a women's-centered approach.
• Consumers seeking athletic-inspired lifestyle gear.

The full fiscal year 2025 ended with total net revenues at $5.2 billion, alongside a reported net loss of $201.3 million. This financial outcome underscores the challenge in maintaining the existing customer base while executing the brand's 'bold reinvention.'

Finance: draft 13-week cash view by Friday.

Under Armour, Inc. (UA) - Canvas Business Model: Cost Structure

You're looking at the core expenses that make up the cost side of the Under Armour, Inc. business model as of late 2025. Honestly, these numbers show where the dollars are going to keep the global operation running and trying to get back to stronger margins.

Cost of Goods Sold (COGS), including raw materials and manufacturing labor

The Cost of Goods Sold reflects the direct costs tied to making and acquiring the products Under Armour, Inc. sells. For the full fiscal year 2025, which ended on March 31, 2025, the COGS was reported at $2,689,566 thousand, or approximately $2.690 billion. This represented 52.1% of the total net revenues for that fiscal year. Looking just at the fourth quarter of fiscal 2025, COGS was $629,801 thousand, making up 53.3% of that quarter's net revenues.

Here's a quick look at the recent COGS figures:

Selling, General, and Administrative (SG&A) expenses, including marketing and payroll

SG&A covers the overhead, the selling efforts, and the people running the company. For the entirety of fiscal year 2025, these expenses totaled $2,601,991 thousand, or about $2.602 billion. As a percentage of net revenues for the full year, SG&A stood at 50.4%. In the fourth quarter of fiscal 2025, SG&A was $607,133 thousand, representing 51.4% of that period's revenue. You should note that marketing investments were a primary driver for an increase in SG&A during the third quarter of fiscal 2025.

Restructuring and impairment charges (up to $255 million total estimated charges)

The ongoing restructuring plan, aimed at operational efficiencies, has a significant cost component. The total expected pre-tax charges for the Fiscal 2025 restructuring plan have been expanded to up to $255 million. As of September 30, 2025, Under Armour, Inc. had already incurred approximately $147 million in these restructuring-related charges. The charges incurred by the end of the fourth fiscal quarter of 2025 (March 31, 2025) totaled $58 million in restructuring and impairment charges, plus $31 million in other related transformational expenses under the plan up to that point.

The breakdown of the total estimated charges includes:

• Up to $107 million in cash-related charges.
• Up to $148 million in non-cash charges, including asset impairments.

Logistics and freight costs for global distribution

Logistics costs are a key variable impacting gross margin. Outbound freight costs, which are costs for shipping goods to customers, are included within COGS. However, the majority of outbound handling costs, which cover preparing goods to ship and certain distribution facility operations, are recorded in SG&A. These outbound handling costs totaled $78.0 million for Fiscal 2025. Reductions in freight costs have been cited as a benefit contributing to gross margin improvement.

Research and Development (R&D) for product innovation

Research and Development expenses represent the investment in future product lines and technology. This cost category is essential for maintaining the brand's relevance in sport. While the specific dollar amount for the full fiscal year 2025 is a component of operating expenses, the precise figure is not explicitly detailed in the latest public filings reviewed here, so I can only list the category.

R&D is a cost driver focused on:

• Elevating product quality and storytelling.
• Supporting key product lines like the Curry Brand.

Finance: draft 13-week cash view by Friday.

Under Armour, Inc. (UA) - Canvas Business Model: Revenue Streams

You're looking at how Under Armour, Inc. actually brings in the cash, which is always the clearest indicator of brand health and strategy execution. As of late 2025, the revenue streams are clearly segmented by product category and by sales channel. We need to map these out precisely to see where the focus is shifting, especially given the ongoing brand reset.

The product mix shows where the dollars are landing. Apparel remains the bedrock of the business, though we're seeing shifts in the mix as the company refines its offerings. Footwear still represents a substantial, though smaller, piece of the pie.

Here's the quick math on the product revenue streams for Fiscal Year 2025:

Now, looking at the channels, the split between selling through partners versus directly to you, the consumer, tells a story about control and margin. The push to grow Direct-to-Consumer (DTC) is evident, aiming for better brand presentation and pricing power, which helped gross margin improve in FY25.

The channel breakdown for FY25 revenue streams looks like this:

• Wholesale revenue from retail partners: $3.0 billion in FY25
• Direct-to-Consumer (DTC) sales from stores and e-commerce: $2.1 billion in FY25

To give you a full snapshot of these key revenue drivers for the fiscal year ending March 31, 2025, here is the consolidated view. This total revenue figure, around $5.1 billion based on these components, reflects the overall revenue dip experienced during the year.

It's worth noting that within the DTC stream, the company has been strategically reducing promotional activities, which impacts the top-line number but supports the gross margin improvement seen in the period. Also, North America remains the largest geographic contributor, accounting for approximately 60% of net revenues for Fiscal 2025.