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

You're looking at Under Armour, Inc. right now, and honestly, the picture is one of a company deep in a strategic reset, making the classic Boston Consulting Group Matrix a fascinating lens for analysis. We're seeing the massive $3.5 billion Apparel segment act as the Cash Cow, funding a necessary battle in the crucial North America market, which is currently a Dog with an 11% revenue drop last year. Meanwhile, the future hinges on turning high-potential areas like Footwear-a Question Mark despite a 13% revenue decline-into Stars, alongside the EMEA region's current positive momentum. Dive in below to see exactly where management needs to invest, hold, or divest to make this turnaround stick.

Background of Under Armour, Inc. (UAA)

You're looking at the current state of Under Armour, Inc. (UAA) as of late 2025, so let's ground ourselves in the facts from their most recent reporting periods. Under Armour, Inc. was started way back in 1996 by Kevin Plank, the former University of Maryland football captain, right out of a truck in Baltimore, MD, which is still the global headquarters location. The company develops, manufactures, markets, and distributes its own performance gear, including apparel, footwear, and accessories for men, women, and youth. It's a sports house rooted in the belief that performance products needed improvement for athletes who earn their shot through hard work.

The company is currently deep into a strategic reset, which CEO Kevin Plank describes as laying the groundwork for a more focused Under Armour to achieve sustainable, profitable growth. This involves elevating products, tightening distribution, and refining the operating model. The strategy centers on four pillars: Product, Story, Service, and Team, with a strong emphasis on technical innovation to differentiate itself from rivals. This focus on premium positioning has been a key theme throughout fiscal year 2025.

Looking at the full fiscal year 2025 results, which ended on March 31, 2025, total revenue came in at $5.2 billion, representing a decline of 9% year-over-year on both a reported and currency-neutral basis. This resulted in a net loss of $201.3 million, a significant shift from the net income of $232.0 million reported the prior year. North American revenue, the largest segment, decreased by 11% to $3.1 billion, while international revenue fell 6% (currency neutral down 5%) to $2.1 billion. EMEA was the strongest international region in fiscal 2025, showing flat results currency neutral.

Breaking down the product categories for the full fiscal year 2025, apparel revenue fell 9% to $3.5 billion, and footwear revenue declined 13% to $1.2 billion. On a positive note, accessories revenue actually saw a small bump, rising 1% to $411 million. Despite the revenue contraction, the company managed to strengthen its gross margin, which is a clear financial indicator of brand health, driven by reduced discounting in the direct-to-consumer business and supply chain benefits. Inventory levels were actively managed, ending the year down 1% at $946 million.

More recently, the second quarter of fiscal 2026 (ended September 30, 2025) showed mixed results, with total revenue decreasing 5% to $1.3 billion. North American revenue continued its downward trend, declining 8% to $792 million. However, international revenue grew by 2%, with EMEA showing high growth at 12%. Mr. Plank noted that this quarter brought encouraging signs of brand momentum in North America, which is an important milestone for the turnaround efforts. The company is also executing a three-year, $500 million share buyback program approved in May 2024, and is managing costs under a restructuring plan announced in May 2024, estimated to cost up to $160 million.

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

Stars in the Boston Consulting Group Matrix represent business units or products with a high market share in a high-growth market. These areas consume significant cash to maintain their leadership position but are crucial for future Cash Cow status once market growth slows. For Under Armour, Inc. (UAA), the Star candidates are identified through recent regional performance and specific product category momentum.

The EMEA Region is currently exhibiting the strongest growth trajectory, positioning it as a key Star area requiring continued investment to solidify market leadership.

• EMEA revenue in the First Quarter of Fiscal 2026 (ended June 30, 2025) increased 10 percent year-over-year to $248.6 million.
• The First Quarter of Fiscal 2026 outlook projected high single-digit percentage growth for EMEA.
• This growth contrasts with the overall global trend, where total revenue for Q1 Fiscal 2026 declined 4 percent to $1.1 billion.
• The operating margin in the EMEA region climbed from 9.0 percent in the previous year to 15.9 percent in Q1 Fiscal 2026.

Performance Apparel Innovation, anchored by core technical lines like HeatGear, represents the foundation of the business, where Under Armour, Inc. is seeking to re-establish premium positioning, which is a classic Star strategy to defend market share against slowing growth.

The Accessories Segment, despite being the smallest category, demonstrated resilience and positive growth in the full Fiscal 2025 period, suggesting it is successfully defending its niche share in a potentially growing or stable market.

• Accessories revenue for the full Fiscal 2025 increased 1 percent to $411 million.
• This was the only major product category to post positive growth for the full Fiscal 2025 year.
• In the First Quarter of Fiscal 2026, Accessories revenue grew 8 percent to $100 million.

Curry Brand Footwear is a segment Under Armour, Inc. has prioritized for brand elevation, aiming to capture high-share growth in the premium basketball space, even as the overall Footwear category faces pressure. This prioritization aligns with the Star investment thesis, though recent developments suggest a strategic pivot.

The Curry Brand, which was established as a distinct entity with Stephen Curry as President in 2023, accounted for just 2 percent of Under Armour, Inc.'s total sales. The company's stated focus on brand elevation and premium pricing in this area is the investment required of a Star, even as the partnership with Stephen Curry was announced to end in November 2025.

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

You're looking at the core engine of Under Armour, Inc. (UAA) right now, the segment that funds the rest of the portfolio moves. These are the established businesses that command a high market share in markets that aren't expanding rapidly anymore. They generate more cash than they need to stay competitive, which is exactly what you want from a Cash Cow.

Apparel Segment: This is the bedrock of Under Armour, Inc.'s top line. For Fiscal 2025, this segment was the largest revenue driver, accounting for 67% of net revenues. That translated to $3.5 billion in revenue for the full fiscal year. It's a mature category, but its sheer size makes it the primary source of stable cash generation.

Core Wholesale Business: This channel provides the bulk of immediate cash flow, even as Under Armour, Inc. strategically tightens distribution. In the fourth quarter of Fiscal 2025, the wholesale revenue decreased by 10% year-over-year, coming in at $768 million. This decline reflects the company's move to reduce promotional activity, a classic Cash Cow tactic to protect margins over volume.

Improved Gross Margin: The strategic focus on reducing discounting is clearly paying off in profitability per unit sold. For the full Fiscal 2025, the gross margin saw a significant improvement, rising 180 basis points to reach 47.9%. This move maximizes the cash generated from every sale, which is the goal when milking a mature business line.

The financial performance supporting this Cash Cow status can be summarized here:

Established Team Sports Category: This represents a legacy strength for Under Armour, Inc. in uniforms and gear, which typically translates to high market share in a stable segment. While specific category revenue isn't isolated, the overall Accessories revenue, which includes team sports elements, saw a 2% rise in Q4 Fiscal 2025, showing some underlying strength. These areas generate reliable revenue streams that require minimal heavy investment in new market penetration.

You can see the focus is on efficiency and cash extraction, not aggressive growth spending:

• Focus on reducing discounting to protect margin.
• Full-year gross margin improved by 180 basis points.
• Q4 eCommerce sales dropped 27% as part of the strategy.
• The Apparel segment remains the largest contributor at $3.5 billion.
• The company is using cash to support other areas, like the share repurchase program of $25 million in Q4.

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

You're looking at the parts of the Under Armour, Inc. portfolio that are stuck in low-growth markets and carry a low market share. These are the units that tie up capital without offering much in return, making divestiture a prime consideration. Expensive attempts to turn these around often don't pay off, so the focus here is on minimizing exposure.

The regional performance clearly illustrates where the company has significant challenges in mature or declining segments, fitting the Dog profile perfectly. Consider the North America Region, which is the largest market but shows clear signs of contraction, indicating low growth potential for the current offering.

The Asia-Pacific Region presents another clear Dog scenario, characterized by low growth and significant headwinds leading to revenue contraction in the last full fiscal year.

• Asia-Pacific Region Revenue Decline (Fiscal 2025): 13%.
• The company's Q1 Fiscal 2026 outlook anticipates a mid-teen percent rate decline in the Asia-Pacific region.

Within the Direct-to-Consumer (DTC) segment, the E-commerce Channel shows short-term weakness directly tied to the strategic move to reset brand image by cutting promotions. This aggressive discounting reduction, while beneficial for margin health, highlights the low-share, low-pricing power of that specific channel mix.

• E-commerce Channel Revenue Drop (Q4 Fiscal 2025): 27%.
• For the full Fiscal 2025 year, e-commerce revenue dropped 23%.
• This channel accounted for 35% of the total DTC business for the full Fiscal 2025 year.

The effort to eliminate Undifferentiated, Promotional SKUs is a direct action against the Dog category-products that dilute brand value by relying on heavy discounting to move volume. This is a necessary pruning to stop cash from being trapped in low-margin inventory.

• The company is actively cutting 25% of its total product SKUs.
• This reduction targets low-margin, high-discount items that dilute brand equity.
• The company expects to complete the SKU reduction over the next 18 months from the initial announcement.

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

These business units are characterized by high growth prospects within their respective markets but currently hold a low market share for Under Armour, Inc. They are cash consumers, demanding significant investment to capture market share before they risk becoming Dogs.

The strategic imperative for these Question Marks is clear: invest heavily to rapidly scale market penetration or divest if the potential for conversion to a Star is deemed too low. The current financial snapshot for Fiscal 2025 shows these areas are actively consuming resources as part of the brand reset strategy.

The investment in the DTC channel, intended for premium positioning, is currently showing significant cash burn reflected in its top-line performance. For the full fiscal year 2025, DTC revenue was $2.1 billion, a 11% decrease.

The DTC channel's struggles in the final quarter were pronounced:

• E-commerce sales dropped 27% in Q4 FY25.
• Owned and operated store sales fell 6% in Q4 FY25.
• E-commerce represented 37% of the total DTC business for the quarter.

The Footwear segment is a major area requiring capital to reverse negative momentum. For the full year of Fiscal 2025, footwear revenue was $1.2 billion, down 13%. This signals a substantial need for investment to gain traction in a growing global athletic footwear market.

Women's Apparel is a stated strategic priority for CEO Kevin Plank to drive future growth, aiming to 'elevate' the business. While the overall Apparel segment revenue for the full year was $3.5 billion, a 9% drop, the specific performance of the Women's category within that decline dictates the scale of the required investment.

The Latin America region presents a high-risk, high-reward scenario. Full-year Fiscal 2025 results showed a 6% revenue decline on a currency-neutral basis, the region was flat. However, the fourth quarter was volatile:

• Q4 FY25 revenue decreased 10.3% year-over-year.
• On a currency-neutral basis, Q4 FY25 Latin America revenue was up 3%.

The company's overall cash position at the end of Q4 FY25 was $501 million in cash and cash equivalents, with no outstanding borrowings under the $1.1 billion revolving credit facility. This liquidity is what funds the necessary heavy investment into these Question Mark areas.