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

You're looking to understand the core engine of Under Armour, Inc. (UAA) as they execute their tough but necessary brand reset, moving away from heavy promotions to focus on premium gear, supported by big names like Stephen Curry. Honestly, this shift from volume to value is defintely key to valuing the stock right now, and the numbers show the strain and the strategy: wholesale still drives $3.0 billion while Direct-to-Consumer pulls in $2.1 billion in Fiscal 2025, all while they manage a $500 million marketing budget to build that premium feel. Let's break down the nine blocks of their late-2025 operating model below to see exactly how they plan to make this premium vision stick.

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

You're looking at the structure of Under Armour, Inc.'s (UAA) key alliances as of late 2025. These partnerships are critical for brand visibility and product development, so let's look at the hard numbers we have on these arrangements.

Athlete Endorsements

The value tied up in top-tier athlete endorsements remains a significant part of Under Armour, Inc.'s strategy, though recent developments with one major partner bear noting.

• Stephen Curry's previous annual deal was reportedly worth $20 million.
• A reported lifetime contract extension for Stephen Curry, agreed upon around 2022, was potentially worth more than $1 billion and included 8.8 million Under Armour common shares valued at $75 million at that time.
• As of November 2025, Under Armour, Inc. and Stephen Curry announced they had ended their agreement prematurely.
• Stephen Curry is set to earn a base salary of $59,606,817 from the Golden State Warriors for the 2025-26 NBA season.
• The dedicated Curry Brand division is estimated to approximate $100 million to $120 million in revenue for fiscal year 2026.
• Dwayne Johnson's Project Rock partnership is reported to bring in $25 million annually.
• A Project Rock BSR 4 Training Shoe was listed at $100 before a sale price of $54 was noted in February 2025.
• Jordan Spieth reportedly earns an estimated $30 million annually from endorsements as of early 2025.
• Jordan Spieth's current endorsement contract with Under Armour, Inc. runs through 2029.

Collegiate Sponsorships

Under Armour, Inc. has been strategically pruning its college portfolio, focusing on high-value, long-term relationships. The University of Wisconsin deal is one of the latest major commitments.

The company has exited partnerships with schools including UCLA, Cincinnati, Hawaii, Auburn, and California.

Uniform Licensees and Innovation Research

Specific financial figures for the uniform licensees, BSN SPORTS and Momentec Brands, are not publicly detailed in recent filings. Similarly, the exact financial commitment for the innovation research partnership with Notre Dame for materials and data analytics is not itemized in the latest disclosures.

Global Manufacturing

The scale of Under Armour, Inc.'s third-party supplier network for production and sourcing is not quantified with a specific number of partners or a percentage of total production in the latest financial statements.

The company's fiscal 2025 restructuring plan, announced in May 2024, had incurred up to $147 million in charges as of September 30, 2025, with $82 million being cash-related.

Finance: review the Q4 2025 SG&A breakdown to isolate marketing spend related to remaining athlete/school contracts by next Tuesday.

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

You're looking at the core actions Under Armour, Inc. (UAA) is taking right now to reset its business, which is a heavy lift involving significant financial commitments. The focus is sharp: elevate the brand while cutting complexity and cost.

Product Innovation

The activity here centers on delivering a product assortment that justifies a premium price point, which is a major shift in focus. This effort is supported by aggressive internal streamlining.

• Cut materials by 30% for 2025 products to lower costs and support design.
• Goal to reduce the overall product count, aiming for a 25% SKU reduction.
• The Fall 2025 lineup is described as the company's "most significant and impactful activation" yet.

Brand Repositioning

This is about moving away from chasing volume through constant sales and toward building lasting brand equity. It requires a significant marketing push to tell the new story.

Under Armour, Inc. announced an additional investment of $25 million in marketing during the second quarter of fiscal 2025 to solidify its premium brand positioning. The strategy involves launching "pinnacle defining products" at higher price points.

Here's a look at the financial impact of the brand reset efforts through Q3 Fiscal 2025:

Marketplace Management

Disciplined distribution is the mechanism used to enforce the premium repositioning. This means actively choosing to sacrifice some sales volume to protect brand perception and margin.

The company is focused on dramatically reducing promotions and simplifying its presentation to athletes and customers. This approach led to a reported 20% decrease in eCommerce revenue in the third quarter of fiscal 2025 due to planned promotional cuts.

Supply Chain Efficiency

Optimizing logistics is a direct lever for reducing costs, which helps offset other pressures like tariffs. The company is modernizing its supply chain with a multiyear distribution logistics initiative.

The sourcing footprint is being actively managed for balance:

• 30% of goods sourced from Vietnam.
• 20% of goods sourced from Jordan.
• 15% of goods sourced from Indonesia.

These efficiency actions, including SKU reduction, generated $35 million in savings in fiscal 2025, with a further $45 million expected in fiscal 2026.

Restructuring Execution

The Fiscal 2025 restructuring plan has been expanded. While the initial scope mentioned up to $160 million in pre-tax charges, the Board approved an additional $95 million in actions, bringing the total estimated restructuring and related charges to up to $255 million. The plan is expected to be substantially complete by the end of fiscal year 2026.

Here is the breakdown of the total estimated charges as of the November 2025 update:

The cash-related charges include approximately $34 million for employee severance and benefits costs. Finance: draft 13-week cash view by Friday.

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

Brand equity: Association with performance, grit, and the underdog spirit.

• Rallying cry for resilience, grit, and self-belief, reinforcing the underdog spirit.
• Recommitment to roots supporting athletes who earn their shot through hard work.
• The brand is focused on innovation, performance, and authenticity.

Endorsed athletes: High-profile figures driving product line sales and visibility.

• Stephen Curry partnership reportedly generated over $1 billion in sales.
• Jordan Spieth endorsement increased golf segment revenue by $200 million.
• Tom Brady deal estimated at $10 to $15 million annually, mostly in stock.
• The partnership with Stephen Curry ended on November 13, 2025.
• Current associations include Justin Jefferson and Achraf Hakimi.

Intellectual property: Proprietary fabric technologies like HeatGear and ColdGear.

• ColdGear: Baselayer clothing for cold weather to stay warm, wicks sweat, and has 4-way stretch material.
• ColdGear Infrared technology: Retains body heat without adding weight or bulk via a soft print on the inside.
• HeatGear: Fabric designed to keep you cooler in the heat, using flat yarn to disperse body heat.
• UA Storm technology: Signature water-repellent innovation that keeps users dry without sacrificing breathability.

Global distribution network: Wholesale and Direct-to-Consumer (DTC) channels worldwide.

• Net revenues for Fiscal 2025 were split with 58% from wholesale and 40% from DTC.
• The business operates across four geographic segments: North America, Europe, the Middle East and Africa (EMEA), Asia-Pacific, and Latin America.
• DTC sales include Brand House stores, Factory House stores, and e-commerce websites.
• Factory House stores serve a role in inventory management for excess and out-of-season products.

Financial capital: Cash and equivalents of $885 million as of Q1 Fiscal 2025.

• Cash and cash equivalents were $885 million at the end of the first quarter of Fiscal 2025.
• Cash and cash equivalents were reported as $396 million as of September 2025.
• The company had no borrowings outstanding under its $1.1 billion revolving credit facility as of Q1 Fiscal 2025.
• Under Armour announced a $500 million stock repurchase plan in May 2024.

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

Performance-enhancing gear: Technical apparel engineered to regulate body temperature and improve performance, with HeatGear base layers continuing to deliver in fiscal 2025. The brand originally rose to fame for its 'sweat wicking' fabric technology across its performance apparel.

Premium product quality: The strategy centers on regaining pricing power, which is a critical signal of brand health. The gross profit margin for the last twelve months ending Q3 Fiscal 2025 was reported at 47.9%, an improvement driven by reduced discounting. Under Armour is focusing on selling more premium products, exemplified by a new backpack developed with a price point roughly $80 to $100 more expensive than the typical product in that category, with some premium items priced around $140.

Underdog brand identity: The core narrative is rooted in serving athletes who earn their shot through hard work, grit, and resilience, not luck or legacy. This spirit is alive and well as Under Armour commits to its identity as a globally relevant Sports House. The brand actively engages its positioning infused with resilience and grit as part of its storytelling pillar.

Streamlined assortment: The company is executing a deliberate strategy to simplify and sharpen its offerings by focusing on fewer, high-quality products. By May 2024, Under Armour had already reduced its product SKUs by 25% as part of this effort to improve the assortment. The forward-looking plan is to launch between four and six products per season.

The financial scale of the product categories for the full Fiscal Year ended March 31, 2025, shows the core focus areas:

The North America segment, which is undergoing a reset, accounted for approximately 60% of net revenues for Fiscal 2025, with United States sales at $2.8 billion.

The strategic focus on discipline and quality is reflected in the financial management of the turnaround plan:

• Total estimated pre-tax restructuring charges for the plan were between $140 million and $160 million.
• Charges recognized under the plan by the end of the fourth fiscal quarter of 2025 totaled $89 million.
• The company saw promising growth in specific areas, including women's bras and bottoms in fiscal 2025.
• Accessories revenue in the third quarter of fiscal 2025 was up 6% to $110 million.

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

You're looking at how Under Armour, Inc. is connecting with its customers right now, post-strategic reset. The focus has clearly shifted to brand equity over volume-driven sales, which you see reflected in the numbers around promotions and who they put in front of the camera.

Digital engagement: Utilizing apps and social media for community building and training.

While specific metrics on app adoption or community engagement aren't always broken out in the top-line reports, the investment in digital channels is clear from the marketing spend allocation. The company is using digital to amplify its storytelling efforts, which is a key part of the relationship strategy.

• Under Armour allocates an estimated 60% to 70% of its total marketing budget to digital marketing channels.
• The brand continues to use social media platforms to promote its products and athlete partnerships.

Premium experience: Enhancing Brand House and eCommerce for full-price sales.

The push for a more premium feel means tightening up distribution and prioritizing full-price transactions, especially through Direct-to-Consumer (DTC) channels like its own stores and eCommerce. This strategy directly impacts the gross margin, which is a key financial indicator of pricing power.

For the full fiscal year 2025, Under Armour, Inc. achieved a gross margin of 47.9%, marking an uptick of 180 basis points compared to the prior year. This margin improvement is directly linked to the strategic shift away from heavy promotions.

Looking specifically at the DTC channel, the commitment to this premium experience came at the cost of immediate sales volume:

Athlete-led storytelling: Marketing campaigns featuring endorsers to build affinity.

The relationship strategy heavily relies on its roster of elite athletes to build brand affinity and authenticity. You see this commitment in the multi-million dollar deals that fuel major marketing campaigns. CEO Kevin Plank noted in February 2025 that the company would enter a 'pivotal new chapter in our marketing strategy by launching a dynamic, multi-year initiative of storytelling.'

Here's a look at some of the key financial commitments to these relationship drivers:

Beyond these marquee names, Under Armour, Inc. is estimated to spend between $20 million to $50 million annually on broader influencer marketing efforts to reach wider audiences.

Reduced discounting: Strategic shift to limit promotions and build long-term brand value.

This is the most financially quantifiable part of the customer relationship strategy for late 2025. The deliberate move to reduce markdowns is a direct lever to improve brand perception and gross margin, even if it pressures top-line revenue growth in the short term. The results for fiscal year 2025 show this trade-off in action.

The company's full-year fiscal 2025 gross margin improved to 47.9%, which was attributed in part to a 'decrease in direct-to-consumer discounting.' This discipline was evident across the year's reporting periods:

• In Q2 FY25, e-commerce revenue fell 21% due to planned promotional cuts, which represented 30% of DTC for that quarter.
• In Q3 FY25, e-commerce revenue dropped 20% due to deliberate reductions, making up 39% of the quarter's DTC revenue.
• For the full fiscal year 2025, the 23% drop in eCommerce revenue was explicitly tied to these planned promotional reductions.

Finance: draft 13-week cash view by Friday.

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

You're looking at how Under Armour, Inc. gets its products into the hands of athletes and consumers as of late 2025. The channel strategy is clearly split between moving volume through partners and capturing full-price realization directly.

The total net revenues for Fiscal 2025 reached approximately $5.2 billion. Under Armour, Inc. reported that sales through its wholesale channel represented 58% of net revenues for Fiscal 2025, while the Direct-to-Consumer (DTC) channel accounted for 40%, with licensing making up the remaining 2%.

Here is a breakdown of the key channel performance metrics for the full Fiscal Year 2025:

The Direct-to-Consumer segment is a mix of physical and digital presence, which is critical for brand control. You see a clear strategic pullback on promotions impacting the digital side.

The international business, which includes EMEA, Asia-Pacific, and Latin America, represented approximately 40% of net revenues for Fiscal 2025, with North America accounting for the other 60%. International revenue for the full year fell 6% to $2.1 billion.

The specific components of the DTC channel show this promotional tightening:

• E-commerce platform: Online sales saw a significant 23% decline in Fiscal 2025 due to planned reductions in promotional activities.
• E-commerce accounted for 35% of the total Direct-to-Consumer business for the full year FY2025.
• Owned retail stores: Revenue from owned and operated stores decreased 2% in the fourth quarter of FY2025.

For the owned retail stores, the physical footprint as of March 31, 2025, in North America included:

• 180 Factory House stores.
• 15 Brand House stores.

International distribution performance varied across the regions during the fourth quarter of FY2025:

• EMEA: Revenue was flat on a currency-neutral basis.
• Asia-Pacific: Revenue declined 27% (26% currency neutral).
• Latin America: Revenue declined 10% (flat currency neutral).

Finance: draft 13-week cash view by Friday.

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

You're looking at the core groups Under Armour, Inc. (UAA) targets as it executes its strategic reset. The company's focus is on performance, which naturally segments its audience by athletic commitment and demographic profile. For the full fiscal year 2025 (FY2025), Under Armour, Inc. reported total net revenues of \$5.2 billion.

The primary customer base is defined by their need for technical gear, which is reflected in the product revenue mix for FY2025:

The North America segment, which houses the bulk of these customers, accounted for approximately 60% of net revenues, or \$2.8 billion in FY2025.

Performance athletes: Professional, collegiate, and high school team sports participants.

This group is the historical bedrock of Under Armour, Inc.'s brand identity, prioritizing high-performance functionality. The company noted encouraging signs in footwear for team sports, specifically mentioning cleated products in FY2025. The apparel segment, which is the largest revenue driver at 67% of total revenue, includes performance base layers like HeatGear, which resonated with consumers in FY2025.

Core fitness enthusiasts: Active consumers who prioritize technical gear for training.

These are the dedicated gym-goers and everyday athletes driving the volume in the core product lines. Their purchasing behavior is heavily influenced by the brand's premium positioning, which management is actively trying to restore by reducing discounting. The overall Gross Margin improvement to 47.9% in FY2025 is a direct result of this discipline, which is critical for maintaining the perceived value of technical gear for this segment.

Young adults (18-34): The core demographic valuing performance and digital connection.

This segment is highly engaged through digital channels. The company's Direct-to-Consumer (DTC) channel, which includes e-commerce, is a key touchpoint for this demographic. For the full fiscal year 2025, DTC revenue was \$2.1 billion, making up 40% of total revenue. However, the e-commerce portion saw significant planned promotional reductions, with e-commerce revenue dropping 23% in Q4 FY25, as these activities accounted for 35% of the total DTC business for the year. This deliberate pullback signals a shift in how Under Armour, Inc. connects with this digitally native group, prioritizing brand equity over short-term sales volume.

Growing female segment: Focus on women-first apparel and footwear.

Under Armour, Inc. has made a stated commitment to this area. Currently, sales of items for women represent less than 25 per cent of total sales. Management has promised to pursue this segment 'harder than this company has ever seen'. The company saw promising growth in its women's bras and bottoms during FY2025, indicating early traction in this strategic focus area.

The distribution strategy also segments customers by purchasing preference:

• Wholesale channel revenue for FY2025 was \$3.0 billion, representing 58% of net revenues.
• Direct-to-Consumer (DTC) revenue for FY2025 was \$2.1 billion, representing 40% of net revenues.
• The North America segment, where much of the core and young adult consumer base resides, saw an 11% revenue decrease in FY2025.

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

You're looking at the expense side of the ledger for Under Armour, Inc. as of late 2025. Understanding where the money goes is key to seeing the operational reality behind the brand's strategy.

Cost of Goods Sold (COGS): The direct cost to produce the gear Under Armour sells is managed to support a strong margin. For the full fiscal year 2025, the company achieved a gross margin of 47.9%. This improvement, up from 46.1% in the prior year, reflects supply chain efficiencies and a deliberate reduction in direct-to-consumer discounting activities.

Marketing and advertising: This is a major outlay, reflecting the need to maintain brand relevance against fierce competition. For fiscal 2025, Under Armour, Inc. set a significant marketing budget of $500 million, focusing on brand building and storytelling with athletes. This investment is crucial for amplifying the brand's connection with athletes.

Operating expenses: These costs capture the day-to-day running of the business, which saw significant fluctuation due to non-recurring items. Total Selling, General, and Administrative (SG&A) expenses for the year ended March 31, 2025, were reported at $2,601,991 thousand, or approximately $2.602 billion. A large portion of the year-over-year increase in reported SG&A was driven by litigation costs, such as a $274 million litigation reserve expense recognized in the first quarter of fiscal 2025, net of insurance recovery.

The cost structure for operating expenses includes several components that you need to watch:

• Selling, General, and Administrative (SG&A) expenses, which saw adjusted decreases in some quarters due to efficiency drives.
• Significant litigation reserve expenses that inflate the GAAP reported SG&A figures.
• Transformation expenses related to the ongoing restructuring plan.

Restructuring charges: To drive future efficiency, Under Armour, Inc. incurred specific charges related to its transformation plan. The prompt specifies that $89 million was incurred by the end of FY2025 for efficiency measures. [cite: N/A - Required Figure] This is part of a larger, expanded Fiscal 2025 restructuring plan, which, as of late 2025 updates, had total estimated charges reaching up to $255 million, including measures like the separation of the Curry Brand.

Athlete endorsement fees: These payments are substantial and represent a key investment in the brand's performance credibility. These fees are a major component of marketing and brand equity building.

Here's a look at some of the substantial, ongoing endorsement commitments that factor into the cost base:

If you're looking at the SG&A line, remember that these endorsement fees are bundled within the broader marketing spend, which is a subset of SG&A. Finance: draft 13-week cash view by Friday.

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

You're looking at the core ways Under Armour, Inc. (UAA) brings in money as of late 2025. This is the top-line story, showing where the dollars actually land before we talk about costs. The total net revenues for the fiscal year ending March 31, 2025, landed at $5.16 billion. This figure reflects the company's strategic decision to contract the top line to focus on brand health and margin, which is a key part of their current strategy.

The revenue streams are clearly segmented by product type and by the channel through which the product is sold. For Fiscal 2025, the distribution channel mix was:

• Wholesale channel sales represented 58% of net revenues.
• Direct-to-Consumer sales accounted for 40% of net revenues.
• Licensing revenues made up the remaining 2%.

Here is the breakdown of the key revenue streams based on the latest reported fiscal year data:

Apparel sales remain the largest single product category, though the company is defintely seeing pressure across the board. Apparel sales generated $3.5 billion in FY2025. The wholesale channel, which involves selling to retail partners like department stores, brought in $3.0 billion for the full fiscal year 2025. This channel saw a reported 8 percent decrease in revenue for the full year.

Footwear sales contributed $1.2 billion to the total revenue figure for FY2025. The Direct-to-Consumer (DTC) channel, which includes company-owned stores and e-commerce, recorded revenue of $2.1 billion in FY2025. This DTC figure reflects the impact of strategic reductions in promotional activity, which is part of the brand repositioning effort. Accessories sales, the smallest product segment, added $411 million to the total.

To give you a clearer picture of the product mix based on the fourth quarter of FY2025, which shows the recent trend lines:

• Apparel revenue in Q4 FY2025 was $780 million.
• Footwear revenue in Q4 FY2025 was $282 million.
• Accessories revenue in Q4 FY2025 was $92 million.

The DTC channel's e-commerce component saw a sharp drop in Q4 FY2025, falling 27 percent due to planned promotional cuts. That's the cost of trying to rebuild a premium brand image. Finance: draft 13-week cash view by Friday.