Under Armour, Inc. (UA): Análise de Pestle [Jan-2025 Atualizado]

No mundo dinâmico de roupas atléticas, a Under Armour está em uma encruzilhada crítica, navegando em um cenário complexo de desafios globais e oportunidades transformadoras. Essa análise abrangente de pestles revela a intrincada rede de fatores políticos, econômicos, sociológicos, tecnológicos, legais e ambientais que moldam a trajetória estratégica da empresa. Desde tensões comerciais e preferências em evolução do consumidor até inovações tecnológicas de ponta, a Under Armour deve manobrar habilmente através de um ambiente de negócios multifacetado que exige agilidade, sustentabilidade e abordagem de visão de futuro para permanecer competitivo no mercado de desgaste atlético de alto risco.

Under Armour, Inc. (UA) - Análise de Pestle: Fatores Políticos

Tensões comerciais dos EUA com impacto na China nos custos de fabricação e importação

Em 2023, Under Armour enfrentou 25% de tarifas sobre mercadorias importadas da China. O total das importações da empresa da China representava aproximadamente 35% de sua cadeia de suprimentos de fabricação. Os custos tarifários adicionais aumentaram as despesas de produção da empresa em uma estimativa US $ 42,7 milhões anualmente.

Ano	Impacto tarifário	Volume de importação	Aumento de custos
2023	25%	35% da cadeia de suprimentos	US $ 42,7 milhões

Regulamentos trabalhistas que afetam a cadeia de suprimentos global

Under Armour opera instalações de fabricação em 12 países, com presença significativa em:

• Vietnã (32% da produção)
• Indonésia (25% da produção)
• China (18% da produção)
• Jordânia (15% da produção)

Incentivos de fabricação doméstica

O governo dos EUA Lei de Redução da Inflação fornece créditos tributários até 30% para investimentos domésticos de manufatura. Under Armour cometeu US $ 15,2 milhões explorar possíveis oportunidades de produção doméstica.

Instabilidade política em mercados internacionais

Os riscos políticos nos principais mercados incluem:

• Vietnã: mudanças na regulamentação trabalhista que afetam 32% da produção
• Indonésia: potenciais aumentos de custos de mão -de -obra de 12-15% anualmente
• China: riscos de tensão comercial em andamento

País	Fator de risco político	Impacto potencial
Vietnã	Mudanças de regulamentação trabalhista	Interrupção da produção
Indonésia	O custo da mão -de -obra aumenta	12-15% anualmente
China	Tensões comerciais	Riscos tarifários

Under Armour, Inc. (UA) - Análise de Pestle: Fatores Econômicos

Incerteza econômica em andamento que afeta os gastos discricionários do consumidor

A receita de 2023 do Under Armour foi de US $ 453,4 milhões, representando uma queda de 2,7% em relação ao mesmo período em 2022. Os gastos discricionários globais do consumidor mostraram volatilidade, com a empresa enfrentando desafios na manutenção do crescimento consistente das vendas.

Ano	Receita total	Mudança de ano a ano
2022	US $ 5,68 bilhões	+4.2%
2023	US $ 5,42 bilhões	-4.6%

Taxas de câmbio flutuantes afetam a receita internacional

As flutuações de câmbio impactaram negativamente a receita internacional da Armour em aproximadamente US $ 37,5 milhões em 2023.

Região	2023 Receita	Impacto em moeda
Mercados internacionais	US $ 1,16 bilhão	-3.2%
Região da EMEA	US $ 458 milhões	-2.8%

Crescente inflação aumentando os custos de produção e mão -de -obra

Sob o custo de mercadorias vendidas da Armour (CAGs) aumentou para US $ 3,24 bilhões em 2023, representando 59,8% da receita total, em comparação com US $ 3,39 bilhões em 2022.

Categoria de custo	2022 Despesas	2023 despesa	Variação percentual
Matérias-primas	US $ 1,87 bilhão	US $ 1,72 bilhão	-8.0%
Custos de mão -de -obra	US $ 612 milhões	US $ 658 milhões	+7.5%

Mercado de desgaste atlético competitivo com pressão sobre estratégias de preços

A margem bruta da Under Armour foi de 47,3% em 2023, em comparação com 49,4% em 2022, refletindo intensa concorrência no mercado e pressões de preços.

Concorrente	2023 Receita	Quota de mercado
Nike	US $ 51,2 bilhões	27.4%
Adidas	US $ 22,5 bilhões	12.0%
Under Armour	US $ 5,42 bilhões	2.9%

Under Armour, Inc. (UA) - Análise de Pestle: Fatores sociais

Crescente preferência do consumidor por roupas esportivas sustentáveis ​​e éticas

De acordo com um relatório de sustentabilidade da McKinsey 2023, 66% dos consumidores consideram a sustentabilidade ao comprar roupas atléticas. A linha de produtos sustentáveis ​​da Under Armour representou 24% da receita total em 2023, com US $ 672 milhões gerados por coleções de roupas ecológicas.

Métrica de sustentabilidade	2023 dados
Uso de materiais reciclados	38% da composição total de tecido
Receita sustentável de produtos	US $ 672 milhões
Preferência de sustentabilidade do consumidor	66%

Aumento da consciência de saúde e fitness, impulsionando a demanda de atletas

O mercado global de atletas atingiu US $ 354,2 bilhões em 2023, com um CAGR projetado de 8,7%. A Under Armour capturou 5,2% de participação de mercado, gerando US $ 18,4 bilhões em receitas relacionadas à Athleisure.

Indicador do mercado de fitness	2023 Estatísticas
Tamanho do mercado global de atletasia	US $ 354,2 bilhões
Under Armour Market Parta	5.2%
Receita de Athleisure	US $ 18,4 bilhões

Mudança em direção a roupas atléticas personalizadas e orientadas pelo desempenho

A Under Armour investiu US $ 287 milhões em P&D para tecnologias de desempenho em 2023. As linhas de produtos personalizadas foram responsáveis ​​por 19% do total de vendas, gerando aproximadamente US $ 535 milhões em receita.

Métrica de personalização	2023 dados
Investimento em P&D	US $ 287 milhões
Vendas personalizadas de produtos	19% do total de vendas
Receita personalizada do produto	US $ 535 milhões

Mudanças demográficas que influenciam padrões de consumo de desgaste atlético

Os consumidores milenares e da geração Z representaram 62% da base de clientes da Under Armour em 2023. Os canais de vendas digitais geraram US $ 3,2 bilhões, representando 42% da receita total da empresa.

Indicador demográfico	2023 Estatísticas
Millennial/Gen Z Base de clientes	62%
Canais de vendas digitais	US $ 3,2 bilhões
Porcentagem de vendas digital	42%

Under Armour, Inc. (UA) - Análise de Pestle: Fatores tecnológicos

Tecnologia avançada de tecidos e materiais de aprimoramento de desempenho

A Under Armour investiu US $ 195,7 milhões em pesquisa e desenvolvimento em 2022. As tecnologias inovadoras da empresa incluem:

Tecnologia	Características de desempenho	Ano introduzido
Coldgear	Tecnologia de isolamento térmico	2001
Calorgear	Tecido leve que ganha umidade	2003
UA Rush	Tecnologia mineral de reflexão por infravermelho	2019

Investimento em plataformas digitais e recursos de comércio eletrônico

A receita digital da Under Armour atingiu US $ 668 milhões em 2022, representando 28% da receita total. Os investimentos da plataforma de comércio eletrônico incluem:

• Aplicativo móvel com experiência de compra personalizada
• Motor de recomendação movido a IA
• Realidade aumentada de tecnologia virtual

Análise de dados e desenvolvimento personalizado de produtos

Métrica de análise	Valor	Impacto
Pontos de dados coletados por usuário	Mais de 1.500	Personalização aprimorada do produto
Algoritmos de aprendizado de máquina	17 modelos ativos	Análise de tendências preditivas

Integração de tecnologia vestível emergente

A Under Armour fez uma parceria com a MapMyFitness, que possui 31 milhões de usuários registrados. Os investimentos em tecnologia vestível incluem:

• Integração da plataforma de fitness conectada
• Desenvolvimento de sensores de tecido inteligente
• Tecnologias de rastreamento de desempenho

Tecnologia vestível	Funcionalidade	Estágio de desenvolvimento
Ua rush smartbase	Rastreamento de desempenho biométrico	Fase de protótipo
Recuperação de recuperação conectada	Métricas de recuperação Monitoramento	Mercado disponível

Under Armour, Inc. (UA) - Análise de Pestle: Fatores Legais

Proteção de propriedade intelectual para tecnologias inovadoras de tecido

Under Armour mantém 87 patentes ativas na tecnologia de tecido a partir de 2023. O portfólio de patentes da empresa é avaliado em aproximadamente US $ 42,5 milhões.

Categoria de patentes	Número de patentes	Valor estimado
Tecnologias de tecido de desempenho	53	US $ 25,3 milhões
Inovações que ganham umidade	22	US $ 12,7 milhões
Regulação da temperatura	12	US $ 4,5 milhões

Conformidade com os regulamentos comerciais internacionais

Under Armour opera em 38 países e enfrenta requisitos complexos de conformidade comercial internacional. Em 2023, a empresa passou US $ 6,2 milhões Sobre conformidade legal e regulatória.

Região	Gasto de conformidade	Número de regulamentos comerciais
América do Norte	US $ 2,1 milhões	47
Europa	US $ 1,8 milhão	62
Ásia-Pacífico	US $ 1,5 milhão	55
Resto do mundo	US $ 0,8 milhão	33

Padrões de responsabilidade e segurança do produto

Under Armour aloca US $ 4,7 milhões anualmente para testes de segurança do produto e conformidade. A empresa mantém 99,8% de conformidade com padrões internacionais de segurança.

Padrão de segurança	Porcentagem de conformidade	Custo de teste anual
Padrões internacionais da ASTM	99.9%	US $ 1,6 milhão
Certificações de qualidade ISO	99.7%	US $ 1,9 milhão
Segurança do produto de consumo	99.8%	US $ 1,2 milhão

Marca registrada e litígios de patente

Em 2023, Under Armour estava envolvido em 6 disputas de patentes em andamento, com despesas legais totais atingindo US $ 3,9 milhões.

Tipo de litígio	Número de casos	Despesas legais
Defesa de violação de patente	4	US $ 2,5 milhões
Proteção de marcas comerciais	2	US $ 1,4 milhão

Under Armour, Inc. (UA) - Análise de Pestle: Fatores Ambientais

Compromisso com práticas de fabricação sustentáveis

Under Armour comprometido em reduzir as emissões de gases de efeito estufa em 56% até 2030. A estratégia de sustentabilidade da empresa se concentra na redução do escopo 1, 2 e 3 emissões nas operações globais.

Métrica de sustentabilidade	2023 desempenho	Alvo de 2030
Redução de gases de efeito estufa	Redução de 25% alcançada	56% redução total
Uso de energia renovável	32% da energia total	Alvo 100% renovável
Conservação de água	Redução de água de 18%	Objetiva de redução de 40%

Reduzindo a pegada de carbono na cadeia de produção e suprimentos

A Under Armour investiu US $ 15,3 milhões em tecnologias de redução de carbono em 2023. A Companhia implementou a otimização de logística avançada para reduzir as emissões de transporte em 22% nas cadeias de suprimentos globais.

Iniciativa de Redução de Carbono	Investimento	Impacto de emissão
Otimização de logística	US $ 7,6 milhões	22% de redução de emissões de transporte
Eficiência de fabricação	US $ 5,2 milhões	17% de redução de emissões de produção
Atualizações de tecnologia	US $ 2,5 milhões	12% Redução geral de pegada de carbono

Aumento do uso de materiais reciclados em linhas de produto

Em 2023, a Under Armour utilizou 45% de poliéster reciclado nas linhas de produtos. A empresa pretende atingir 80% de uso de materiais reciclados até 2025.

Categoria de material	2023 Conteúdo reciclado	2025 Target
Poliéster	45%	80%
Nylon	35%	65%
Algodão	25%	50%

Crescente demanda do consumidor por marcas ambientalmente responsáveis

65% da base de consumo da Under Armour expressou preferência por produtos sustentáveis ​​em 2023. A Companhia registrou um aumento de 27% nas vendas de linhas de produtos ecológicas.

Métrica de sustentabilidade do consumidor	2023 desempenho
Consumidores preferindo produtos sustentáveis	65%
Crescimento ecológico de vendas de linha de produtos	27%
Percepção da marca ambiental	4.2/5 Classificação

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.