What is the current status of Under Armour's turnaround efforts?

Under Armour's turnaround efforts have been ongoing for about 9 years, but the company has not seen the benefits of its strategic plans, and people have lost confidence that anything will get better.

How has the sportswear market affected Under Armour's performance?

The sportswear market in general has not been favorable, with other companies like Puma and Nike also struggling. This has made it more difficult for Under Armour to execute its turnaround plan.

What is the analyst's outlook for Under Armour's future?

The analyst believes that Under Armour still has the advantage of being in a growth industry, and its strong brand positioning in the US gives it the potential to bounce back. However, the turnaround is taking much longer than expected, and the company's valuation is currently very low.

Home / Business and Economy / Under Armour's Decade-Long Slump Continues Amid Plunging Sales

Under Armour's Decade-Long Slump Continues Amid Plunging Sales

8 Aug

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Summary

Under Armour forecasts 10th straight quarter of sales declines
Turnaround efforts hampered by unfavorable sportswear market
Analyst sees potential for long-term recovery if expectations are low

Under Armour's Decade-Long Slump Continues Amid Plunging Sales

As of August 8th, 2025, Under Armour continues to struggle with its turnaround efforts, reporting a worse-than-expected drop in sales for the current quarter. This marks the company's 10th straight quarter of sales declines, as it grapples with steep tariffs and an unfavorable sportswear market.

CEO Kevin Plank has remained optimistic about the brand's ability to turn things around, but the analyst David Swartz of Morningstar notes that the reality is "the numbers are very poor and they have been for quite a while." Swartz explains that the long lead times in the apparel and footwear industry mean changes made today may not reach consumers for about a year and a half, making the turnaround a long-term process.

Despite the challenges, Swartz sees potential for Under Armour to bounce back, as the sportswear market still offers growth opportunities. The brand's strong position in the US and reputation as a performance sports brand provide a foundation for recovery. Additionally, the company's balance sheet remains strong, and the current low valuation could present an opportunity for long-term investors.

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