When exploring Under Armour net worth, it’s clear 2024 was a challenging year for the company. While the company’s revenue declined, there were specific factors at play that drove these results.
At Ando Money, I’ll break down these key contributors to help you understand how Under Armour’s financial performance unfolded.
Quick Facts
| FACT | DETAIL |
|---|---|
| Name | Under Armour, Inc. |
| Full Name | Under Armour, Inc. |
| Website | underarmour.com |
| Industry | Sportswear, Footwear, Accessories |
| Traded as | NYSE: UA, UAA |
| ISIN | N/A |
| Founded | September 25, 1996 |
| Founders | Kevin Plank |
| Country/Territory | United States |
| Headquarters | Baltimore, Maryland |
| Chief Executive Officer | Kevin Plank (as of April 2024) |
| Number of Employees | N/A |
| Market Cap | $3.94 billion |
| Total Assets | $4.76 billion |
| Total Equity | $1.82 billion |
| Revenue | $1.2 billion (Q1 2025) |
| Net Income | $305 million loss (Q1 2025) |
What is the Net Worth/Market Cap Of Under Armour in 2024?
As of October 2024, Under Armour’s market cap is valued at $3.94 billion.
This places the company well within the range of notable competitors in the sportswear industry, although it has experienced a downturn compared to previous years.
If we compare, companies like Nike and Adidas are positioned higher in terms of market valuation. Below are a few companies related to Under Armour, either as competitors or partners:
For a more detailed comparison of how these brands stack up against the top companies, check out the most successful companies on our website.
Under Armour Financial Performance Overview
Key Drivers of Revenue Decline in 2024
In 2024, Under Armour faced a 10% decrease in revenue, bringing the total for Q1 fiscal 2025 to $1.2 billion.
This decline stemmed largely from reduced promotional activity and weaker sales across multiple product lines.
North America, in particular, suffered a 14% revenue decline, while Asia-Pacific fell by 10%. Despite these downturns, Latin America managed a 16% increase, contributing positively to the company’s overall results.
The decision to cut back on promotions was strategic, aimed at improving gross margins.
However, it led to a 12% drop in direct-to-consumer sales, with eCommerce revenue alone down by 25%.
Wholesale revenue also fell by 8%, indicating a broader trend of reduced demand across key channels.
Breakdown of Product Categories Impacting Revenue
Product sales across categories mirrored the general decline in revenue. Apparel, traditionally the company’s strongest segment, saw an 8% decrease, while footwear dropped by 15%.
This performance highlights how challenging the year has been for the brand’s core offerings, which are heavily influenced by consumer demand for performance-based products.
In contrast, accessories showed a smaller decline of 5%, but these represent a much smaller portion of the overall revenue, making a limited impact on the total financial picture.
Regional Revenue Analysis
North America is Under Armour’s largest market, and the 14% decline here significantly impacted the overall financial performance.
The region continues to struggle, with the company working to “reset” its brand positioning.
Conversely, the Latin American market provided a bright spot, with a 16% increase in revenue, translating to a 12% currency-neutral growth.
The EMEA market was flat, and Asia-Pacific underperformed, down 10% (7% currency-neutral).
This disparity across regions underscores the need for Under Armour to strengthen its presence globally.
Wholesale vs. Direct-to-Consumer Sales
A deeper look at wholesale revenue reveals an 8% decrease, driven by reduced orders and lower demand from retailers.
While this is concerning, it’s the direct-to-consumer sales that saw the sharpest drop, down 12%, largely due to planned reductions in promotional activity.
With eCommerce revenue down by 25%, representing 34% of the direct-to-consumer business, the company has recognized the need to re-engage its customer base and boost online sales.
Gross Margin and Profitability Improvements
One silver lining for Under Armour in 2024 was the improvement in gross margin, which increased by 110 basis points to 47.5%.
This improvement was primarily driven by a reduction in discounting and lower product costs, helping offset the overall revenue decline.
Nevertheless, the company continues to face challenges related to unfavorable foreign currency impacts and supply chain headwinds.
These factors have influenced channel and regional mix profitability, preventing a more significant recovery.
Restructuring Plan and Its Financial Impact
As part of its fiscal 2025 restructuring plan, Under Armour recognized $25 million in restructuring charges, with total restructuring-related expenses amounting to $34 million for Q1.
This plan, initiated in May 2024, is designed to reduce operational inefficiencies and boost the company’s long-term financial health.
These restructuring efforts will span the rest of the fiscal year, with the goal of streamlining operations and improving profitability.
By reducing costs and reallocating resources, the company hopes to reverse the negative trends that have affected its financial performance.
Financial Losses from Litigation Expenses
Litigation expenses had a noticeable impact on Under Armour’s financials in Q1 2025, with $274 million in reserves set aside for ongoing litigation.
This significant expense was only partially offset by a $60 million insurance receivable.
When adjusted for these costs, operating income for the quarter reached $8 million, which offers a clearer picture of the company’s operational performance when excluding external factors.
Inventory and Cash Flow Management
Under Armour took steps to manage its inventory, which was reduced by 15%, bringing it down to $1.1 billion by the end of the quarter.
This is a positive development, as excess inventory can lead to further discounting and erode profitability.
Additionally, the company ended the quarter with $885 million in cash and cash equivalents, a strong indicator of its ability to maintain liquidity despite challenging market conditions.
Stock Repurchase Program and Shareholder Value
Under Armour announced a $500 million stock repurchase plan in May 2024, demonstrating its commitment to returning value to shareholders.
In the first quarter, the company repurchased $40 million worth of Class C common stock, retiring 5.9 million shares.
This move not only strengthens the company’s share price but also shows confidence in its long-term financial health.
With $460 million remaining under the authorization, the buyback plan is expected to continue through the rest of the fiscal year.
FAQs About Under Armour
How did Under Armour’s footwear sales perform in 2024?
Its footwear sales decreased by 15% in Q1 2025, reflecting weaker demand in key markets. This category has historically been one of the company’s growth areas, making the decline notable.
What contributed to the gross margin improvement in 2024?
The company’s gross margin improved by 110 basis points, primarily due to reduced discounting and lower product costs. However, this improvement was partially offset by unfavorable foreign currency impacts.
What impact did litigation expenses have on Under Armour’s finances?
Litigation reserves in Q1 amounted to $274 million, significantly impacting the company’s overall performance. However, this was partially mitigated by a $60 million insurance receivable, leading to an adjusted operating income of $8 million.
How did Under Armour manage its inventory in 2024?
The company successfully reduced its inventory by 15%, ending Q1 2025 with $1.1 billion in inventory.
This reduction is crucial for maintaining profitability and avoiding excessive discounting.
What was the outcome of Under Armour’s stock repurchase plan?
Under Armour initiated a $500 million stock repurchase plan, buying back $40 million worth of Class C stock in Q1 2025.
Conclusion
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