Under Armour's Financial Analysis

Under Armour has performed relatively well in the past 3 years; while they are the number two American athletic apparel provider, they have had their share of both successful and unsuccessful quarters. Looking at Under Armour’s financial statements, you’ll notice the gradual increase in annual gross profit during the past three years; However, in the last eight quarters, there has been a steady decline. For the 4th quarter of 2016, Under Armour generated a gross profit of $698,624,000, whereas, in the 1st quarter of 2017 profits fell to $583,704,000. While a drop of over $100 million is alarming, it’s important to note that a significant portion of their profits - basketball sneakers and football cleats, are generally purchased during the fall

Over the past three years, Nike has had constant growth in annual gross profit. Their profits grew from $14,067,000,000 to $14,971,000,000 to $15,312,000,000 from 2014-2017. Similarly, Adidas too experienced constant growth in their gross profit over those years. As shown in figure 1 (refer to appendix), Under Armour is trailing their two industry competitors. All three experienced growth in profits over the last three years, however, Under Armour’s gross profit grew 48.2% during this three-year stretch, while Nike and Adidas grew 8.9% and 35.5% respectively. Although, Under Armour’s profit is significantly lower than its competitors, it is important to note that Under Armour competes against mature companies. Similar to gross profit, Under Armour’s revenue over the past three years is significantly lower than their competitors (refer to figure 2 in appendix). While Under Armour’s growth has fluctuated, both Nike and Adidas will no longer have significant

The first is “Power in Pink”, which uses pink materials and decorative designs on both men and female apparel to raise awareness about breast health. This program inspired the creation of “Under Armour Breast Health innovation Center” at J. Hopkins hospital as it raised over $10 million dollars (Under Armor, 2015d). The second is “UA Win”, which looks to empower athletes of the next generation by aiding impoverished children with sports accessibility. The company achieves this goal by training coaches, who in turn help children succeed in their sporting fields. (Under Armour, 2015f). The final initiative is “UA Freedom,” which provides veterans and first responders discounts of 10% on all products from the company, and to its partners with the “Wounded Warrior Project.” (Under Armour,