The rise and fall of Under Armour: How a $20B brand lost its cool

The company that went from a basement idea to #2 sportswear brand in 20 years — then got so distracted by tech and politics it forgot what it actually sold.

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By The Numbers

$5B

peak annual revenue

-74%

stock crash from peak

$120M

loss from Sports Authority bankruptcy

What They Nailed Early

Solved a real problem for hardcore athletes with compression moisture-wicking shirts. Picked a few fitness categories and executed obsessively. Hit $400M in sales within a decade and overtook Adidas as #2 in the U.S.

What Changed

Hubris set in. Instead of focusing on apparel, they spent hundreds of millions buying fitness apps to become a "tech company." CEO got political on TV, alienating Steph Curry. They bet heavy on dying malls and missed the athleisure trend that made Lululemon explode. Started discounting through TJ Maxx, killing the premium brand perception.

Where it Landed

Stock down 74% from peak. Revolving door of CEOs. Founder Kevin Plank back in charge trying to rebuild basics. Still huge but uncool — now an afterthought behind Nike, Lululemon, and emerging brands.

The Principles

Hubris kills. When you're winning, the temptation to chase shiny objects (tech! politics!) pulls focus from the core business that made you successful.

Distribution is destiny. Under Armour bet on malls and Sports Authority while Nike built owned stores and went direct — that channel blindness cost them $120M overnight and long-term relevance.

Premium brands can't discount their way out. Once your gear floods TJ Maxx, the cool kids move on — and cool was Under Armour's entire moat.

Builder's Takeaway

3 warning signs your brand is losing the plot:

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You're chasing trends outside your core (tech, politics) while competitors eat your lunch

•

Your distribution depends on dying channels you don't control (malls, wholesalers going bankrupt)

•

You're discounting to move product — killing brand perception to hit short-term numbers

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