Under Armour was a real threat to Nike. Now it’s fighting to stay relevant

It was once hyped as a worthy rival to Nike. But at present, Under Armour, founded by a 23-year-old former college athlete, is struggling to “just do it.”

It was once hyped as a worthy rival to Nike. But at present, Under Armour, founded by a 23-year-old former college athlete, is struggling to “just do it.” Instead, the brand that’s championed on the basketball court by Stephen Curry and on the golf course by Jordan Spieth, is now struggling — badly — to find its footing in an increasingly competitive and crowded sportwear marketplace for regular folks, where younger shoppers are more googly-eyed over newer entrants like Hoka and On running shoes. Under Armour’s annual sales have been sluggish at best for the past several years, while its stock has plunged 88% from its all-time high in 2015. Industry experts said the company is mired in an unpleasant mix of problems, which include an identity crisis, several management controversies, ignoring evolving market trends to its detriment, and a rotating carousel of CEOs in quick succession. One of them is Kevin Plank, its founder, who is back at the helm for a second time as CEO after being replaced in 2019. Similar to Starbucks founder Howard Schultz’s past returns to Starbucks and Disney chief Bob Iger’s recent return as CEO, Plank aims to right the ship at Under Armour. “When Under Armour was growing at 20% plus numbers, people saw it as a legitimate competitor to Nike,” said David Swartz, senior equity analyst with research firm Morningstar, in an interview with CNN. “It was like On or Hoka but 10 years ago. It was the upstart athletic brand that was making real inroads against Nike, the dominant name in the industry. People saw it as a company that actually could break through and take market share from Nike among the hardcore athletes,” Swartz said. “That actually did happen for a while, but then that didn’t last.”