Under Armour

Kevin Plank, founder of Under Armour, pictured in 2018

Under Armour was founded on September 25, 1996, by Kevin Plank, a then-24 year old former special teams captain of the University of Maryland football team. Plank initially began the business from his grandmother's basement in Washington, D.C.[4] He spent his time traveling along the East Coast with nothing but apparel in the trunk of his car. His first team sale came at the end of 1996 with a $17,000 sale. From his grandmother's Washington, D.C.-area rowhouse, Plank moved to Baltimore.[5]

As a fullback at the University of Maryland, Plank got tired of having to change out of the sweat-soaked T-shirts worn under his jersey; however, he noticed that his compression shorts worn during practice stayed dry. This inspired him to make a T-shirt using moisture-wicking synthetic fabric.[5] After graduating from the University of Maryland, Plank developed his first prototype of the shirt, which he gave to his Maryland teammates and friends who had gone on to play in the NFL. Plank soon improved the design, creating a new T-shirt built from microfibers that wicked moisture away.[4] Major competing brands including Nike, Adidas and Reebok would soon follow with their own moisture-wicking apparel.[6] Plank opted to use the British spelling "armour" in the company name because the toll-free vanity number was still available for that version.[7]

People began to take notice of the brand when a front-page photo of USA Today featured Oakland Raiders quarterback Jeff George wearing an Under Armour mock turtleneck. Under Armour's first major sale came when an equipment manager from Georgia Tech requested 10 shirts from Plank. Contracts with NC State, Arizona State, and other Division I football teams followed. That year, Under Armour launched several new apparel lines including ColdGear, TurfGear, AllseasonGear, and StreetGear.[5] By the end of 1996, Under Armour had sold 500 Under Armour HeatGear shirts, generating $17,000 for the company.[5] In 1997, Plank had $100,000 in orders to fill and found a factory in Ohio to make the shirts.

Under Armour received its first big break in 1999 when Warner Brothers used Under Armour in two of its feature films, Oliver Stone's Any Given Sunday and The Replacements.[4][8] Leveraging the release of Any Given Sunday, Plank purchased an ad in ESPN The Magazine, which generated close to $750,000 in sales.

UA Corporate office in Canada

The following year, Under Armour became the outfitter of the new XFL football league.[5] In 2003, private equity firm Rosewood Capital invested $12 million into the company.[9] The same year, the company launched its first television commercial, which centered on their motto, "Protect this house."[4] The company had its IPO on the NASDAQ in November 2005, raising $153m of capital.[10] In late 2007, Under Armour opened its first full-line full-price retail location at the Westfield Annapolis mall in Annapolis, Maryland.[11] It has since opened several specialty stores and factory outlet locations in Canada, China, and 39 states including the opening of its first Brand House in Baltimore in 2013 and second Brand House in Tyson's Corner, Virginia.[12]

In 2009, the company formed an alliance with Cal Ripken Jr.'s Ripken Baseball, including providing uniforms for the minor league Aberdeen IronBirds and youth teams participating in the Cal Ripken World Series.[13]

UA Brand House at Disney Springs

The company is reported to be the major commercial sponsor for the reality TV show Duck Dynasty and has garnered attention for taking a stand supporting show "patriarch" Phil Robertson.[14]

Under Armour provided the suits worn by speedskaters in the 2014 Winter Olympics. The US speedskaters were losing while wearing the new Mach 39 speedsuits, but when they reverted to the previous model suits, the skaters continued to lose. Although there did not appear to be a design flaw in the suit that caused the poor results, the news of the suits caused Under Armour stock to drop 2.38%.[15]

The company bid hard over Nike to sign Kevin Durant to an endorsement deal. Offering a reported US$250,000,000 over 10 years. Nike ultimately re-signed Durant after agreeing to structure a contract, offering US$300,000,000.[16]

On January 21, 2014, it was announced that the University of Notre Dame and Under Armour had come to terms with providing uniforms and athletic equipment for the university. This 10-year deal was the largest of its kind in the history of college athletics and became effective July 1, 2014. As of 2014, Under Armour had an operating profit of more than 30%, accelerating from its 2013 pace. The company's share price soared 62.5% that year.[16]

UA store in Wan Chai, Hong Kong

After its November 2013 acquisition of digital app maker MapMyFitness for US$150,000,000, in February 2015 Under Armour announced it had purchased the calorie and nutrition counting app maker MyFitnessPal for $475m, as well as the fitness app maker Endomondo for US$85,000,000.[17][18]

On January 6, 2016, Under Armour announced a strategic partnership with IBM to use IBM Watson's cognitive computing technology to provide meaningful data from its IOT kit and UA Record app.[19]

In July 2016, Under Armour leased the 53,000-square-foot (4,900 m²) space formerly occupied by FAO Schwarz on New York's Fifth Avenue. FAO Schwarz had been paying $20 million in rent. The store's opening, originally planned for 2019, was pushed back to 2021.[20][21] Under Armour then announced in March 2021 that it was planning on subleasing approximately half of the overall space.[22]

Depot of the Under Armour German subsidiary

On December 5, 2016, Under Armour reached a 10-year agreement with Major League Baseball (MLB) to become its official on-field uniform provider beginning in 2020.[23] Under Armour will replace Majestic, who has been MLB's uniform provider since 2004. However, in May 2018, it was reported that Under Armour would be backing out of the deal with MLB, in order to save the company around $50 million. Nike would instead become the on-field uniform supplier of the league.[24] MLB's deal with Nike became official on January 25, 2019.[25]

In October 2019, Kevin Plank announced he would be stepping down by 2020, and COO Patrik Frisk would succeed him as CEO in January 2020.[26][27] In July 2020, the company received Wells Notices from the U.S. Securities and Exchange Commission, Mr. Plank the Under Armour's CEO, David Bergman. The notices are the result of its accounting revelations for the years 2015 and 2016 and "pull forward" sales for the same period.[28] The same month, the company reported revenue decline of 41% for the Q2 of 2020 or $707.6 million. As a result of the COVID-19 pandemic, Under Armour had to close its physical stores earlier that same year. Despite the revenue decline, it still fared better than the analytic predictions, which had previously estimated profits of $541 million in sales for Q2.[29]

Effective September 11, 2023, Under Armour appointment of John Varvatos to the position of chief design officer.[30]

In 2014, sales of apparel, footwear and accessories represented 74.3%, 14% and 9.9% of net revenues, respectively. Revenue has grown steadily by 30% from 2010 to 2014.[33] As of January 28, 2016, the fourth quarter net revenues for 2015 increased 31% to $1.17 Billion while the full year net revenues increased 28% to $3.96 Billion. Based on these numbers, Under Armour has updated its 2016 net revenues outlook to approximately $4.95 Billion (+25%).[34]

On April 29, 2009, the United States Consumer Products Safety Commission (CPSC) announced a voluntary recall of all Under Armour brand athletic cups. The cups might break when hit, posing a risk of serious injury. They were sold from January 2006 to March 2009.[51] On November 3, 2011, the CPSC announced a voluntary recall of all Under Armour Defender chin straps. The straps pose a laceration hazard when a player contacts the metal snap. They were sold from January 2008 to September 2011.[52]

The historic lobby floor pictured in 1933, is now covered by artificial turf for the UA Fitness Performance Center

In 2015, Under Armour released plans for their new Under Armour Fitness Performance Center powered by FX Studios at the Bank of America Building at 10 Light Street in Baltimore. The Fitness Performance Center is planned to take place in the building's lobby, covering historic murals of Baltimore's history by art deco artist Hildreth Meiere with artificial turf flooring. This plan has been seen as controversial due to the fact that Kevin Plank, Nate Costa (president of FX Studios) and developer Cary Euwer used state and federal tax credits to restore the historical building, yet the historical murals are being covered up by turf flooring.[69] Many historians and local Baltimoreans have expressed public outcry that the design should be reconsidered and the murals should be saved.

In January 2016 Under Armour initiated a marketing campaign featuring women hunters including an American woman named Sarah Bowmar.[70][71] In August 2016 a video filmed by Bowmar, showing her husband spearing a bear and then rejoicing that he had hit it, went viral. The bear was found dead the next day.[70][72] Under Armour was heavily criticized worldwide and as result, the company ended its contract with Bowmar a few days after the video became known.[70]

On February 7, 2017, two weeks into the presidency of Donald Trump, CEO Kevin Plank expressed his support for the administration and its friendliness to corporations.[73]

Numerous athletes contracted with Under Armour also spoke out in opposition to Plank's statements. Stephen Curry, the most valuable of the company's sponsorships, hinted that his loyalty to the company could be jeopardized if its actions do not reflect his values.[74] Dwayne Johnson voiced disapproval with the CEO's personal attitudes being reflected onto the company's partners and employees.[75]

On February 15, eight days following Plank's statements, Plank took out a full-page ad in the Baltimore Sun to clarify his position and that of the company. The letter acknowledged that he had used "a choice of words that did not accurately reflect my intent" and described how his company valued diversity, entrepreneurship and job creation. He condemned the administration's ban on travel to and from seven primarily Muslim nations, adding "we will join a coalition of companies in opposition to any new actions that negatively impact our team, their families or our community."[76]

In a statement issued to reporters on June 2, Plank deplored the Trump Administration's decision to withdraw the United States from the Paris agreement:

We at Under Armour are disappointed by the Administration's decision to withdraw from the Paris Climate Agreement as climate change continues to threaten our planet, our cities and our economies. Climate change is real and must be taken seriously by our business community, our customers, our neighbors and our elected officials. Sustainability has always been part of our DNA: it's integral to how we live and work and is essential to our environment. As a business leader concerned with creating American jobs, I disagree with the decision to exit the Paris accord.[77]

On August 14, 2017, Plank removed himself from Trump's Manufacturing Jobs Initiative Council,[78] following backlash over Trump's response to the events in Charlottesville, Virginia.

In June 2018 a Facebook post emerged stating that Under Armour clothing was flammable and resulted in severe burn injuries to a child.[79] Though no recall was issued and no evidence suggests the brand's items were not in compliance with federal regulations, a 2008 study by the United States Forest Service found that Under Armour's material was more likely to result in a burn injury of the wearer than most other undergarment materials.[80]

In November 2019, the U.S. Securities and Exchange Commission made public that Under Armour's accounting policies had been under scrutiny for more than two years.[81] In July 2020, the company confirmed that the U.S. Securities and Exchange Commission had sent Wells Notices relating to Under Armour's accounting in 2015 and 2016.[82]