The Rise & Fall of Under Armour
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- čas přidán 16. 05. 2024
- In the 2010s, there was one tiny American brand doing what no one else had been able to do for decades in sportswear. It had grown sales in North America at double digits every year for 13 years, taken market share from Nike, and leapfrogged Adidas as the new number #2 athletic brand in the United States. It was an upstart with a passionate fanbase, competed on quality over price, and backed by some of the most celebrated athletes in the world. This was Under Armour.
In the eyes of the media and investors, the fast-growing Under Armour was the closest to a Nike slayer that the industry had ever seen - and that enormous potential was quickly priced into the stock. Yet fast forward to the present - just a few years after the hype and my own experiences, Under Armor is a shadow of its former self and is worth only a little more than a penny stock.
Declining sales, executive turnover, failed pivots, expensed trips to strip clubs, and federal investigations into dodgy accounting have plagued the company year after year. Under Armor these days lags behind not just Nike and Adidas, but also New Balance, Puma, and Lululemon. Even the collaboration with Steph Curry, once a rival Nike’s billion-dollar Jordan product line, has fallen short. While Air Force Ones, Yeezys, UltraBoosts, Air Maxes, Blazers, Converse, 574s, and Jordans dominate footwear, Under Armor has remained non-existent on the field and on the street.
How could such a a promising brand with athletes like Steph Curry and Tom Brady collapse in such a short time? In this episode, we’ll cover the 4 eras of Under Armor and how their rapid downfall is a timeless case study on governance, tech, and the unspoken dangers of founder-led companies.
0:00 Earn Your Armor
14:17 The Nike Slayer Era
26:50 The Icarus Era
30:29 The Band-Aid Era
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"You didn’t need a billion data points, hundreds of software engineers, and fitness tracking apps to tell you that Under Armor’s biggest problem was that its products were ugly."
That's brutal lol
It's more important to hire good designers than wasting money on the overpaid software guys if you want to have products that consumers want.
Though often performance will require footwear to be ugly. Altra and Hoka One One are two brands that have a pretty good success based on two different philosophies of performance, and are both ugly.
I'm not convinced it's true though. How can anyone look at shit like the Yellow Lobsters or Big Red Boots and seriously think ugly designs will keep sneakerheads from buying whatever slop is put in front of them?
@@JohnSmith-dp2jd Yeezy is a better idea for that. The Yellow Lobsters and Big Red Boots are very much an art project, and should be seen like the high art market. People don't buy those like shoes. People actually will wear Yeezys shoes.
The Bozo who made up the name and especially the logo should be barred from business development permanently 😂
I remember seeing Under Armour everywhere and it's only this video that made me realise how long it's been that I haven't seen them anywhere.
Thank God, they just had the worst colorways and styles ever.
@@gigawhite smallest towns in ukraine don't have shopping malls
Giant under armor in my building now.
UA is still very popular in Ireland but not like it was. I love their stuff.
@@gigawhiteI was just thinking that as I was watching the video, it’s so weird they are still so big in Ukraine, even during the war
Last year Steph curry had a monster game in game 4 of the nba finals and partially attributed his performance to his shoes in a unique purple color way. Consumer demand for those specific shoes was incredibly high, yet it took UA months to release it to the public and the hype died down in the meantime
They signed Canelo Alvarez, but the only merch you could find in México were T Shirts, no Boxing gear, nothing, they really don’t know how to sell athletes they sign
When Jordan Spieth was hot several years ago, they made a big deal about him signing with Under Armour. Every weekend he was sporting UA clothes and shoes, yet they were nowhere to be found at retail. I think they finally released his golf shoes a year or two later. Terrible marketing
They also failed to acknowledge the fashion component of sneakers. Especially for casual adult athletes and children, people typically wear their athletic shoes casually. They should have consulted the sneaker community and at least got some guidance on what designs and colorways would be exciting.
@@TekniCaliSpeakingreat points.
There is only so much Curry can do. Even if they did have supply, how long can that last?
As a senior data analyst myself, I have to say your point about the limitations of data is 100% correct! If you collect data without a strategy for interpretation or use then you're collecting noise, and costing your company in server space and analyst salaries without giving any value. Data's power is in answering ambiguous questions where clear data points can make a difference, not in collecting a hodgepodge of loosely related points and hoping that you find something everyone else missed.
It's ok. We'll use AI / ML to figure out the Big Data! *sacasm*
Data is also limited to viewing the past and is blind to the future, no matter how likely a potential future might seem. Most people tend to forget that.
@@incypheDo you think AI will get that good? I your sarcasm, but I'm asking a genuine question I have
@@pauljones9150 the sarcasm reminds me of those tv shows in the 80s that were making fun of people using computers
@@pauljones9150 It already is in some applications, but with the same limitations regarding strategy. If you have established a good success heuristic that gives value and a reasonable way to validate to allow continuous (and preferably automated) improvement, you can create a useful black box for analyzing data. Without that, no matter how good the underlying tech is, garbage in will always yield garbage out.
Under Armor’s biggest weakness is it’s complete inability to be fashionable. Only athletes wear under armor only and when training or competing in their sport.
Nothing will ever change this if signing Steph Curry couldn’t make a difference.
It’s not even that the brand isn’t cool, it’s just that it somehow always looks out of place with casual attire.
It’s like their entire inventory gives off the same vibe as baseball cleats
Your right, they don’t have an identity past sports. Nobody wants to wear under armor as street wear like Nike graphic tees.
So all-black Air Force 1 are fashionable, yet all-black Under Armour tracksuit ain't? I love mine
I know nothing about sneakers. You couldn't get me to tell you the difference between Jordans or Air Force ones even if you put a gun to my head.
That said, my first reaction to seeing those under armor shoes was "those look tacky as heck".
Don’t think it was created to be fashionable
I’ve never seen UA worn casually. But Nike and adidas even puma are worn all the time.
"When you come from millions, you seek billions, and when you achieve your billions, you seek purpose" I love this quote
I come from lower income household and I still seek purpose over money
If only it were true.
That’s a terrible quote.. considering it applies to like less than 1%
@@pistolpete3199No it doesn't. It describes a human tendency that literally all of us are susceptible to.
Weirdly specific Under Armor fact. They actually produce some Hilton Uniforms. I worked front desk at a Florida Hilton until last week, and all our uniforms were produced by Under Armor. Their shirts were actually amazing quality. 2 years, pin name tags, and constant movement; with the laundry skills of a barely 21 year old, later, and they still look brand new.
That’s the odd thing about Under Armour, the factual thing of the Nike Slayer era was that all the products were just plain better that Nike and Adidas, they also have a lot of innovation on apparel and I still think in some areas they still ahead of their competitors (their mineral infused clothes are still great work clothes and I loved them) but they could not foresee just how wrong his vision was. Nowadays if you want premium and niche sporting clothing you shop ASRV or Gymshark, if you want style and try and true comfort then you go for Nike and Adidas, what’s even worst is that the competitors they were so mocking so much was cooking some of their greatest R&D comebacks (Nike with Dri fit ADV and Adidas primeblue) that Under Armour was just left sunk in the water with no direction
I tried many UA footwear, definitely not better than Nike or Adidas.
No not footwear Nike is too established for that but performance clothing with technology with technology. I still have some under armor zip up hoodies that I use when I go sled running and stuff and I have totally junked them and they still look good im surprised. @@rc....
I bought an UA shirt that was on deep discount I think because it's like an urban camo. I've washed it probably 200 times and it still looks new.
To me the difference between what made UA flop and Nike/Adidas success is not just shoes, it’s because they transformed their active wear into fashion wear. Even people who don’t ever exercise will wear Nike or Adidas but people only wear UA for functionality. They didn’t change with the times and the times left them behind.
Yup basically UA is just another Asics.
@@wpaiaexcept ASICS has turned around and pulled off what UA so far has not. Their street fashion shoes and Onitsuka Tiger shoes are currently very trendy and selling very well. Don't take my word for it.....go look it up yourself. ASICS has been posting record profits for about the last four financial quarters. And they have clawed back a good chunk of running shoe market. ASICS also just hit record market cap valuation for them. While UA is falling (at 2.9 billion now).
@@wpaiaat least with asics, like the commenter mentioned, id wear asics beyond the workout. ua is just hideous stylewise, starting with the logo, which doesn't resonate with me. maybe my dad
@12inch_monster because your dad knows quality/price ratio and doesn't give a shit about a logo
Exactly. If you want to be a successful sportswear company, you don't sell functionallity to athletes, you sell the idea of sportiness, athleticism and fitness to everyone else - that's where the money is!
Under Armour seems to do really well in two places...
1. Under Armour polos are the IT guy office casual uniform.
2. At the gym and in high school/college athletics they seem to be doing pretty well relative to the other big brands.
I didn't know they were going through any financial turmoil until this video.
I use UA exclusively for my athletic wear. Everything is built well, specialized for athletes. It's just that the market has transitioned to athlesuire.
The IT guy office uniform is so on point 😂
Good point on the college athletics. Under Armour has several exclusive sponsorships with huge programs such as Maryland, Wisconsin, Auburn, Notre Dame, etc.
I thought the it uniform was Patagonia, but I’m not from the USA 😂
@@weird-guyPatagonia is usually for the vests and jackets. And then UA is for the polos. But it also varies by state
Under Armor desperately needed/needs a successful overhaul of their shoe design language. There have always been aspects of their shoes that I liked, but I could never pull the trigger due to the overall look.
They make/sell shoes? Prior to this video/your comment - I had no idea. Own lots of garments from them though though.
their only good looking shoes are the main Curry line shoes and even them arent universally loved
For real I like how they used to look the first two models but after that, I think it was a humongous downgrade
STEPH CURRY Golf. That’s it. The guy is going to be a mega star golfer post basketball career. And he’s signed with under armour
I wanted to pull the trigger on the main Curry lines too, but they keep making that rubber foam outsoles that has almost non existing durability and also hardly going sales make the lines unloveable
Almost every kid on our field wears UA everything because it’s $5 cheaper & have more options in little sizes. If they chose to specialize in kids athletic wear, they’d thrive.
Underarmour is still my go to for gym wear.
Under Armour started out as a cop brand, making synthetic wicking tees to wear under body armour. I remember seeing the brand in public safety catalogs in the 90's.
Lies!!!
No it isn't
The founder expected to use fitness data to help him make rational decisions on how to sell sports apparel...
As in, he wanted to use irrelevant data to sell products in an industry that is wholly irrational... (As outlined in the video, sports apparel is largely driven by style and celebrity attachment, not objective measures).
No wonder the company fell so hard
He seriously misread the market.
Ugly products don’t sell don’t matter how good the products is.
@@weird-guy function over form is a thing in very nerdy and pragmatic industries
But shoes and clothing definitely isn’t one of those industries
@@weird-guyugly products sells depending on who wears or collaborates with it. Just look at Crocs, Yeezy, or Salomon. People usually buys something just because it's hype.
damn I remember when I was in college there were kids doing business reports on how successful Under Armor was, now a decade later I can't remember the last time I saw anything from the brand.
Going down the path of Sears and Kmart
Loving this bro, keep up the good work!!
Under armours problem is they put their logo on their shoes. They haven’t developed a design language to communicate “hey this is an under armour shoe” without a logo yet. (Like adidas 3 stripes)
The logo always looks out of place because it doesn’t go well with the style lines and direction of sneakers. Under armour logo has style lines that point in a vertical direction and shoes have horizontal styles lines.
+ the logo is just ugly (In my opinion)
I agree with you. The logo is ugly. And not easy to make blend well into designs.
Man I know. I hate the sweaters with the huge logo on the front. Who would wear that lol
@@marceloflores3953 I totally agree. I hate this modern design aesthetic of looking like a walking billboard advertisement. It's so damn obnoxious. I thought it could not get any more ridiculous until a few months ago when I saw a woman wearing a type of poncho. Made of light black material. But it was long and almost touched the ground. And on the back was a giant Nike logo that literally went from the woman's feet to her head 😂😂😂😂😂😂. It looked like something out of a parody .......but sadly it was very real. I honestly would feel embarrassed to walk around with a logo of anything that big. I just don't get it.....
Yes that logo needs a revamp. When that happens UA will thrive.
It has nothing to do with the logo, sort of. All such companies showcase their logo on their shoes and products. Adida's three stripes is their logo, by the way, and it is trademarked. UA's problem, it is a redundant company that wants to charge more - for just a logo. When you are redundant, not to say a copy with nothing special, you need to charge less.
under armour is great if you are a pragmatic athlete or just want to get in shape and not spend a lot. However, casuals like me stick to a stylish nike shoe.
I’m binging on your videos. What a great series! Thank you!
It's a sad world we live in where single digit revenue growth is considered failing... our entire economics system is becoming a ponzi scheme
Babe, wake up. It's the perfect Sunday morning now.
Take your meds rügen . She left you years ago you have to move on 😔
@@ChadPANDA... Hahahahahaha
Under Armour was cool late 2000s-early 2010s. They’ve backed themselves into a hole as a company known for just performance gear. Can’t wear anything of theirs out unless I want to look like a suburban dad taking his kids to baseball practice.
I think people are missing that part
That’s what’s in right now, lol
in middle schools @@Youarelovewalk
@@Australiaisupsidedown that’s who sets the trend lol
Under armour is fresh low key.
@@Australiaisupsidedown like dad shoes and hats being in style
Excellent analysis, I really liked this episode 😊
Wow, love the presentation. First time you were. I hit that subscribe button and plan to watch them all. Nice concise information!
25:15 "You didn't need a billion data points, hundreds of software engineers, and fitness tracking to apps to tell you that Under Armour's biggest problem was that its products were ugly." WOW!
People have different tastes,,likes and dislikes..one will not fit you but will fit to some..ugly to your eyes but good to others.
@@piningrosal7632yeah nah mate, UA is - on average - very damn ugly.
That's a braindead conclusion. Everything Nike does is ugly to me. People have different tastes. Their problem was no marketing. I never saw a single ad of Under Armour. Like, never. Meanwhile Nike was everywhere with footballer ads.
@@robertmusil1107the problem with UA is not that it's ugly, it's just too generic. Something can be so ugly it rotates back to appealing. Crocs, Yeezy, Salomon, and Mschf knew this
@@robertmusil1107well clearly it’s not working for them? Sure you find them ugly but the other 99% of people don’t. Clearly the majority of people think UA look like shit so you’re opinion on them isn’t as important as you think it is
This is crazy too see considering I’m from Baltimore (UA Headquarters) and literally everyone wears Under Armour… I would have never guessed this
I'm also from Baltimore. Under armour is everywhere. I had no idea it wasn't a highly sought after brand name anymore. They make great kids clothes and shoes. It's all my kids want.
Dumb video..I’m in Jersey and it’s everywhere
you make some of the best researched and insightful videos on youtube. Keep up the amazing work man.
Fantastic analysis as usual!
An excellent return to form for Modern MBA! Happy to see you break from your half-hour limit, and take us back on a story of "What Went Wrong." Keep it up!
Modern MBA is literally my favorite CZcams channel these days. Keep it coming!
woh, how have I just found this channel. I never thought I'd watch a 40minuite corporate video but kudos, it was informative and engaging 👍
fantastic analysis and great production value.
Perfect example of a company not understanding and adapting with the changing market, at a certain point all these other companies had moisture wicking fabric that looked better, they never had a fashionable shoe, and they wasted a billion dollars on health/fitness data while Nike, adidas, puma and even new balance pump out iconic street fashion all while also providing performance wear
exactly. Under armour had the performance wear advantage early on no doubt, but for the last 5 years or so all the big brands have caught up more or less, and now the main difference is style/fashion of the item. The pivot to health/fitness data collection is truly baffling and really put them in a bad spot financially. Could have used those funds for more collabs with top athletes or even better some fashion icon like adidas did with kanye.
I've never seen an Under Armor shoe that I've liked, and their clothes that aren't specifically for training just come across as something a dad would wear to his kid's Saturday morning soccer game with his Yeti tumbler full of coffee. Aside from Nike and Adidias, I think that's where a company specifically like Puma has really thrived, being more fashion-forward outside the actual realm of athletics, to get the casual person interested in their products. To me, an Under Armor quarter-zip is as quintessential to the peak dad-core aesthetic as the pair of pristine white New Balances.
At least NB are comfortable.
@@klau88873Under Armour clothing is extremely comfortable and their shoes are too
Highly informative and entertaining. Thanks.
*"Yet all these products would be rendered obsolete as Tim Cook would single-handedly crush this market"* 🤣😂😂
Please do a video on the stagnation of Asics and how they became lumbered as a dad brand, and seen as behind the times with their long running gel technology. Their shoe sales had slipped considerably, and they lost a lot of market share in running. As well as their stock price cratered. ASICS was definitely seen as not cool. Three years ago ASICS was largely in the same boat as Under Armour in many respects.
To how they have now completely turned around their business in 2023. They are now one of the fastest growing street fashion brands (their Y2K sneakers have become really trendy these days). They have established Onitsuka Tiger as a very profitable sub brand and premium fashion brand (many celebrities are wearing their iconic Mexico 66s). And their sales are booming in China, India, and South East Asia. They have also clawed back a good chunk of market share in running with innovative and modern looking shoes (with new foams and modernized gel). They have even become the number one brand in Tennis shoes. Beating Nike in this area.
They have been posting record profits for the last three financial quarters. They have even gotten their stock price up from 15 dollars a share to about 50 dollars a share based on their record profits.
I think Asics would make a fantastic case study in how to turn a sports brand around, and actually start to become cool/trendy. Basically what UA has so far failed to do.
I got into ASICS for running foam purposes and the designs actually becoming something I actually like for visuals too has been super nice.
Those gel-lyte 3 collabs gave them a boost some years back
@@SMJDC They do a LOT of collabs now. With a LOT more than just the Gel lyte iii's. And many of them are selling on the resell market for high prices.
Plane and simple the quality of the materials fell and the cut of their shoes made no sense. A size 12 felt like a narrow size 11. No ryhme or reason for that
Yes, that would be interesting! I think that they understood, like Nike, that its about making a style statement and not about technology.
Please make a video about the wireless industry and the big 3 carriers. I would love to see your take on their business practices
Man brings instant classics everytime
Thrift stores in my area are upcharging Under Armour, so much, it's wild. Only thing, I've ever bought that was from UA was a sweat pants and Jacket combo from the collab with The Rock. The quality on those items are unmatched. I was really suprised and payed whatever the Slavenation army was charging (like $30 total).
Haha I only buy items from The Rock line too and underwear (on sale) I don’t really care about anything else they carry.
Been thinking about it, here in South America we don't receive the same quality standard as the US, which brands do you think has the best quality in apparrel?
I wore under armour tank tops working as a package handler at UPS. They were great in the hot and humid summers
During the 'NIKESlayer era', I remember thinking about one or two points you mentioned here: 1. No flagship shoe. I can clearly remember me going through Nike, New Balance, Adidas and Converse as potential buys as I had a shoe that attracted me from each brand (and still have). I can clearly remember telling my colleagues at the time how Under Armour shoes look too techy, sharp and edgy without character, kinda like watered down Transformers. 2. The Stephen and Fitness app deals. I understood the point of it, but logically could justify spending that much with a clear problem described in point 1. It seemed there's too much money and they didn't know what to do. I was using 2 of those apps and stopped when UA bought them. Not sure if this is worth anything but at least I know some of my observations at the time were correct.
No timeless sneaker. All the competitors have a bread and butter they can churn out tear after year. You don’t want your shoe company to always be innovating every model.
Very interesting. Would love to see a deep dive on the connected fitness market with companies like Strava, Garmin, Apple Fitness/Health
love the new video structure
To me, Under Armor will always be defined by...well, their "under armor," the spandex-like long sleeve shirts and pants that you would wear underneath everything else when you're training outside and it's cold out. I was in high school when it came out in 03, and I was one of the first to wear something that was considered almost space-aged at the time. Never trusted their shoes, though, since they came off as somewhat of a "knock off" to me (I was a distance runner), and the magic disappeared after that, especially when they went mass market.
I have been using asics' gel kayano to run and never had a problem... A few years ago (maybe 2018) I ran using UA shoes. I recall it was around 7km on Christmas Eve... The next day I started to feel a weird discomfort in my feet... One week later I was diagnosed with plantar fasciitis... I discontinued the use of the UA shoe and have never bought another pair in my life... BTW recovering from plantar fasciitis was an uphill battle that eventually I won but I would never put myself in that position again by wearing non-reliable shoes...
@@robertodeleonplicet9089 It also had the added problem of being much too wide for my foot, like every other brand I know of save for Brooks and Nike
@@muke001That's an odd problem to have. I have to size up almost every Adidas shoe, leaving a ton of room in the front, just so that my feet can fit. And they aren't particularly wide... just not squeezed into an unhealthy shape as a kid, I guess.
@@kadajawi2 Funny you should say that as a couple of my toes on each foot overlap a little, necessitating a narrower toe box. It's not like I bounded my feet or anything, they just developed that way as a kid inadvertently!
This is what I came in here to say. The brand was built around those initial 'armor skin' type products and they did them so well that people bought them up and the brand blew up. But this happens so much with brands that are built on innovative products which can be easily duplicated by more established brands. There's nothing special about Under Armor clothes anymore from a performance standpoint and that was the only reason I paid a premium for their brand. They also tied their brand so tightly with those armor skin products that I can't connect 'shoes' with the brand. I get that they probably hired professionals to design them but I can't get myself to believe they can be on par or better than the established brands.
Thanks for the memory trip back to the speedform apollo, it was the most comfortable running shoes I had ever worn, being made in a bra factory like you said made a hell of a difference and it was clearly felt. To me it was way better than anything Nike, Asics, Mizuno, New Balance, or Adidas(really garbage at that time) had.
Then, they dropped the ball.
I've gone into their stores several times looking for a successor to the speedform apollo to no avail(HOVR is totally different imo), and have moved on to Nike's Free RN/Pegasus instead. Sports brands are defined by their shoes, if UA wants a comeback, they need to bring back the speedform with improved materials and design and skip the fake ultraboost nonsense
Great video! What I’m missing is the whole strong of the Dwayne the Rock Johnson ?!
But I really like the tone and your own opinion coming in a subtle way!
I love Under Armor for their iconic compression fit shirts and the running shoes I use every day
They were innovative like the "continuous heel insole to lining" to downright generic type of sneaker design. The midsole became thinner and thinner and some design with no rubber outsole protection. They even put super normal cheap EVA midsoles that looks like knock offs. Simply put they became too "safe" on their design and focusing on profits rather than function.
Steph Curry and Dwayne Johnson are doing some HEAVY lifting for UA this decade 🦾
I’m a huge UA/Project Rock fan though. Love their gear and as an avid runner, I’m a fan of their running gear (not so much the shoes though 😅).
Hope they can turn things around though 🙏🏽 great video!
Great analysis
Very good content and I love the information in it ❤❤❤. I think it will help more visually for changing the bar chart colours. For example, in your Nike vs under Armour vs Adidas chart, it's better to have the color representation to blue, red and white, instead of orange, red and white. Once again, really love the content thank you for giving us more knowledge. Liked subscribed😊😊. For the chart it's in 6:53.
I think it was probably used simply because "Nike Shoe Box Orange" is pretty synonymous with the brand.
I've never heard Adidas pronounced this way.
It's German and I believe it's the correct pronunciation
Under Amour did a mountain running series at Ikon pass mountains in 2017 and 2018. I did a 5K at Killington. Under Armour had contest and all though I lost by someone later that day, they gave my the shoe I used in the context after my race the following day. I actually prefer the trail running shoes they gave me over hiking boots when hiking.
I am thinking to get a pair of UA Sonic 6 for mountain running. I'm attracted by the fluorescent green, the tight fit, the heel cup for the ascent, and all that grippy, strong-looking rubber on the sole. But does the rubber rip off?
I am sick of rubber ripping off the soles of Nikes.
I am thinking to get a pair of UA Sonic 6 for mountain running. I'm attracted by the fluorescent green, the tight fit, the heel cup for the ascent, and all that grippy, strong-looking rubber on the sole. But does the rubber rip off?
I am sick of rubber ripping off the soles of Nikes.
10 year chart from $46 to $7. Wow, I looked into that stock years ago and the reason I didn’t buy it was all of their apparel was plastic and they were all in on Moisture Wicking, so no casual cotton clothes. People looked gross in the tight plastic t’s. I didn’t know until today what I missed. Yikes what a disaster.
Their charged cotton tees were fantastic. Haven’t seen a good one of those since around 2011. I miss the hell out of those.
I looked at it a couple years ago too. I just had a gut feeling that it wasn’t for me and that their shine was wearing off.
Deckers was a a way better buy.
Under Armour is still a great option for very specific products like training shirts, compression and basketball gear. Currys are still great shoes.
But I wouldn't buy anything else from them, and they're certainly nowhere near Nike or Adidas for general wear
There are also Nike ugly shoes..I bought one and it's easily damaged.
Under Armour is a case of a company too impatient to build a strong reliable brand slow and steady. Had they just focused on building a good reputable brand for the prosumer market, they'd probably not have ended up in hot water.
Their shoe design was just ugly. If they had good shoe designs, they would have been more successful.
@@sepg5084 the logo leaves something to be desired as well.
@@sepg5084they were known as a discount brand though
They really aren’t in any hot water.. their balance sheet looks pretty good, and their revenue is continuing to grow.
Very informative!
That one point of their shoes are ugly is the biggest and most important point to make . One other thing that killed them is their pricing , even though they've never been a cheap option they raised prices to an ridiculous level in the last 3 years . Even Nike who has crazy high prices look like the cheap option in comparison .
Under Armour all day, everyday.
I can't believe how bad they fumbled the Steph Curry shoe. They used all that name recognition to make the most generic, meh-looking shoe conceivable
It's like they didn't hire an artist
As a cold weather runner I love Under Armour's base layers and I actually think their quarter zip sweaters are quite fashionable. I wear them to work all the time
It would be nice for you to do a series for us non-educated folk about basic things like "What is a Private Equity Firm" or other base level things you learn in Business School
it's incredible that after going through this whole roller coaster of different eras, they still can't design a cool-looking shoe :/
I remember under armour apparel being really popular when I was in the Army. UA shirts and underwear were everywhere when I joined in 2009. I've been out for a while now so not sure if it's still popular. But it sure used to be.
Great research
What a nice thumbnail. It’s the reason I clicked on this video ❤
In my opinion Under Armour is an underrated company. Their shoes are some of the most comfortable I have ever worn. Almost everyone owns something made by UA and is practically a house whole name. The company itself is way undervalued.
Lol
Ferrari's aren't comfortable and one can hardly see the road, but they are Ferrari's.
Personally, I favor Under Armour due to their unique offerings. I'm a fan of their Highlight footwear series, offering taller-than-hi-top cleats and basketball shoes in flashy colors that I can't find with other brands.
I've never bought anything from them new, though. They've all been affordable second hand purchases.
great video! can you do a mattel one?
Great video!
Adidas' classic shoes like the sambas, Superstars and Stan smith's are coming back in style. That's what adidas has that Nike and UA don't, timeless designs from half a century ago
Since you mentioned it here, I’d looooove a full video on Stitch Fix. It’s a glorious rise and fall story. I used to work there and it was such a disaster. Really instructive case study as a “tech company” that, like UA, poured all their money into data and algorithms and software and failed to actually deliver good clothes and often clothes at all. Many days where I had to send two of the same sports bra in different colors to fill a box because inventory was that bad.
Wow. But not surprising. Everyone wants to get billionaire rich which usually requires tech-garbage as the foundation of your company. Hate this new model.
God, I had a stich fix sub for a few months, they sent absolute trash. Mostly just awful style. It fit because I gave them my dimensions, but wow it was bad. Poor quality as well. Canceled real quick
@@cjodyssey I just want to say that your stylist was probably trying their hardest! But all we had to work with was 20 different colors of the same “sport tank,” a few desperately ugly floral polyester blouses, and in most cases, maybe 2 pairs of jeans/pants that were 5 years out of style. I tried so hard as a stylist there but there were no stylish options for me to send. :( And yeah, the quality was terrible.
Was under armour one of the firsts to really push the moister wicking and compression clothes or did other brands already have something similar? Also if they were the first did they just capitalize on it?
Do love gym compression shirts . I've used them far ages
They never create a good looking shoes
As a European (Belgium) this was surprising... for me Under Armour is and always was a B-grade brand sold at cheaper, outlet style, stores. I had no idea that in the US it was seen as a serious brand.
True!
@geraldhaegeman5265
At least ON is not b grade.
Currently getting my MBA so this all intrigues me.
this was good one
Very good and enjoyable analysis. Should have stayed private, keep innovating to serve athletes and iterating on design for more casual appeal. Wall street greed claimed another one.
First time I saw and used UA was in 2006, I bought underwear and a t-shirt from an Army Surplus store and I loved them, I still use the underwear. From then on I started buying mostly UA underwear and then started noticing enter the market and expanding their product line but I also noticed that my garments were not lasting as long, I didn't like te new products as much as the old ones.
When I saw the UA shoes I started thinking of this brand as Nike (which I don't like) where te products are not as specialized looking to please a larger number of potential buyers and when I saw the UA logo in the App Store first thing I thought is I'm not using that, there is no value for me and they are gathering my data. I rater use apps that are really into activity tracking like Wahoo or Strata which are big players in their field.
I still buy UA underwear but don't care for any other of their products.
Great one
Hey man, some constructive criticism. Your transitions need a sound element. Anything, a bing, a ding, a ba dom bom tsh! I keep looking at my phone to see if it’s died whenever you start a new segment because the audio cuts so abruptly. Great video. The only reason I noticed this to the point of leaving a comment was because I listened to the whole thing. It had my full attention for the duration, it wasn’t just background noise for me to fill the silence with. Which is why those sharp sound cuts were so jarring. So really it’s a compliment as well as constructive criticism lol. Again, thanks for the fascinating video.
Valuetainment also had a great video of this
Love you for posting this. I'm a huge sneaker collector and big in fashion and i remember when people swore that brands ugly shoes and clothes would match with Nike or Adidas. It's hilarious to think they could beat the ugly allegations because of performance. The average consumer wants to be/look cool. They're not trying to lift weights lol.
But how do you explain Crocs then? Those certainly don't look cool by any stretch of the imagination. Yet somehow they managed to convince people otherwise
@@Sabundy crocs succeeded by offering just enough support while staying lightweight and relatively inexpensive, especially in more humid countries that people may not want to choose between traditional sandles
@@xephachiall I'm saying is that Crocs are fugly as hell. And yet they managed to be worn by people when going out and doing all types of things. Despite them sure as hell not looking either cool not fashionable. And I don't think humid is an excuse because I see people wearing them in winter with socks lol. So all I'm saying is that being ugly does not by itself prevent shoes from selling. Perhaps UA simply needs better marketing....
ASICS • HOKA • ON
@@Sabundy except crocs are a very unique style of shoe, whereas under armours shoes look very generic. being iconic has helped crocs considerably.
I think they hit the mainstream when they partnered with The Rock. They still give off that hardcore athletic vibe, i feel like i would need to look like The Rock to be able to pull off wearing a UA t-shirt.
Me and me missus really loved our charged rogue 2.5 schoes. They looked the part and they were super comfy.
We even got them for a good deal. However those things were certainly not build to last. Although we used them only for a couple of month for urban hiking that summer, the next summer they were already dead. The sole lost it's elasticity and collapsed, and the upper fabric started to tear and fall apart... just horrible durability. The basic nike runners which I bought the same year are still in ok condition after 3 years of heavy abuse... I don't know much about shoes, but I certainly know which brand will not get my money for my next pair...
The lack of talk about Stephen Curry in this video is nuts, his shoes literally sold around 160 million in 2016 alone, to say their increase of market share in the shoe industry was led by their running shoes is simply wrong. They literally signed him to a one billion dollar lifetime contract, he is the main guy for them in history
Curry and the Rock only thing keeping them alive
How have I never seen this channel?!
The lack of a quality/ attractive shoe is the biggest reason for the downfall in my opinion.
You are most likely right. At the end of the day all sports apparel brands are shoe companies. Hell.....even to this day 70% of Nike's earnings are from shoes. And UA totally dropped the ball on that one.
I haven't watched the video yet, but I find my 30$ under armor sneakers literally the best sneakers out there, they are comfy, sturdy and I bought 2 spare pairs of them, they are just that good
i love all of my under armour stuff
@@Gator159I actually run in salomon phantasm, but only because they were a gift, if I would buy shoes in the same price category I would probably choose under armor
I have 3 pairs of under armour shoes and I like them very much.its soft and lighter..to walk with😅
Recently bought some UA running shoes and for just a bit under $50 they're amazing.
They are BIG in indonesia. Most of my tshirts are UA: durable and good quality
so happy modern MBA uploaded
i loved the under armor face mask during covid, it was perfect
Great analysis. Just from a core business POV, UA still needs to improve its aesthetics, create signature shoes that last for a long time and find a way to be more appealing to the international market
Your videos are Soo good,but I would suggest you add background music, and little sound effects, it helps in retaining your audience,
Anyway it just my opinion, thank you for your videos, I have learnt alot.
NO MUSIC. Many of us watch channels like this WHILE listening to music.
*sometimes background music is distracting for adhd ness... sometimes.
I love this brand 😂
The clothes fit me really well!
Pricing is a key point.
Great video.
Couple of corrections: (6:57) you say Nike and Adidas both have thousand but the graph doesn’t show this. (18:16) you state that Kevin Durant’s Nike deal used 11% of the marketing budget but the graph says 5%.
And what you need to realize is that he can only show some many graphs at once, so the graph doesn't necessarily show every point made in every sentence.