An Undervalued Global Athletic Brand With a Growing Moat
Under Armour's restructuring plans will create short-term choppiness but support long-term growth potential.
Under Armour has evolved into a global athletic brand spanning performance apparel, footwear, and accessories, and we think its competitive advantage is strong and growing.
We assign the firm a narrow moat. The company possesses an intangible asset in a brand with a reputation for performance and innovation. We believe consumers will continue to pay a premium for the Under Armour label, and retailers will continue to support the brand for the traffic and margins it generates. Recent and ongoing sponsorship deals--including with Major League Baseball--give us high confidence that the Under Armour brand will be sought after for at least the next five to 10 years.
R.J. Hottovy does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.