At its peak in Sept. 2015, Under Armour was USD 53 a share. It had just passed Adidas to become the second-largest sportswear brand in America. Kevin Plank, a former football player, who started the company with USD 17,000.00, was on every cover. Today the stock trades at USD 4.34.
The company that once had a market cap of USD 15 billion is now worth USD 1.94 billion. For comparison, Nike is worth USD 115 billion. Lululemon, a yoga brand, does more revenue.
Under Armour did not die in one big scandal. It died of a thousand cuts. And these cuts are a lesson for every brand in Karachi, Lahore, or Dubai that wants to play global.
- The numbers tell the story.
In Q4 2025 Under Armour reported revenue of USD 1.3 billion, down 11 percent year-on-year. Full-year revenue was USD 5.7 billion. The year later is worse. Revenue declined to approx. USD 5.0 billion. Major regions posted a decline. North America, the core market, saw an 11 percent drop. Asia Pacific recorded the steepest fall at 27 percent. Apparel declined 11 percent, footwear 17 percent.
- Why it went under — four mistakes:
Mistake 1: Stuck in the middle.
Under Armour tried to be everything. It was not the best-performing running brand—Hoka and ON took that. It was not premium athleisure—Lululemon took that with USD 11.1B revenue. It was not basketball culture—Jordan and Nike took that.
Mistake 2: The discount death spiral.
From 2017 North American revenue, which is 77 percent of total sales, began declining and never fully recovered. Deep discounting didn’t help.
Mistake 3: Leadership churn.
Plank stepped down in 2020. His replacement lasted two years. The next lasted 13 months. Plank returned in April 2024. The stock was USD 7 after cycling through three CEOs.
Mistake 4: Forgetting the customer
Forget the data. The customers no longer reposed any trust in Under Armour products.
- The expensive reset.
A reset plan is currently underway. Overseen by Kevin Plank. Will it work?
Lessons for this part of the world.
For brands in Pakistan and GCC, the lesson:
- You cannot out-NIKE Nike.
Under Armour tried. Lululemon won by owning premium yoga wear. ON by owning running. What do you own?
- SKU is ego.
Under Armour had too many products. The best regional brands—Servis Shoes, Khaadi, Al Baik—win by selling a few products very well, at full price.
- Women are the market.
The women’s activewear market was valued at USD 42B. Under Armour failed five times to build for it.
- Direct-to-consumer is not a website.
It is trust. Consumers must return, return, return.
Under Armour did not go bankrupt. It went irrelevant. And in apparel, that is worse. The company had once said it would protect athletes; it could not protect its own house.
Bottom line for Pakistan:
Under Armour died trying to be Nike for Americans. Servis, Bata, and Gymarmour will live if they try to be Bata, Servis, and Gymarmour for Pakistanis.
Copyright Business Recorder, 2026
The writer is the former Executive Director of the Management Association of Pakistan
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