Rise and Fall of Under Armour in 2023 | What happened to Under Armour? Is Under Armour bankrupt?
# The Rise and Fall of Under Armour
## Sales, Sales, and More Sales
How Under Armour came about is the American Dream at its finest. The founder of Under Armour, Kevin Plank, began to solve a problem in 1996. A college football player at the University of Maryland, Plank found himself dealing with the recurring problem of sweaty cotton t-shirts and athletic wear that didn’t absorb his sweat. This discomfort led him to create a sportswear line using compression shorts material. Plank maxed out his credit cards and took out a Small Business loan to start his business, trademarking the name Under Armour. Starting in his grandmother’s basement, Plank sold his products to college teams and NFL teams, gaining traction and growing sales rapidly.
## Hollywood Momentum
In 1999, Under Armour’s products appeared in the film « Any Given Sunday, » propelling the brand to new heights. Staff members even forwent their paychecks to place an ad in ESPN, resulting in a significant increase in sales. By 2001, Under Armour became the official supplier for the NHL and made licensing deals with Major League and USA Baseball. The brand’s presence in major retailers expanded, and by 2002, 2,500 retailers nationwide carried Under Armour.
## Diversifying its Offerings…But Not Necessarily for the Better
As Under Armour’s sales skyrocketed, the company diversified its product categories. It ventured into performance underwear in 2002 and invested in TV commercials like « We Must Protect This House » in 2003. By 2004, Under Armour reached $200 million in sales. However, the company’s rapid expansion led to it trying to be a sportswear-lifestyle-tech company all at once. In 2005, Under Armour went public on NASDAQ, with its stock price doubling on the first day of trading. Despite strong brand recognition among youth, analysts remained cautious about Under Armour’s future success.
The journey of Under Armour showcases the highs and lows of entrepreneurship and the challenges of sustaining success in the competitive sportswear industry. As the brand navigates its way through changing trends and consumer preferences, only time will tell if it can regain its former glory or face further setbacks in the market.
source