Under Armour Executive Summary

Under Armour is an innovative company that has performed considerably well in the years following its establishment. The financial analysis of Under Armour indicates the strong financial performance and position of the company. In addition, Under Armour’s strengths and opportunities easily outweigh its weaknesses and threats, which make it a compelling company to both, customers and investors. Under Armour has been faced with three internal strategic situations since the commencement of its operations, including poor inventory management, lack of global exposure, and supply chain management issues. Also, Under Armour is faced with two external strategic situations since its inauguration, including inadequate market share and lack of proprietary

The inventory turnover ratio of Under Armour increased from 2.04 times in 2008 to 2.99 times in 2012, as calculated in Appendix E. The financial information provided in the case is limited; thus, the inventory turnover ratio cannot be compared to its industry rivals. However, it is evident that Under Armour’s inventory turnover is slowly improving as they are gaining more market exposure, and thus selling more products.

Lastly, the return on equity (ROE) ratio is a profitability measurement that determines the amount of profit Under Armour has yielded from the shareholders’ investments. Under Armour’s ROE increased from 11.55% in 2008 to 15.76% in 2012, as calculated in Appendix F. Under Armour experienced an exceptional and promising ROE due to still being in the growth stage. However, the management of Under Armour should try to maintain the high ROE to stay compelling to investors in the sportswear

Under Armour has several strengths including product innovation, wide variety of product offerings, outstanding reputation, and financial stability.

First, product innovation in terms of technical and aesthetic design, mentioned earlier as a key success factor, is one of Under Armour’s main strengths. Under Armour has maintained a continuous effort of satisfying the changing needs of the athletic industry with new and innovative technology. For example, Under Armour has three variations of its apparel gear, including HeatGear for hot weather conditions, ColdGear for cold weather conditions, and AllSeasonGear for all different weather conditions.

Second, Under Armour is not only an innovative company, but it has also been successful in producing a wide array of products serving precise sports. The product offering of Under Armour consists of high-tech clothing, footwear, sports equipment, and accessories. Each of these products are provided for various sports, including football, baseball, basketball, hockey, golf, soccer, rugby, swimming, and