- Under Armour is losing ground in sports apparel to old brands like Puma and New Balance.
- The company dealt with inventory problems for a period in 2017.
- Competition may increase going forward, as strengthening brands enter markets Under Armour has a footprint in.
Not too long ago, Under Armour was the darling of the athletic apparel industry, and was viewed as a threat industry giants Nike and Adidas. But that was before the company’s stock plunged by roughly 80% between mid-2015 and mid-2017. Now its at risk of falling into fifth place, behind New Balance.
“There are few $5 billion athletic brands in the global marketplace (let alone those that have surpassed that milestone),” Wedbush analyst Christopher Svezia wrote in a note to clients. “These brands also tend to have a broader product focus, embracing lifestyle more comprehensively, including Puma, New Balance and Asics.”
Puma has historically been a straggler behind Under Armour, but recently passed it as…