Great time to buy.
75% of the kids 8-14 I see now a days wear UA. 24% wear Nike. Adidas shares the 1% with Chuck Taylor's. These kids become adults and bring their brands with them. My generation started wearing Nike over Converse in the 80's and made Uncle Phil a rich man. My kid's 13, if I bought her something Nike she'd flip. "Ewwww Dad, Nike's for oooold people." UA has already won. Buy Buy Buy.
UA is like Adidas in the late 80's and Reebok in the mid-90's, ultimately a good run for a number of years but beginning to come down to earth.
It should come as no surprise that they have a huge fight on their hands.
They've always been far too reliant on apparel, their growth wasn't going to last forever, they've tapped out on their American consumers in most apparel categories, and they have a poor international presence.
Likely within another year or two their footwear growth will come to a halt. Plank has been trying to focus on the international market which is going to be far tougher going up against the decades of dominance Nike & Adidas have overseas. Not many hunters and middle-class white kids to sell hoodies to in Europe.
Huge amounts of money tied up in investments, a growing debt load, and the CFO leaving aren't great signs, either.
I think UA will go into a little bit of a funk for a year or two but keep working on its casual sportswear, footwear, and international presence. I think they'll be fine long-term but anyone who really thought they'd challenge Nike was crazy.
We may have just witnessed the peak of Under Armour over the last couple years and they were still dwarfed by Nike and recently passed by Adidas. They'll probably settle long-term as a slight #2 over Adidas or vice versa.
UA hasn't won anything. In fact, I've heard this sentiment numerous times (all the kids wear UA now!) yet the numbers don't show this at all. It's been an admirable rise for UA since 2005 but it's a long, long fight against Nike and Adidas.