The Underdog Makes a Comeback

Context

“The Underdog” is how Kevin Plank, founder and CEO of Under Armour, describes the soul of the brand he built from scratch.

It’s a sentiment that echoes through locker rooms and boardrooms alike – and in recent years, one that’s been tested in battle.

Under Armour is the smallest and youngest player in the elite league of sportswear giants, trailing behind Nike, Adidas and Puma. But being an underdog signals Under Armour’s posture of readiness. It’s the mindset of a company that’s had to fight for every inch of market share and respect.

Still, even seasoned warriors lose their footing. And for Under Armour, the past few years have been nothing short of a corporate firefight.

Real-Life Story

Founded in 1996, Under Armour was born out of Plank’s frustration on the football field. The cotton shirts worn under pads soaked up sweat like sponges, weighing athletes down.

Plank’s idea was simple yet game-changing: moisture-wicking microfibre shirts that kept athletes cool, dry, and combat-ready. The gear was a hit, quickly winning favour with NFL teams and college sports programmes.

The company marched confidently into the 2000s, going public in 2005 and breaking the US$1bn annual sales mark by 2010. At its peak, Under Armour was a rocket ship, posting year after year of record growth. It wasn’t just a scrappy disruptor anymore — it was gunning for Nike’s throne.

But 2016 marked the beginning of a long retreat. The bankruptcy of Sports Authority, a major distribution partner, cut off a key supply line. Meanwhile, shifting consumer behaviour, a surge in e-commerce, and the rise of athleisure left Under Armour exposed.

In an attempt to hold the line, it turned to aggressive discounting and expanded into outlet stores. These tactics might have bought time, but they blunted the brand’s premium edge. Instead of playing offence, Under Armour found itself in a defensive crouch, with no clear identity and no dominant category to anchor it.

Competitors like Nike and Adidas capitalised on the confusion. Adidas, for one, leapfrogged Under Armour to reclaim the No. 2 spot in US sportswear. Under Armour’s positioning became muddled — was it performance gear, street wear, or something in between?

Then came a barrage of internal issues. The company was investigated for its accounting practices and accused of misleading investors. A toxic workplace culture and allegations of inappropriate executive conduct only deepened the crisis. Trust – with consumers, investors, and employees – was compromised.

Leadership churn followed. Plank stepped down as CEO in 2020, handing command to Patrik Frisk. But within two years, Frisk was out, replaced by Marriott alum Stephanie Linnartz in 2023. Her tenure lasted barely a year. The chain of command was in disarray, and the troops were demoralised.

Regroup, Refocus, Relaunch

In 2024, Plank returned to the helm like a general recalled to stabilise the front lines. He wasted no time initiating a reboot.

Plank ordered a 25% reduction in product offerings, cutting dead weight to focus firepower on high-performance gear and footwear – the core products where Under Armour still had credibility. Promotions and discounting were scaled back, part of a campaign to restore the brand’s premium positioning and stop eroding margins.

Speed became the name of the game. Faster go-to-market timelines allowed Under Armour to introduce new innovations more frequently, keeping the product line fresh and the competition on their toes.

The company also slashed overheads: subleasing retail space, trimming inventory, and laying off staff. The cost savings were channelled back into marketing, product development, and loyalty programmes – reinforcing supply lines to win over hearts and wallets.

A broader restructuring campaign was launched, with a war chest of $140m to $160m earmarked to close distribution centres and streamline operations.

SG&A costs were reduced by 13% in the fiscal second quarter of 2025. Gross margins – often a company’s first line of defence – improved by 200 basis points to nearly 50%, aided by reduced freight costs and a favourable sales channel mix.

Holding the Line

The fight isn’t over. Revenues in the second and third quarters of 2025 held steady at $1.4bn each – still lower year-on-year but above expectations. The market has taken notice. The stock surged nearly 30% following stronger-than-anticipated earnings and signalled renewed investor confidence.

The company is now leaning into its “underdog spirit” – a rallying cry for resilience, grit, and self-belief. It’s no longer trying to outspend or out-glamour the competition. It’s playing to its strengths: innovation, performance, and authenticity.

PostScript: In military parlance, Under Armour is no longer scrambling for cover. It’s dug in, rearmed, and plotting its next offensive. Plank’s return marks more than a leadership reshuffle – it’s a recommitment to mission discipline.

The brand that once threatened Nike’s dominance is now learning to march again, one steady step at a time. Whether this campaign leads to glory or another stalemate remains to be seen. But if history favours the bold, Under Armour – the perennial underdog – may yet write its next chapter in victory.

Key Lessons

1) Don’t Mistake Momentum for Invincibility

Rapid growth can breed complacency. Just because you’re winning today doesn’t mean your model will hold tomorrow. Keep scanning the battlefield for threats and stay humble enough to adapt before your enemies force your hand.

2) A Strong Brand Needs a Sharp Identity

Without a clear identity, even great products get lost in the fog. Know what you stand for and communicate it relentlessly. If customers are confused about your purpose, they won’t stick around when rivals offer clarity and confidence.

3) Premium Pricing Demands Premium Discipline

Discounting can quickly become a crutch. Once customers get used to markdowns, they stop seeing value at full price. Protect your margins like a frontline — pricing strategy is as much about perception as it is about profitability.

4) Product Bloat Drains Resources 

Too many offerings dilute focus. Trim the fat and double down on your core arsenal. A lean product line gives you speed, precision, and better allocation of talent and capital – all of which are critical in wartime operations.

Find Out More

Do you want to learn more about the practical tools noted above? Are you aiming to find the right support for scaling up your business?

Feel free to click the button below if you feel you might need help.

Until next week, may the force be with you.

Kevin

P.S. Enjoyed this newsletter? Forward it to a friend and have them sign up here.

Whenever You’re Ready, Here are 4 Ways We Can Help You …

1. Business Turnaround and Transformation Tools, including templates, checklists, and dashboards

2. MasterMind Sessions - to teach you how to execute business turnarounds and transformations

3. One-on-One Calls - for mentoring with our expert panel

4. Promotion - amplifying the message of your business through sponsors