Have you ever watched a company you once admired struggle, only to wonder if it could ever reclaim its former glory? That’s the question swirling around Under Armour, a brand that once dominated the athleticwear scene but has faced a bruising decade. Its stock is down 34.5% this year alone, trading at levels not seen since 2010. Yet, amid the gloom, one analyst from a major financial firm is waving a flag of optimism, predicting a brighter future by 2027. Could this be the inflection point for Under Armour, or is it just another false dawn?
A Brand at a Crossroads
Under Armour’s journey hasn’t been smooth lately. The company, once a darling of the athleticwear world, has struggled to maintain its edge against giants like Nike and Adidas. Reports of CEO Kevin Plank selling personal assets have only fueled concerns about the company’s stability. But let’s pause for a second—does a CEO’s personal financial moves always spell doom for a company? I’ve seen cases where they don’t, and Under Armour’s story might just be one of them.
Despite the bearish mood on Wall Street, one analyst from a prominent financial institution believes the tide could turn. Their bold prediction? By 2027, investor sentiment will flip from negative to positive, driven by a trio of strategic moves: innovation, premiumization, and storytelling. Let’s dive into what this means for Under Armour and why it might just work.
Innovation: The Heart of the Comeback
Innovation isn’t just a buzzword for Under Armour—it’s a lifeline. The company has been pouring resources into new products that could redefine its place in the market. Take the Velociti Elite 3 running shoe, for instance. This isn’t just another sneaker; it’s a performance beast that helped Sharon Lokedi smash the women’s course record at the Boston Marathon in May 2025. That’s the kind of win that gets people talking.
Innovation is the spark that can reignite a brand’s momentum.
– Industry analyst
But it’s not just about shoes. Under Armour’s NEOLAST fiber, a cutting-edge material, is set to debut in performance tees next year. This isn’t some minor tweak—it’s a game-changer that could make Under Armour’s apparel lighter, stronger, and more appealing to athletes. The company plans to roll out multiple versions of the Velociti shoe this fall, alongside other footwear innovations. If they pull this off, it could signal to investors that Under Armour is serious about reclaiming its spot at the top.
- Velociti Elite 3: A high-performance running shoe already making waves.
- NEOLAST fiber: A new material for lighter, more durable apparel.
- Product pipeline: New footwear and apparel launches planned for the next year.
I’ve always believed that innovation is the lifeblood of any company trying to stage a comeback. Under Armour seems to get that, but the real test will be whether these products resonate with consumers. If they do, the stock could see a serious boost.
Premiumization: A New Chapter for the Brand
Under Armour isn’t just innovating—it’s repositioning itself as a premium brand. This might sound like corporate jargon, but hear me out. The company is streamlining its product lineup, cutting its SKU count by 25% to focus on its top performers. Why? Because flooding the market with low-priced gear was dragging the brand down. Instead, they’re introducing a tiered pricing strategy: good, better, best. It’s a smart move that could shift perceptions and margins.
Think about it—when you see a brand like Apple or Tesla, you don’t think “cheap.” You think quality, exclusivity, innovation. Under Armour wants to play in that league. By introducing higher-priced, premium products, they’re betting that consumers will pay for quality. And with their new innovations, they might just have the credibility to pull it off.
| Strategy | Focus | Impact |
| SKU Reduction | Focus on top 10 products | Streamlined offerings, better margins |
| Tiered Pricing | Good, better, best products | Higher price points, premium perception |
| Innovation Push | Velociti shoes, NEOLAST fiber | Enhanced brand credibility |
Will this work? I’m cautiously optimistic. Premiumization isn’t just about slapping a higher price tag on products—it’s about convincing consumers you’re worth it. Under Armour’s focus on quality and innovation gives them a shot, but they’ll need to execute flawlessly.
Storytelling: Building Brand Heat
Here’s where things get interesting. Under Armour’s leadership admits they’ve dropped the ball on brand storytelling in the past. They had great products but failed to connect them to a compelling narrative. That’s changing. The company is rolling out marketing campaigns that tie their products to the Under Armour ethos—grit, performance, leadership.
A brand without a story is just a product. A brand with a story is a movement.
– Marketing expert
During a recent industry event, Under Armour showcased campaigns that felt fresh and impactful. These aren’t just ads—they’re stories that position the brand as a leader in sports. Imagine a campaign featuring an underdog athlete, powered by Under Armour gear, defying the odds. That’s the kind of narrative that could get people excited again.
In my experience, storytelling is what separates good brands from great ones. Under Armour seems to be catching up, but they’re playing in a crowded field. Can they stand out? I think they can, if they lean into authenticity and avoid the generic inspirational fluff we’ve all seen before.
The Challenges Ahead
Let’s not sugarcoat it—Under Armour faces headwinds. Tariffs could hit sales and margins hard in 2026, and the broader market isn’t exactly cheering for them. The stock’s 34.5% drop this year reflects a deep skepticism among investors. Why the bearish vibe? Some point to Kevin Plank’s personal asset sales as a red flag, though I’d argue that’s more noise than signal.
The bigger issue is execution. Innovation, premiumization, and storytelling sound great on paper, but they’re tough to pull off in a competitive market. If Under Armour stumbles on product launches or fails to connect with consumers, the turnaround could stall.
- Tariff Impact: Potential sales and margin pressure in 2026.
- Execution Risk: New products and campaigns must deliver.
- Market Competition: Nike and Adidas aren’t standing still.
Still, every turnaround story has its doubters. The question is whether Under Armour can prove them wrong. I’ve seen companies bounce back from worse, and Under Armour’s brand equity is still a powerful asset.
Why 2027 Could Be the Year
So, why does one analyst see 2027 as the turning point? It comes down to timing. The tariff headwinds should ease by then, and Under Armour’s new products will have had time to gain traction. If the premiumization strategy works, higher margins could start showing up in earnings reports. And if the storytelling clicks, the brand could regain its cultural relevance.
Perhaps the most intriguing aspect is the analyst’s confidence in Under Armour’s brand equity. Despite the stock’s decade-long slide, the Under Armour name still carries weight. Athletes, casual gym-goers, and even investors remember what the brand once stood for. If the company can harness that nostalgia and pair it with fresh innovation, 2027 could indeed mark a new chapter.
Brand equity is like a bank account—you can draw on it, but you have to keep making deposits.
– Financial strategist
I’m not saying it’s a sure thing. Turnarounds are tricky, and Under Armour has a lot to prove. But if they can execute on these three pillars—innovation, premiumization, and storytelling—they might just surprise the skeptics.
What Investors Should Watch
If you’re an investor eyeing Under Armour, what should you keep on your radar? First, watch the product launches. The success of the Velociti shoe line and NEOLAST-based apparel will be early indicators of whether the innovation plan is working. Second, keep an eye on margins. If the premiumization strategy takes hold, you should see improved profitability by 2027. Finally, pay attention to consumer sentiment—social media buzz, athlete endorsements, and campaign traction will tell you if the storytelling is resonating.
Key Metrics to Monitor: - Product Launch Success: Sales of Velociti shoes and NEOLAST apparel - Margin Growth: Impact of premium pricing - Brand Sentiment: Social media and campaign engagement
In my view, the next 12-18 months will be critical. If Under Armour can show progress on these fronts, the stock could start to recover. But if they falter, the bearish sentiment might linger.
Final Thoughts: A Risky but Intriguing Bet
Under Armour’s story is one of resilience, ambition, and a whole lot of risk. The company’s been knocked down, but it’s not out. With a renewed focus on innovation, a push to go premium, and a smarter approach to storytelling, there’s a real chance they could turn things around by 2027. But the road ahead is fraught with challenges, from tariffs to fierce competition.
So, is Under Armour a buy? That’s for you to decide. I’ll say this: the potential for a comeback is there, but it’s not a slam dunk. If you’re a risk-taker with a long-term view, this might be one to watch. For now, I’m rooting for Under Armour to rediscover its mojo—because who doesn’t love a good underdog story?
What do you think—can Under Armour pull off this turnaround, or is it too little, too late? The next few years will tell the tale.
