The global sportswear market is large and expanding, projected to reach $231.7B by 2024, providing a powerful tailwind for growth (p. 10, para. 2).
The Asia-Pacific region is the "fastest growing region" for sportswear, representing UA's single greatest opportunity for expansion (p. 10, para. 2).
The trend of wearing athletic apparel in casual settings creates a massive new market segment that blends performance with fashion (p. 9, para. 2).
E-commerce is growing 5x faster than retail, allowing brands to bypass failing retailers and build direct customer relationships (p. 10, para. 1).
Emerging tech like conductive yarns and smart chips creates an opportunity for a next-generation product category and first-mover advantage (p. 9, para. 4).
DTC models allow firms to "collect accurate data on customers' habits" to tailor marketing and build loyalty (p. 10, para. 1).
Nike's footwear and equipment sales declined in North America, creating a potential opening for UA to gain market share (p. 8, para. 2).
A global cultural shift towards healthier lifestyles expands the total addressable market for performance gear (p. 9, para. 2).
Offering personalization (like NikeID) can combat declining brand loyalty and justify premium prices (p. 9, para. 5).
Fragmenting fitness subcultures create an opportunity to target and dominate specialized niches with authentic gear (p. 3, para. 4).
Nike and Adidas are 5-7x larger and have "much larger resources to draw upon," making long-term competition difficult (p. 7, Ex. 9).
The bankruptcy of major partners like The Sports Authority poses a direct and immediate threat to a major portion of UA's sales (p. 1, para. 3).
The rise of "brand polygamists" increases rivalry, erodes profit margins, and threatens UA's premium brand positioning (p. 9, para. 5).
Lacking patents, UA's innovations are quickly copied, turning its performance features into commodities (p. 7, para. 2).
UA competes with its own retailers' store brands, which receive preferential placement and squeeze floor space (p. 7, para. 3).
A cultural shift back to formal work attire could reduce the size of this crucial market as offices reopen (p. 9, para. 2).
The consolidation of sales on platforms like Amazon gives them immense power to dictate terms and squeeze margins (p. 1, para. 3).
Smaller competitors like Lululemon are out-maneuvering UA in key growth segments like the women's market (p. 10, para. 4).
Partnerships with non-athletes like A$AP Rocky risk damaging the brand's core performance authenticity (p. 10, para. 4).
After a 50% stock decline, intense pressure from Wall Street can force a focus on short-term fixes over long-term strategy (p. 1, para. 3).