Under Armour (UAA) risk factors, FY2026 10-K

Other

1. 01Economic and Industry Risks
2. 02Our business depends on consumer purchases of discretionary items, which can be negatively impacted during an economic downturn or periods of inflation. This could materially impact our sales, profitability, results of operations and financial condition
3. 03Our financial results and ability to grow our business may be negatively impacted by global events beyond our control81% rewritten
4. 04and changes in local economic conditions in countries where our stores, customers, manufacturers and suppliers are locatedNew
5. 05We operate in highly competitive markets and the size and resources of some of our competitors may allow them to compete more effectively than we can, resulting in a loss of our market share and a decrease in our net revenues and gross profit48% rewritten
6. 06endorsement, adopting aggressive pricing policies and engaging in lengthy and costly intellectual property and other disputesNew
7. 07Our profitability may decline or our growth may be negatively impacted as a result of increasing pressure on pricing21% rewritten
8. 08Fluctuations in the cost of raw materials and commodities we use in our products and costs related to our supply chain could negatively affect our operating results34% rewritten

Business and Operational Risks

1. 09We derive a substantial portion of our sales from large wholesale customers. If the financial condition of our customers declines, our financial condition and results of operations could be adversely impacted
2. 10We may not successfully execute our long-term strategies, which may negatively impact our results of operations37% rewritten
3. 11If we are unable to anticipate consumer preferences, successfully develop and introduce new, innovative products, and engage our consumers, or if consumer preferences shift away from performance products, our sales, net revenues and profitability may be negatively impacted
4. 12Consumer shopping and engagement preferences and shifts in distribution channels continue to evolve and if we fail to adapt accordingly our results of operations or future growth could be negatively impacted57% rewritten
5. 13A decline in sales to, or the loss of, one or more of our key customers could result in a material loss of net revenues and negatively impact our prospects for growth
6. 14The value of our brand and sales of our products could be diminished if we are associated with negative publicity
7. 15We must successfully manage the increasingly complex operations of our global business, including continued expansion in certain markets where we have limited brand recognition, or our business and results of operations may be negatively impacted
8. 16Our results of operations could be materially harmed if we are unable to accurately forecast demand for our products
9. 17We rely on third-party suppliers and manufacturers to provide raw materials for and to produce our products, and we have limited control over these suppliers and manufacturers and may not be able to obtain quality products on a timely basis or in sufficient quantity
10. 18Labor or other disruptions at ports or our suppliers or manufacturers may adversely affect our business
11. 19If we fail to successfully manage or realize expected results from significant transactions or investments, or if we are required to recognize an impairment of our goodwill or other intangible assets, it may have an adverse effect on our results of operations and financial position
12. 20Climate change and an increased regulatory and stakeholder focus on sustainability and social matters may have an adverse effect on our brand, sales of our products and our results of operations56% rewritten
13. 21The costs and return on our investments for our sports marketing sponsorships may become more challenging and this could impact the value of our brand image
14. 22If we encounter problems with our distribution system, our ability to deliver our products to the market could be adversely affected
15. 23We rely significantly on information technology and any failure, inadequacy or interruption of that technology could harm our ability to effectively operate our business34% rewritten
16. 24Our future success is substantially dependent on the continued service of our senior management and other key employees, and our continued ability to attract and retain highly talented new team members
17. 25We may not fully realize the expected benefits of our restructuring plans or other operating or cost-saving initiatives, which may negatively impact our profitability

Financial Risks

1. 26Our credit agreement contains financial covenants, and both our credit agreement and debt securities contain other restrictions on our actions, which could limit our operational flexibility or otherwise adversely affect our financial condition
2. 27We may need to raise additional capital to manage and grow our business, and we may not be able to raise capital on terms acceptable to us or at all
3. 28Our operating results are subject to seasonal and quarterly variations in our net revenues and income from operations, which could adversely affect the price of our publicly traded common stock
4. 29Our results of operations are affected by the performance of our equity investments, over which we do not exercise control
5. 30Our financial results could be adversely impacted by currency exchange rate fluctuations

Legal, Regulatory and Compliance Risks

1. 31Our business is subject to a wide array of laws and regulations, and our failure to comply with these requirements could lead to investigations or actions by government regulators, increased expense or reputational damage54% rewritten
2. 32Data security or privacy breaches could damage our reputation, cause us to incur additional expense, expose us to litigation and adversely affect our business and results of operations31% rewritten
3. 33Changes in tax laws and unanticipated tax liabilities could adversely affect our effective income tax rate and profitability76% rewritten
4. 34Failure to protect our intellectual property rights, or our conflict with the rights of others, could damage our brand, weaken our competitive position and negatively impact our results of operations
5. 35We have been involved in legal proceedings that have resulted in significant expense, and we may be involved in legal proceedings in the future that could have a material adverse effect on our business, reputation, financial condition, results of operations or stock price50% rewritten

Risks Related to our Common Stock

1. 36Kevin Plank, our founder and President and Chief Executive Officer, controls the majority of the voting power of our common stock
2. 37The trading prices for our Class A and Class C Common Stock may differ and fluctuate from time to time