Under Armour's Pricing Strategy: How Kevin Plank Is Killing SKUs to Go Premium Against Nike and Lululemon

Under Armour is the rare case of a $5 billion brand deliberately shrinking itself to grow profitability. CEO Kevin Plank returned in 2024 with a simple thesis: sell fewer products at higher prices. The result? Revenue dropped 9% in FY2025, but gross margin climbed 180 basis points to 47.9%. That trade-off — volume for margin — is one of the hardest calls in DTC, and Under Armour is making it at scale. Here's why that matters for your brand:

Under Armour's pricing spans a wide range, but the sweet spot is narrowing by design. Apparel clusters between $20 and $80, with the iconic UA Tech 2.0 tee anchoring the entry point at $20 and the Flex Fleece Hoodie marking the top at $80. Footwear runs $20 (slides) to $160 (Velociti Distance). The deliberate elimination of low-margin "good" tier products means fewer products under $30 and more emphasis on the $40–$80 performance range.

Compare that to Nike, where performance lines start at $25 but quickly climb past $120, or Lululemon, where the entry point for leggings is $88. Under Armour occupies a middle ground — cheaper than Nike's premium tiers but more expensive than Gymshark's $26–$68 range. The turnaround strategy is pushing UA closer to Nike territory by cutting low-end SKUs and investing in premium products.

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Compression and performance training gear is the hero category. HeatGear Elite compression tops at $50–$55 represent Under Armour's core brand DNA — the technology-driven performance apparel that Kevin Plank originally founded the company to build. This category commands the highest price points in apparel and carries the strongest brand equity.

The UA Tech 2.0 is the gateway product. At $20, it's the cheapest branded training tee from any major performance brand. A customer buys the Tech 2.0, likes the fit, then upgrades to $50 HeatGear compression gear. Kevin Plank raised this tee to $25 as part of the premium push — still accessible, but signaling the brand won't race to the bottom.

Notice how footwear prices reach well above apparel. The Curry 13 at $140 and UA Velociti Distance at $160 position Under Armour competitively against Nike's performance running line ($130–$180) while the brand's advertising strategy increasingly showcases these premium products.

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Under Armour sits in the mid-premium zone — cheaper than Nike and Lululemon, more expensive than Gymshark. They undercut Lululemon by 30–50% on comparable categories, sit 10–20% below Nike on performance gear, and price above Gymshark by roughly 20–40%. Against Adidas, UA competes head-to-head on most categories.

The Nike gap is Under Armour's biggest strategic challenge. Nike's performance lines start close to UA's prices ($25 vs $20 for basic tees) but the brand commands a significant premium at the high end. UA's entire apparel range tops out around $80, while Nike routinely sells hoodies and jackets at $120+. Kevin Plank's strategy is to close this perception gap without the heritage advantage Nike holds.

Gymshark is the disruptor from below. With 100% DTC distribution, Gymshark undercuts Under Armour on most categories while maintaining strong margins. A full Gymshark outfit costs $90–$130 vs UA's $100–$180. UA's wholesale-heavy model (roughly 60% of revenue) means they compete against their own products at markdown prices in department stores — something Gymshark's DTC-only model avoids entirely.

Under Armour's discount strategy is being overhauled as part of the turnaround. Historically, the brand was known for aggressive promotions and deep discounting through outlets and wholesale partners. Kevin Plank's return brought a deliberate pull-back: fewer promotions, less outlet inventory, and a focus on protecting full-price sales. The goal is to retrain consumers to buy at full price.

Annual Discount Calendar

The UA Rewards Program

Under Armour's loyalty program replaces discounts with perks. UA Rewards is a free points-based program offering early access to new releases, birthday double points, and exclusive member events. The strategy mirrors the broader shift: instead of training customers to wait for sales, reward them for buying at full price. This approach is similar to how Nike's SNKRS app drives full-price purchases through exclusivity.

Under Armour is executing the hardest move in brand strategy: moving upmarket without losing your base. They're not trying to be Lululemon (yoga-lifestyle) or Gymshark (community-first DTC). They're doubling down on performance — team sports, training, and competition — and pricing accordingly. The question is whether consumers will follow.

The Positioning Playbook

Under Armour's brand repositioning rests on four pillars:

• Performance DNA: The original compression technology — HeatGear, ColdGear, and Storm product lines — remains the core differentiator against lifestyle-first competitors like Lululemon and Gymshark
• Team Sports Heritage: Deep roots in American football, baseball, and basketball through partnerships like the Curry brand — a distribution channel that lifestyle brands cannot replicate
• Premium Fewer: "Sell more of less" — reducing SKUs by 25%, cutting materials by 30%, and investing in higher-quality "better" and "best" tier products
• Global Expansion: EMEA revenue held flat ($1.1B) while North America declined 11% — international markets are the growth engine while the home market is restructured

If you're a DTC brand, Under Armour's pricing story is a masterclass in repositioning under pressure. Their willingness to sacrifice $500M+ in annual revenue to improve margins is the kind of strategic discipline most brands talk about but never execute. The data above shows exactly where Under Armour sits relative to competitors, and the patterns below show how to apply those lessons. Whether you're considering your own content and SEO strategy or rethinking social media positioning, pricing touches everything.

Frequently Asked Questions

How much does Under Armour apparel cost?

Under Armour apparel ranges from about $20 for a UA Tech 2.0 t-shirt to $80 for a Flex Fleece Hoodie. Compression tops run $50–$55 (HeatGear Elite line), shorts sit at $40–$50 (Vanish Woven), and training pants range $50–$80. Footwear spans $20 (slides) to $160 (UA Velociti Distance running shoes). The brand is actively pushing prices upward under CEO Kevin Plank's turnaround — the Tech tee moved to $25 and new accessories like the $45 StealthForm hat target premium positioning.

Is Under Armour cheaper than Nike?

Generally yes, but the gap is narrowing. Under Armour's core training shorts ($40–$50) undercut Nike's ($45–$65), and UA's tech tees ($20–$25) sit below Nike's Dri-FIT range ($25–$45). On footwear, Under Armour averages around $100–$130 for performance shoes vs Nike's $110–$160. However, Under Armour's strategy under Kevin Plank is deliberately moving upmarket — cutting 25% of SKUs and raising prices on remaining products to close the gap with Nike.

What is Under Armour's pricing strategy under Kevin Plank?

Kevin Plank's turnaround centers on "selling more of less at higher full price." Key moves include cutting 25% of SKUs over 18 months, eliminating the "good" tier to focus on "better" and "best" products, reducing materials by 30%, raising the Tech t-shirt to $25, launching premium accessories ($45 StealthForm hat, $80–$100 backpacks), and deliberately reducing discounting both online and in wholesale. Revenue declined 9% in FY2025, but gross margin improved 180 basis points to 47.9% — the trade-off is intentional.

Does Under Armour run sales or discounts?

Under Armour runs two major Semi-Annual Sales (December/January and June/July) with up to 50% off select styles, each lasting roughly three weeks. Black Friday brings up to 50% off. Their outlet stores offer up to 60% off with stackable promo codes. Year-round, they offer a 20% student discount via UNiDAYS, 10–20% military/first responder/teacher discounts, and a 15% email signup code. The UA Rewards loyalty program provides early access and birthday double points. However, Plank's strategy is deliberately reducing promotional activity to protect full-price perception.

How does Under Armour compare to Lululemon on price?

Under Armour is significantly cheaper than Lululemon across most categories. UA training tops range $20–$55 vs Lululemon's $48–$78. UA sports bras sit at $25–$50 vs Lululemon's $48–$68. UA hoodies run $50–$80 vs Lululemon's $98–$128. A full Under Armour outfit costs roughly $100–$180 vs $200–$320 for Lululemon. The brands target different audiences — Under Armour focuses on team sports and training performance, while Lululemon targets yoga/lifestyle consumers willing to pay premium prices.

What is Under Armour's annual revenue?

Under Armour reported $5.164 billion in revenue for fiscal year 2025 (ended March 2025), down 9% year-over-year. This breaks down to $3.45 billion in apparel, $1.2 billion in footwear, and $411 million in accessories. North America accounted for $3.1 billion. Gross margin improved to 47.9%. For FY2026, the company guided for a further 4–5% revenue decline as the turnaround strategy prioritizes margins over volume. Q2 FY2026 revenue was $1.333 billion.

How is Under Armour repositioning its brand?

Under Armour is shifting from a mid-tier, value-adjacent positioning to premium performance. The strategy includes 25% SKU reduction (cutting "good" tier products), 30% materials reduction, investment in "better" and "best" product tiers, premium-priced new launches ($45 hats, $80–$100 backpacks), reduced discounting in both DTC and wholesale channels, and using owned retail stores as "proving grounds" for new concepts. The goal is to be perceived as a serious performance brand rather than a discount alternative to Nike.

How does Under Armour's pricing compare to Gymshark and Adidas?

Under Armour sits between Gymshark and Adidas on price for most categories. Training shorts: Gymshark $30–$48, Under Armour $40–$50, Adidas $35–$55. Sports bras: Gymshark $26–$44, Under Armour $25–$50, Adidas $30–$45. Hoodies: Gymshark $42–$50, Under Armour $50–$80, Adidas $55–$90. Gymshark undercuts UA on most items with their 100% DTC model, while Adidas prices slightly above UA on premium lines. Under Armour's wholesale-heavy model (60% of revenue) means more price competition at retail.