Direct Sourcing for Under Armour

Under Armour Liquidation: Performance Brand in Transition

Under Armour liquidation represents America’s fourth-largest athletic brand navigating market challenges and strategic repositioning. With $5.7 billion in annual revenue (down from $5.2 billion peak) and a product mix that’s 65% apparel, 30% footwear, and 5% accessories, Under Armour processes approximately $750 million-1.1 billion in returned and clearance merchandise annually. The liquidation opportunity centers on Under Armour’s performance-first positioning—the brand built reputation on technical athletic apparel (compression gear, moisture-wicking fabrics, temperature regulation) creating strong value retention at 45-60% of retail for performance products while lifestyle attempts failed, creating liquidation with extreme variation where technical athletic maintains respectable resale values but lifestyle/casual items languish at 30-45% of retail. The challenge lies in Under Armour’s declining brand momentum (losing market share to Nike, Adidas, and emerging competitors), retail distribution contraction (major retailers reducing Under Armour floor space), and inventory management issues creating periodic liquidation surges where market flooding destroys pricing power temporarily.

Under Armour’s Reverse Logistics and Brand Challenges

Under Armour operates through retail distribution concentrated in: Sporting goods chains (Dick’s Sporting Goods as major partner, Finish Line, Academy Sports), Department stores (Macy’s, Kohl’s with declining space allocation), Under Armour branded stores and outlets (company-owned retail, outlet locations), and Limited off-price presence (TJ Maxx, Marshalls carrying Under Armour but less than Nike/Adidas). This distribution creates liquidation flowing primarily through: Dick’s Sporting Goods returns (Under Armour represents 15-30% of athletic inventory at Dick’s, highest retailer concentration), Under Armour outlet store clearance (hand-selection opportunities), Department store athletic clearance (8-15% Under Armour in mixed athletic), and Periodic inventory dumps (Under Armour has excess inventory issues, periodically flooding liquidation markets with bulk clearance destroying short-term pricing).

Under Armour’s return dynamics reflect performance focus and lifestyle struggles. Performance athletic returns (compression gear, HeatGear/ColdGear seasonal apparel, technical training wear) show moderate return rates 12-18% driven by sizing issues (compression fit is highly personal), seasonal timing (bought winter gear, winter ended), and performance expectations (technical features didn’t meet needs). These performance returns maintain 45-60% retail value in liquidation because core athletic buyers appreciate Under Armour’s technical quality. Lifestyle returns (sneakers attempting to compete with Nike/Adidas, casual apparel, athleisure pieces) show high return rates 25-35% driven by style disappointment, better alternatives from competitors, and Under Armour’s weak lifestyle positioning. These lifestyle returns maintain only 30-45% retail value because Under Armour lacks the cultural cachet and design credibility to compete with Nike/Adidas in non-athletic contexts.

Under Armour Product Categories and Resale Values

Under Armour apparel shows strongest and most consistent resale values across the brand. Compression gear (HeatGear base layers, compression shorts, compression shirts) maintains 50-65% of retail value even when used due to Under Armour’s market-leading reputation in this category—serious athletes and fitness enthusiasts recognize Under Armour compression quality as comparable or superior to Nike/Adidas. Technical training apparel (moisture-wicking tees, performance hoodies, training pants featuring UA Tech, HeatGear, ColdGear technologies) maintains 45-60% of retail to buyers seeking genuine performance benefits rather than fashion branding. Casual/lifestyle apparel maintains only 35-50% of retail due to weak brand positioning outside athletic contexts—Under Armour graphic tees and hoodies face brutal competition from Nike, Adidas, Champion, and fast-fashion brands offering comparable styling at similar or better prices.

Under Armour footwear struggles significantly in resale markets. Running and training shoes maintain 35-50% of retail even when new/deadstock—buyers perceive Under Armour footwear as inferior to Nike, Adidas, New Balance, Asics, Brooks, creating pricing pressure from all directions. Basketball shoes maintain 30-45% of retail despite Stephen Curry partnership (NBA’s best shooter but limited youth appeal compared to LeBron, Jordan brand). Cleats and sports-specific footwear maintain 40-55% of retail in categories where Under Armour has credibility (football cleats, baseball cleats) but face Adidas/Nike dominance in soccer. Under Armour accessories (bags, hats, socks) maintain 40-55% of retail, performing adequately when emphasizing performance features but struggling when competing on pure brand appeal.

Under Armour Liquidation Sourcing Channels

Under Armour liquidation sources primarily through Dick’s Sporting Goods relationship and Under Armour direct channels. Primary access via Dick’s Sporting Goods liquidation containing significant Under Armour concentration: Athletic apparel pallets from Dick’s show 20-35% Under Armour (higher than Nike or Adidas at individual retailer level due to Dick’s strategic partnership), Athletic footwear pallets show 15-25% Under Armour, Mixed sporting goods contain 18-28% Under Armour across categories. These channels accessed through Liquidation.com, B-Stock, Via Trading provide verified authentic Under Armour at 16-25% of retail for mixed pallets—notably cheaper than Nike (22-32%) and Adidas (20-28%) reflecting Under Armour’s lower resale value retention and weaker brand positioning.

Secondary access through Under Armour outlet stores offers best hand-selection opportunities. Under Armour Outlets carry: Current season performance apparel at 30-50% off retail (compression, technical training gear), Prior season at 50-70% off retail, Hash-marked clearance at 70-85% off retail (final clearance, often seasonal items or discontinued styles). Focus on Under Armour’s strength categories—compression gear, HeatGear/ColdGear seasonal performance apparel, technical training wear—avoiding footwear and lifestyle items unless exceptional pricing (sub-15% of retail) justifies bulk approaches. Under Armour compression shirt retailing at $34.99, outlet-priced at $19.99, hash clearance at $9.99, resells at $22-32 through eBay or Mercari targeting serious athletes for 120-220% ROI with zero brand confusion and focus on performance buyer segment.

Tertiary access through department store athletic liquidation includes Under Armour in declining concentrations: Macy’s athletic departments (10-18% Under Armour in athletic pallets, down from 20-30% historically as Macy’s reduces Under Armour allocation), Kohl’s active/athletic departments (8-15% Under Armour, similarly declining), Regional sporting goods chains (15-25% Under Armour when liquidating athletic inventory). These sources provide verified authenticity at 15-22% of retail but require accepting Under Armour as minority component in mixed brand pallets.

Multi-Channel Resale Strategy for Under Armour

Under Armour liquidation resale requires performance-focused, athlete-targeted channel strategies. Primary channel is eBay for Under Armour compression gear and technical athletic apparel. eBay’s demographic includes serious athletes and fitness enthusiasts who appreciate Under Armour’s performance credentials over fashion branding. List compression gear emphasizing technical features (HeatGear for hot weather, ColdGear for cold, compression benefits for muscle support and recovery) at 50-65% of retail targeting athletes training seriously rather than casual gym-goers. Technical training apparel list with feature callouts (moisture-wicking, anti-odor, 4-way stretch) at 45-60% of retail. Avoid fashion/lifestyle positioning—emphasize performance benefits and technical specifications that Under Armour legitimately delivers.

Secondary channel is Mercari for Under Armour apparel targeting budget-conscious fitness buyers. Mercari’s demographic includes younger buyers seeking athletic wear at accessible prices, creating market for Under Armour’s performance positioning at value pricing versus Nike/Adidas premiums. List Under Armour technical apparel at 45-60% of retail, compression gear at 50-65% of retail, casual athletic at 40-55% of retail. Use performance-focused language: ‘Under Armour HeatGear Compression Shirt, Moisture-Wicking, Great for Running/Training’ at $18 positions on functionality rather than brand prestige, capturing buyers who want performance without paying Nike/Adidas premiums.

Tertiary channel is Poshmark for women’s Under Armour athletic apparel. Poshmark’s strength in athletic/athleisure wear attracts fitness-focused women seeking quality workout clothes. List women’s Under Armour compression gear, sports bras, training tights, and technical tops at 50-65% of retail emphasizing fit, performance features, and condition. Women’s Under Armour often outperforms men’s in resale (less Nike/Adidas brand loyalty among women fitness buyers, more focus on fit and function over brand prestige), creating pricing power closer to Nike/Adidas equivalents particularly in compression and sports bra categories where Under Armour has strong technical reputation.

Specialty channel for Under Armour involves team sales and youth sports partnerships. Under Armour has significant youth sports presence (team uniforms, league partnerships), creating demand from parents and coaches seeking quality athletic gear for teams at value pricing. Bulk sales of Under Armour performance apparel to youth soccer, football, baseball, basketball teams at 35-50% of retail provide volume-based revenue—a mixed Under Armour lot with $1,500 retail value (compression gear, training apparel, team-appropriate items) purchased in liquidation at $300-425 sells to youth sports organizations at $600-850 for 40-100% ROI through single B2B transaction.

Logistics, Performance Focus, and Under Armour-Specific Strategies

Under Armour liquidation logistics standard for athletic apparel: $200-350 LTL for 400-800 pound pallets. Processing time moderate: 12-18 minutes per item average given focus on apparel over footwear (apparel processes faster than shoes). For 80-piece Under Armour apparel pallet, budget 18-24 hours total: Sort by category (compression separate from technical training separate from casual), inspect for condition (Under Armour quality control is adequate but not exceptional, defect rates 18-25%), photograph emphasizing technical features and performance positioning, research pricing on sold listings focusing on athlete/performance buyer segments, list with feature-focused descriptions rather than fashion/lifestyle language. Most efficient approach processes compression and technical items individually (these justify listing labor at $22-35 resale values) while bulk-lotting casual/lifestyle items that won’t support individual margins given 35-50% retail value retention.

Under Armour-specific expertise requirements: Knowledge of Under Armour’s technical features and technologies (HeatGear, ColdGear, UA Tech, Charged Cotton—what they mean, how they perform, which buyers care); Understanding of Under Armour’s market positioning as performance-first brand (strongest in compression, technical athletic wear, weakest in lifestyle/fashion); Recognition of Under Armour’s category strengths and weaknesses (excellent compression gear, strong technical training apparel, weak footwear, struggling lifestyle); Awareness of Under Armour’s inventory challenges and liquidation cycles (brand periodically dumps excess inventory, flooding markets and temporarily destroying pricing—avoid purchasing during these surges, wait for normalization); Realistic pricing expectations acknowledging Under Armour commands 75-85% of Nike pricing, 80-90% of Adidas pricing in performance categories where it competes, but only 50-65% in lifestyle categories where brand positioning is weak.

The strategic framework for Under Armour liquidation success requires embracing performance focus and avoiding lifestyle categories. Strategy One: Specialize in Under Armour compression gear and technical performance apparel, purchasing through Dick’s Sporting Goods liquidation or Under Armour outlet clearance at 15-22% of retail, focusing exclusively on HeatGear, ColdGear, and compression products for individual resale at 50-65% of retail through eBay Under Armour serious athletes and fitness enthusiasts. Avoid footwear, casual apparel, and lifestyle items that won’t support adequate margins given Under Armour’s weak positioning in these categories. Target 100-180% ROI on selective performance focus. Strategy Two: Operate women’s Under Armour niche focusing on sports bras, compression leggings, and women’s technical training wear where Under Armour competes more effectively against Nike/Adidas due to women’s athletic wear buyers prioritizing fit and function over brand prestige. Source women’s Under Armour through department store and Dick’s liquidation, resell through Poshmark at 50-65% of retail to fitness-focused women. Women’s Under Armour technical gear often matches or exceeds Adidas pricing in resale markets, creating better margins than men’s equivalent items. Strategy Three: Develop youth sports team sales channel purchasing Under Armour performance apparel in bulk at 15-20% of retail, reselling to youth sports organizations, schools, and recreation departments at 40-50% of retail for team uniforms and training gear. Under Armour’s youth sports presence and technical quality at value pricing (versus Nike/Adidas) creates sustainable B2B demand from budget-conscious youth sports programs. Most successful Under Armour resellers focus ruthlessly on Under Armour’s genuine strengths—compression gear, technical performance apparel, women’s athletic wear, youth sports applications—while avoiding footwear and lifestyle categories where the brand struggles against Nike, Adidas, and emerging competitors. Accept that Under Armour occupies a performance-niche position rather than broad lifestyle brand status, target buyers who value technical functionality over fashion branding, and maintain realistic pricing 10-25% below Nike/Adidas equivalents in competitive categories while claiming pricing parity in Under Armour’s strength categories (compression, women’s technical wear) where brand delivers comparable or superior value.