UAA

Under Armour, Inc.

HALAL

Score: 78/100

stock

Is UAA Halal?

Designer and marketer of athletic apparel, footwear, and accessories — a permissible consumer-products business, with leverage as the primary financial-screen consideration.

What You Should Know

Under Armour, Inc. is a publicly-traded designer, developer, and marketer of branded performance apparel, footwear, and accessories sold through wholesale, direct-to-consumer, and digital channels worldwide. Designing and selling athletic apparel and footwear is a permissible activity at the activity level under standard Sharia methodology; Under Armour earns product revenue rather than interest. The financial screen is the primary consideration: Under Armour carries interest-bearing senior notes and a revolving credit facility, so the debt-to-market-cap ratio should be verified against the 33% Sharia threshold at the time of investment, particularly during periods when the share price is depressed and leverage runs higher relative to market cap. Subject to that verification, most major Sharia advisory boards classify Under Armour as permissible with purification of small interest-income components, though stricter boards may treat it as borderline when leverage is elevated.

⚠️ Concerns

•Debt-to-market-cap ratio should be verified against the 33% Sharia threshold at the time of investment — Under Armour carries interest-bearing senior notes and a revolving facility, and the ratio can rise when the share price is depressed; this is the primary Sharia-screening consideration and warrants particular attention
•Senior notes and revolving credit are conventional, interest-bearing instruments — investors who object to any such issuance should weigh this even where the debt ratio passes the 33% screen
•Interest income from cash balances should be confirmed against the 5% threshold and the corresponding portion of any returns purified
•As an athletic brand undergoing a turnaround, Under Armour's revenue and margins are sensitive to consumer demand, promotions, and inventory cycles — this is a business and valuation consideration rather than a Sharia screen concern