Under Armour is a relative newcomer to the performance apparel industry. The company entered the sports clothing business in 1996 by launching a high-tech, moisture wicking compression T-shirt. The shirt represented a major breakthrough. It propelled the company into dominance in the compression segment of an overcrowded sportswear market, thereby placing it well ahead of much larger rivals such as Nike. Indeed, Under Armour has been credited with helping to establish the compression segment of the market over the past decade.

The development of a moisture wicking compression T-shirt laid the groundwork for the creation of a company with a strong culture of innovation. Such a culture has enabled Under Armour to greatly expand its product range, and hence to silence many who had asserted that company would be a one-hit wonder. In fact, Under Armour has carved a highly profitable niche for itself in the fiercely competitive sporting goods market, by creating products which live up to their promise of enhancing comfort and performance.