A Summary and Technical Analysis of the Under Armour, Inc. Essay

Under Armour, Nike and Adidas are the top three brands known worldwide. These three companies were able to gain a strong brand to make a name for themselves in the sports apparel market today. On the other hand, Under Armour has become one of the top leading distributing companies to offer athletic apparel, footwear amongst many other things. “In 2013, Under Armour had a 14.7 percent share of the U.S market, compared quite favorably with Nike’s 27 percent market share and Adidas’s 7.4 percent market share.” (C-50) However, the company’s path of success can come crashing down as you take a look

Competitors in the industry can wreak havoc on the bottom line for a company. With rivals, a price competition usually ensues, which benefits the customers but hurts the competing businesses that share a common strategy. In reviewing rival sellers, many competitors exist within the sports apparel and footwear industry, but most of them are unable to compete with the industry giants, Nike and Adidas. They are well seated in the industry and their sales reveal this ultimate strength, however, Under Armour is putting pressure on these mammoths. In 2015, global sales of sports clothing and footwear equated to $250 billion, of which Nike grabbed $30.6 billion, Adidas held in its grasp $18.8 billion and Under Armour had a much smaller piece of the pie, at $3.9 billion globally. In reviewing these numbers, it looks like Under Armour is really subpar to the industry giants, but this is not exactly the case. Under Armour in the past couple of

a. Under Armour’s approach towards innovation is very unique, they think and plan out their projects thoroughly in order to create a one of a kind product that could be appealing to their consumers. The company has been extremely progressive throughout the years in order to stay ahead of the other competitive companies in their targeted industry. By constantly updating and coming up with different product lines, such as compression shirts and cleats, Under Armour is able to compete with other top athletic wear company’s in their market. If

Under Armour’s business strategy towards market segmentation is broken down into three different basis; Age, Gender, Uses. The first major market segmentation is by age, different age groups demand different products and Under Armour has produced certain merchandise to appeal to each generation. The second is Gender, both male and female respectively make up roughly 50% of the market equally.To appeal to females UA produces apparel in brighter colo, as a fashion forward athletic wear. While for males they they cater toward masculine vibe of tight fitting and resistant to wear and tear. Lastly, UA segments by the range of uses for their products.

Under Armour has proven year over year that they are indeed a growth company. As their brand recognition and product availability increases so do their revenues. Under Armour achieved a growth in net revenue by over 18 percent, increased net income by 22 percent (suggesting financial discipline) all leading to their ability to sustain growth year over year (Under Armour 10K, 2009). This considerable increase in net revenue is attributed to an increase in apparel and the introduction of footwear in the first quarter of 2009 (2009). Although Under Armour has only been around 14 years they have only been traded publicly since 2005 (2009).

There is a high threat of substitutes in the athletic gear industry especially when competing with companies such as Nike and Adidas who have been around much longer, have the funds to continuously innovate their products and already hold a large market share. Under Armour has used “authenticity” as it’s guiding principle to grow the company and advertise their products, but if they wish to be the number one brand of athletic gear they will have to appeal to people who are also concerned with the look of the product and not just performance. According to research done by NPD Group, almost 80 percent of activewear is used for non-sports activities. “Under Armour will need to find a

In today’s athletic market world, being the number one is what many athletes strive for—that is what sets the standards for many sport clothing companies, to deliver products that allow athletes increase their performance while striving to take the number “one” spot. Under Armour works to deliver products that do that and more. Under Armour is currently one of the leading companies in the sports apparel industry whose mission is to “Make all athletes better through passion, design, and the relentless pursuit of innovation” (Under Armour, Inc). Baltimore, Maryland-based Under Armour, founded in 1996 by ex-football player Kevin Plank, who transformed the sports apparel industry by creating apparel that used synthetic materials as an alternative to natural fibers, such as cotton, or other materials, such as polyester. Plank’s mission was to develop a shirt using synthetic materials that handled perspiration most efficiently than was previously expected. Under Armour’s ability to target their products to a wide range of potential clients has enhanced their ability to continue to grow within the athletic marketplace. Under Armour, it is classified as a high-end fitness clothing supplier that appeals to a diverse income audience. This audience has been reached by the outstanding advertising strategies and that include men, women and children. Under Armour currently uses a mixture of pull marketing and different campaigns for its diverse product lines. The overall goal for Under

Under Armour, Inc. is ranked among the established sports Kit producers across the globe. It thus enjoys massive sales in several markets. Under Armour has its headquarters Baltimore, Maryland with Kevin Plank as the current Chief Executive Officer (CEO) and Robin Thurston as the Chief Finance Office. The company is committed to developing its brand continuously through advertisement. It is presently listed on the New York Stock Exchange (NYSE) market with a share price of $46.99. The company through its CEO believes that for the company to remain viable in the market, it has to ensure that that its products satisfy the taste of the consumers (Thompson, 2015). Clearly, this has bored fruits, basing the argument on the high consumer

The major weakness that has been identified is the lack of Under Armour’s lack of establishment and footprint of the brand around the world. Over 90% of the company's revenue comes from the North American market, which is a major source of concern. They are starting to become a larger brand in the golfing world which will help them gain market share in the western world but still doesn’t help with eastern Europe, Asia, and Africa. They can change this by sponsoring and equipping more soccer and cricket athletes and teams. These are some of the two largest sports in the world and if they are able to get their brand associated with these sports Under Armor will easily become a household

From the beginning, Under Armour has been a very innovative company. CEO, Kevin Plank innovated the way athletic apparel was made. They also still display passion through one of their core competencies, listed in Exhibit 3, which is to bring as much value as possible to their customers. Another one of Under Armour’s weaknesses according to Exhibit 2 is the lack of their international business. When you compare Under Armour to Nike it is easy to see how big of a difference there is between their geographical exposures. While the majority of Nike’s revenue comes from North America, they also have business segments all over Europe, China, Japan and some emerging markets as well. Adidas is modeled the same way. As mentioned briefly earlier, they have large segments of their revenue coming from regions around the world such as Europe, China, Asia and Latin America. When you compare this to the fact that roughly 94% of Under Armour’s net revenues over the past several years has come from North America, it is easy to see why they need to focus on expanding their international business segments in order to keep competing in this industry (Under Armour 10K). Under Armour’s competitors are working to further

The following paper will discuss Under Armour’s financial worthiness. An American sports manufacturer and distributor company of sportswear, athletic footwear, and sports accessories. The company’s Competitive advantages, Porter’s Five Forces theory, and analyzing its Industry are discussed. Next, the Sellers framework, Price to Earnings (P/E), and Price to Earnings Growth (PEG) along with Price to Book (P/B) and Price to Sales (P/S) are analyze and discussed as well. Furthermore, the paper discusses the Company’s Fixed Income Makeup (Bonds) analysis and stand point. The fundamental review and analysis of Under Armour including commentary about their stock value and fixed income status is also discussed. Comments on how Under Armour is performing and positioned relative to their competitors and the company’s market

In addition, Under Armours'(UA) stock is known for its fitness applications and apparels, which gives it three important reasons to choose this company. The first reason is that they treat their employees in a beneficial way. UA Employees are treated in a beneficial way because they are very selective on hiring people for their particular skills. There particular skills allow them to earn benefits from having a salary income, 401k plan and health options. The second reason is that the stock has long term investments which revenue is rising. The last reason is that the goals keep on changing.

Under Armour is in the Textile- Apparel Clothing industry, in the consumer goods sector. The market has been driven by economic recovery, new product offerings and a

1. We chose to study Under Armour because of their explosive growth over the last five years in a very competitive industry. From a marketing standpoint, it is quite apparent that the company is doing well and one could assume that because the firm appears to have had great success in aggressively expanding their market share, they are by extension creating value for investors. By studying the financial information, we aimed to confirm or deny whether Under Armour is indeed creating value.

Under Armour is currently one of the leading companies in the sports apparel industry whose mission is to “Make all athletes better through passion, science, and the relentless pursuit of innovation”.1 When Under Armour first broke into the sports apparel industry it was a disruptive pioneer that initially made the two giants, Nike and Adidas, a little weary. Under Armour revolutionized the sports apparel industry by creating apparel that used synthetic materials as an alternative to natural fibers, such as cotton, or other materials, such as polyester. This all-important switch to these materials resulted in a 2“shirt that provided compression and wicked perspiration off your skin rather than absorb it. A