Industry Situation And Company Plans

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Industry Situation and Company Plans
Under Armour, Inc. operates in the the industry of textile-apparel clothing. According to ValueLine.com, “The apparel industry is mostly for companies that design and sell clothing, footwear and accessories.” Under Armour works primarily with production of sportswear apparel, so their main focus in the industry is to create products that provide outmost comfort and improve overall performance of their athletic consumers. According to the 10-K, the industry is under a lot of pressure from competition and retailers to reduce the costs. As the report quotes, “These factors may cause them to reduce their prices to retailers and consumers, which could cause their profitability to decline if they are unable to offset price reductions with comparable reductions in their operating costs.” The overall economic outlook of the US Apparel industry, seems to be looking up. Due to the lower prices of cotton, the input costs have decreased, leaving more profit. However, the value of the dollar is growing stronger, as according to the 10-Q released on September, 2015, causing a negative impact on “gross margins within our international businesses.” Since operating in the industry of textile-apparel clothing Under Armour has a number of major competitors. This includes Nike Inc., Columbia Sportswear Company and Adidas just to list a few. Under Armour has shown itself to be a tough competitor. Its growth has been strong so far and has made significant
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