Under Armour Case Analysis

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Under Armour At just twenty three years old Kevin Plank had made an observation during football practice one day. The former captain of the University of Maryland football team noticed that compression shorts worn by the team managed to stay dry during practice. From this material he created moisture wicking gear which Under Armour is known for (Under Armour Startup Story, 2014). Just like many startup companies, Under Armour’s original funding came from Kevin Plank’s college savings and personal credit card debt. Plank had saved about $20,000 that came from concert t-shirt sales. His credit card debt spread across five different cards was in excess of $40,000. One year after the company’s inception in 1997 Kevin Plank was broke (Under Armour Startup Story, 2014). Kevin Plank’s first big break came from a product sale to Georgia Tech for $17,000. Shortly thereafter two dozen NFL football teams followed in pursuit of his products. By the end of his second year, Kevin Plank had sold over $100,000 worth of product. Under Armour’s popularity took off after this and major teams and retailers began carrying their product. This surge in revenue turned Under Armour into a multi-million dollar business that has over 5,900 employees (Under Armour Startup Story, 2014). Important Milestones in Under Armour’s History • 1996: Kevin Plank invests $20,000 of his personal savings, and $40,000 in credit card debt to launch Under Armour. By the end of the year total sales are $17,000.

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