The Stock For Under Armour

Kevin Plank, the founder of Under Armour sports apparel line is a brilliant businessman. This former college football player started making work-out T-shirts from his grandmother’s basement; seventeen years later, the company is generating billions of dollars in revenue. Kevin Plank has created a brand that is more than just a fancy success story. The Under Armour’s mission in the sporting goods industry is to “make all athletes better through passion, design, and the relentless pursuit of innovation (Thompson, 2014, C-53).” This company is more than just a fancy success story. VIRO Analysis reported, Under Armour has been growing its revenue at a rate of +20% for 5 consecutive years, which is extremely impressive. The company’s financial

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).

The Dow Jones Industrial Average (INDEX:DJIA) stock price has been fluctuating and has moved up from 16,384on September 18 to 17,910 on November 6. The Dow Jones Industrial Average (INDEX:DJIA) is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq. The DJIA was invented by Charles Dow back in 1896. The DJIA typically has not only solid profits, but also create immense amounts of cash flow, much of which they turn around and return to investors. Through a combination of dividends and share buybacks, Dow companies demonstrate their commitment to

Under Armour is a very famous sportswear company in the world. It sold products in three categories: apparel, footwear, and accessories. It had a wide variety of innerwear and outerwear in the apparel segment, a broad line of footwear, and a line of accessories for both men and women. Kevin A. Plank, the founder and Chief Executive Officer of Under Armour (UA), was a walk-on special team’s player for University of Maryland football team. As an athlete, he knew what kind of sportswear material would be popular for athletes. Under Armour created a new category of sports apparel: “performance apparel” which focused on the athlete’s performance. In this segment, it had a 78% market in 2009. Because, it paid more attentions on quality, performance

Under Armour, a publicly traded company, was founded in 1996 by its CEO, Kevin Plank. Plank attended the University of Maryland where he played football. He was tired of having to change his cotton shirts over and over again when the football team had multiple practices a day, so he came up with a solution for the cotton shirts. This solution would re-design athletic apparel for the market. Plank designed a t-shirt that was, according to Under Armour (Under Armour), “…engineered with moisture-wicking performance fibers.” This design would help keep athletes cool, dry, and light while training and competing in the heat. Plank started selling his design from the trunk of his car as he drove up and down the East Coast, and his sales sky-rocketed

Under Armour’s (UA) current CEO Kevin Kant founded the company in 1996, which has witnessed the company grow in recent years to become a key player in the sporting gear and apparel industry. UA focuses its products and marketing efforts towards the youth, men, and women. The amount of resources that are allocated to each group of customers differs in that initially, UA primary source of revenue was from men even if youth and women products were also produced and sold. The specificity of UA’s products and their sporting activities selectivity can be attributed to UA’s limited global market share in the sporting gear and apparel industry. The company’s mission statement is inspiring, but in order to gain competitive advantages against larger

The analysis will be conducted by using Under Armour’s 10K Annual Report’s along with graphs, charts, and Table’s as well as any other visual material to interpret these financial negative

Moreover, Under Armour investment goals made by the company are usually seen as short or long term. The short term goals are seen to be have a

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

SWOT Analysis: Under Armour History: • Founded in 1996 by former University of Maryland football player Kevin Plank. • Originally started with a simple plan to make a t-shirt that provided compression and wicked perspiration off your skin instead of absorbing it. • “Under Armour’s mission is to make all athletes better through passion, design and the relentless pursuit of innovation.” • In 1999, Plank and his team signed on to supply product for the film Any Given Sunday. In the film, the football team wears Under Armour apparel and accessories in key scenes.

Under Armour has a 4.71% market share in the global sportswear segment , and it is facing great pressure from big players such as Nike and Adidas, as well as fast growing companies like Lululemon and Fila. The intense environment makes it difficult for incumbents to offer very distinct products and thus often results in price

Under Armour Inc. is the fourth biggest manufacturer in the consumer apparel industry. Under Armour Inc. stock price has dropped nearly 30 percent in the past year. They represent more than 4.45 percent of the total market share. Despite the decline in stock price, Under Armour Inc. continues to grow. This fluctuation in stock price has caused us to take a deeper look at their financial statements. In doing so, we decided to do a financial ratio analysis. To have a better understanding of the industry and how Under Armour Inc. compares to the rest of the industry we will compare them to Columbia Sportwear Company.

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 turnover that the company enjoys. Moreover, the company has various opportunities to expand in the American markets. All the employees in the organization have to undergo a form of training on the operations of the company. The company is appreciated by several consumers across the globe as a result of the high-quality products it produces and the unique marketing strategies. It is founded on the slogan “protect this house.”

Under Armour, Inc. is the frontier for innovation of athletic performance products that enable consumers, men women and youth, to maximize their potential throughout the duration of a game, practice, or workout. The company was founded by Kevin A. Plank in 1996 and is headquartered in Baltimore, Maryland. Under Armour develops and sells products in three primary categories, “In 2015, sales of apparel, footwear and accessories represented 71%, 17% and 9% of net revenues, respectively” (Under, 1). The remaining 3% of net revenues is generated through licensing arrangements. Sales are primarily driven by wholesale channels, but Under Armour “also generate net revenue from the sale of our products through our direct to consumer sales channel…and

Like any other company Under Armour needs to keep track of its finance’s. This is an Internal environmental factor for the company. Financially, Under Armour is consistently growing. Consumers propelled revenue growth from $5.3 million in 2000 to $263.4 million in 2005, which is an annual growth rate of 127% (Thompson, 2013,pg.250). Overall, from 2008 to 2012 they’ve seen an increase each year in cash and cash equivalents, working capital, total assets and total stockholders’ equity, as well as net