Two storm delays on Thursday stalled Round One at the U.S. Open. Chances are that a lot of the players were wearing rain-repellent clothes to keep them dry. One sports apparel company that increasingly provides such apparel is Under Armour.
Under Armour has built a name for itself in the golf business. It has six pros under contract, including Hunter Mahan and Scott Stallings.
Under Armour starts with a concept and then expands it over time. Take its “storm” brand as an example. “Storm” is a water-proof technology that started with $50 million dollars in revenue. As it expanded categories to outerwear, fleece and golf, “storm” revenue grew further, coming in at $100 million last year. It took the brand a step further in its third year and created apparel, footwear and accessories. The company is aiming for “storm” revenue, along with “charged cotton” to bring in $500 million by 2016.
Currently, Under Armour does 94 percent of its business in the United States and six percent internationally. Plans are to double that global portion to 12 percent by 2016.
Under Armour started as a $281 million dollar company in 2005 and has a goal of being a $4 billion dollar company by 2016.
Sam Poser, analyst at Sterne Agee, told “Big Data Download,” “I would say, if you remember Nike a long time ago, if you ask someone in 1977 if it would be a $25 billion brand in 30 years, everybody would say, “Yeah, whatever.” I don’t know if Under Armour is going to be that big, but I think Under Armour really is still in its infancy and they are very methodical about the way they run their business and we think that’s going to continue for some time and would make a good investment.”
Disclosure: Sterne Agee Makes a Market in UA
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- Consumer Discretionary