Under Armour Hits Master Stroke with Jordan Spieth Win - Analyst Blog
Jordan Spieth won the 79th Masters Golf Tournament at Augusta National Golf Club golf tournament on Sunday Apr 12. But it was the athletic apparel maker Under Armour, Inc. UA which stole the show. The logo of the company, which signed him at the age of 19, on his hat, shirt, belt, pants and shoes were enough to catch eye. The 4-year endorsement deal, which was signed in 2013, was recently extended through 2025.
We believe that with Jordan Spieth taking the green jacket, Under Armour too will have a long way to go. The company, which competes with giants such as Adidas and Nike, Inc. NKE in the sports apparel business, is keen on expanding its footprint and enhancing brand recognition to go an extra mile. A deal with rising athletes naturally provides greater scope to showcase their brands. Under Armour also has a sponsorship deal with NBA star Stephen Curry for signature basketball shoe “Curry One.”
Under Armour is also entering into the business of fitness gadgets and other tracking platforms to attract customers. Its acquisition of MapMyFitness in Dec 2013 for $150 million was a step forward in the same direction. MapMyFitness, which has flagship brands such as MapMyRun, MapMyRide and MapMyWalk, offers members to track over 600 kinds of workouts on their mobile devices.
The recent acquisitions of Endomondo and MyFitnessPal for $85 million and $475 million, respectively, are also in line with the company’s strategy of expanding its reach in the fitness space.
It is apparent from the above that Under Armour, through strategic business endeavors and innovative product lines, is seeking to gradually expand its market share in the lucrative sports industry in both domestic and international markets.
Under Armour currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the retail industry include Columbia Sportswear Co. COLM and Hanesbrands Inc. HBI both carrying a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
UNDER ARMOUR-A (UA): Free Stock Analysis Report
NIKE INC-B (NKE): Free Stock Analysis Report
COLUMBIA SPORTS (COLM): Free Stock Analysis Report
HANESBRANDS INC (HBI): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
