About Under Armour, Inc.

Chainmail might be out of style but Under Armour makes performance clothes for doing battle on the sports field and in the gym. Under Armour is the official footwear supplier of the NFL and MLB and partners with the NBA and it outfits everyday athletes, as well. Products, made from its moisture-wicking and heat-dispersing fabrics, keep athletes dry and comfortable during workouts. The company also make technology that help customers track their fitness. Under Armour sells online, by catalog, and through retail (inlcuding Academy, Nordstrom's, Finish Line, and Cabela's) and outlet stores worldwide. Its locker room of athlete endorsers include top performers in football, basketball, soccer, and baseball.

Operations

Apparel designed for winter (COLDGEAR), summer (HEATGEAR), and year-round (ALLSEASONGEAR) wear accounts for over 65% of sales. Footwear runs in about 20% with accessories such as hats, bags, and gloves contributing under 10%.

Under Armour also has a small but growing Connected Fitness business, which comprises fitness-related apps such as MapMyFitness, MyFitnessPal, Endonondo, and UA Record. The free-to-use apps generate revenue from advertising. The segment accounts for about 2% of revenue.

Almost all of Under Armour's products are made by third party manufacturers in 18 countries. More than 60% of the company's products are made in China, Jordan, Vietnam, and Malaysia.

Geographic Reach

Headquartered in Baltimore, Maryland, Under Armour operates globally. It has European and Asian subsidiaries, and sources from suppliers worldwide. Besides North America, where it generates more than 75% of sales, Under Armour's products are sold primarily in France, Germany, and the UK. It sells in Japan and Korea, as well, through a third-party licensee.

The company’s distribution facilities are in Glen Burnie, Maryland; Mount Juliet, Tennessee; and Rialto, California.

Sales and Marketing

Under Armour generates more than 60% of its sales through its wholesale business. Its customers include the likes of Cabela's the Army and Air Force Exchange, and Dick's Sporting Goods.

The company's direct-to-consumer business is also growing rapidly -- Under Armour operates over 160 of its own factory outlet and specialty stores, primarily located in outlet centers in the US. Many of the company stores are going in Class A malls throughout the US. Some international locations are being targeted as well.

Financial Performance

Under Armour’s revenue has more than doubled in the past five years, growing at an annual average of more than 20% are more people clad themselves in Under Armour branded athletic wear and shod themselves in Under Armour shoes.

The company’s revenue growth slowed in 2017, reaching $4.9 billion, a 3% increase from 2016. The company reported higher apparel sales led by men's and women's training and golf; higher accessories unit sales led by men's training; and higher footwear unit sales led by running. License revenue rose about 17% from increased North American Distribution while Connected Fitness sales rose about 11% due to more subscribers to fitness apps and greater licensing revenue. Sales fell in North America fell 5% on lower demand, but rose in other areas, including a 60% jump in the Asia/Pacific region, boosted by direct to consumer sales.

Higher costs in 2017 wiped out the revenue gain and restructuring charges of about $124 million drove Under Armour to a net loss of about $48 million from a profit of about $198 million in 2016.

Under Armour’s cash increased to about $312 million in 2017 from about $250 million in 2016.

Strategy

After unbridled growth in the past five years, Under Armour’s sales slowed in 2017 because of its reliance on basketball footwear, struggling retail stores, and slowness in adapting to changing fashions. The company responded with restructurings in mid-2017 and early 2018 that reduced headcount, consolidated facilities, closed stores, and refocused resources. The company plans to focus on five core areas: men’s training, women’s training, running, baseball, and lifestyle.

Under Armour also plans to build on its growing international sales, which account more than a quarter of its revenue. In 2017 the company began selling products to wholesales customers in Russia. Building a global brand would help Under Armour compete with Nike and Adidas, whose logos are known around the world.

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Under Armour, Inc.

1020 Hull St Fl 3
Baltimore, MD 21230-5358
Phone: 1 (410) 454-6428
Fax: 1 (410) 439-1292

Stats

  • Employer Type: Public
  • Stock Symbol: UAA
  • Stock Exchange: NYSE
  • Chairman and CEO: Kevin A. Plank
  • President and COO: Patrik Frisk
  • Chairman and CEO: Kevin A. Plank
  • 2017 Employees: 15,800

Major Office Locations

  • Baltimore, MD

Other Locations

  • Little Rock, AR
  • Anthem, AZ
  • Chandler, AZ
  • Cabazon, CA
  • Camarillo, CA
  • Folsom, CA
  • Gilroy, CA
  • Livermore, CA
  • Napa, CA
  • Rialto, CA
  • San Clemente, CA
  • San Francisco, CA
  • Vacaville, CA
  • Clinton, CT
  • Rehoboth Beach, DE
  • Destin, FL
  • Ellenton, FL
  • Estero, FL
  • Orlando, FL
  • Saint Augustine, FL
  • Sunrise, FL
  • Locust Grove, GA
  • Woodstock, GA
  • Williamsburg, IA
  • Rosemont, IL
  • Edinburgh, IN
  • Fremont, IN
  • Kansas City, KS
  • Simpsonville, KY
  • Gonzales, LA
  • Boston, MA
  • Wrentham, MA
  • Annapolis, MD
  • Bethesda, MD
  • Hagerstown, MD
  • Ocean City, MD
  • Queenstown, MD
  • Birch Run, MI
  • Howell, MI
  • Albertville, MN
  • Bloomington, MN
  • Branson, MO
  • Chesterfield, MO
  • Osage Beach, MO
  • Asheville, NC
  • Smithfield, NC
  • Gretna, NE
  • North Conway, NH
  • Tilton, NH
  • Elizabeth, NJ
  • Jackson, NJ
  • Tinton Falls, NJ
  • Las Vegas, NV
  • Deer Park, NY
  • Lake George, NY
  • New York, NY
  • Niagara Falls, NY
  • Riverhead, NY
  • White Plains, NY
  • Aurora, OH
  • Jeffersonville, OH
  • Oklahoma City, OK
  • Woodburn, OR
  • Bethlehem, PA
  • Gettysburg, PA
  • Lancaster, PA
  • Pottstown, PA
  • Tannersville, PA
  • Bluffton, SC
  • Myrtle Beach, SC
  • North Charleston, SC
  • Nashville, TN
  • Allen, TX
  • Austin, TX
  • Grapevine, TX
  • Hillsboro, TX
  • Laredo, TX
  • Texas City, TX
  • Lehi, UT
  • Mc Lean, VA
  • Woodbridge, VA
  • Essex Junction, VT
  • Centralia, WA
  • North Bend, WA
  • Quil Ceda Village, WA
  • Johnson Creek, WI
  • Pleasant Prairie, WI
  • Cookstown, Canada
  • Kanata, Canada
  • Mirabel, Canada
  • Mississauga, Canada
  • Niagara On The Lake, Canada
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