Under Armour is a sports clothing and accessories company. The company is a supplier of a wide range of sportswear and casual apparel mainly focussing on hi-tech sportswear for professional athletes. It has now broadened its horizons and Under Armour began offering footwear in 2006, it continues to expand its offerings. In Fall of 2010, Under Armour began offering its first line-up of basketball shoes.
The products of Under Armour Performance Apparel have become the top choice of athletes around the world to wear under their uniforms or during workouts. It all began with college football player Kevin Plank, who designed a T-shirt to draw sweat away from the body and into a lightweight microfiber fabric. Though moisture-wicking fabric was not a new concept, Plank's lingerie-feeling garments became a sensation when they kept football players at the University of Maryland, Georgia Tech, and Arizona State University dry and comfortable during practices and games. Under Armour has since conquered the sports world. Football, baseball, soccer, and hockey players, as well as NASCAR drivers and Olympians, wear its superior duds.
Under Armour, Inc. (Under Armour), incorporated in 1996, is engaged in the development, marketing and distribution of branded performance apparel, footwear and accessories for men, women and youth. The Company’s products are sold worldwide and are worn by athletes at all levels, from youth to professional, on playing fields around the globe, as well as consumers with active lifestyles. Its products are offered in over 23,000 retail stores worldwide. Most of its products are sold in North America. The Company’s trademarks include UNDER ARMOUR, HEATGEAR, COLDGEAR, ALLSEASONGEAR and the Under Armour UA Logo. The Company’s product offerings consist of apparel, footwear and accessories for men, women and youth.
Apparel
The Company’s apparel is offered in a range of styles and fits intended to improve comfort and mobility, regulate body temperature and improve performance regardless of weather conditions. The Company markets its apparel for consumers to choose HEATGEAR when it is hot, COLDGEAR when it is cold and ALLSEASONGEAR between the extremes. Within each gearline its apparel comes in three fit types: compression (tight fitting), fitted (athletic cut) and loose (relaxed). HEATGEAR is designed to be worn in warm to hot temperatures under equipment or as a single layer. It offers HEATGEAR in a variety of tops and bottoms in a range of colors and styles for wear in the gym or outside in warm weather. The Company’s COLDGEAR apparel provides both dryness and warmth in a single light layer, which can be worn beneath a jersey, uniform, protective gear or ski-vest. ALLSEASONGEAR is designed to be worn in changing temperatures and uses fabrics to keep the wearer cool and dry in warmer temperatures while preventing a chill in cooler temperatures.
Footwear
The Company’ footwear offerings include football, baseball, lacrosse, softball and soccer cleats, slides, performance training footwear, running footwear and basketball footwear. During the year ended December 31, 2010, it introduced basketball footwear, which had a limited introduction in the United States and Canada.
Accessories
The Company’s baseball batting, football, golf and running gloves include HEATGEAR and COLDGEAR technologies and are designed with fabrications to provide the same level of performance as its other products. During 2010, the Company’s licensees offered bags, socks, headwear, custom-molded mouth guards and eyewear.
The Company competes with Nike and Adidas.
In 2000 Under Armour outfitted the new XFL football league and gained considerable attention during the league's debut on national television. Though the XFL later folded, the exposure helped put Under Armour gear into 1,500 retail outlets throughout the United States. To keep up with demand, the company relocated to a new 14,000-square-foot site in October and by early the next year had become the official outfitter of MLB, the NHL, and USA Baseball. Even law enforcement and military personnel were wearing Under Armour.
Under Armour earned accolades from several sources in late 2001, including being named Apparel Supplier of the Year from Sporting Goods Business, and a Victor Award for the best New Product Launch from the Sports Authority, the nation's largest sporting goods chain. Plank, too, was lauded for his achievements, as one of Business Week's top "under thirty" business professionals. The company also revamped its web site, featuring three-dimensional views of some of its apparel, a more extensive product listing (including ski gear), and locations of both domestic and international dealers. Under Armour finished 2001 with sales of more than $25 million and 59 employees.
In 2002 Under Armour began testing its women's apparel line, hoping to duplicate its immense success with male athletes. The company had also become the official outfitter of Major League Soccer and the U.S. Ski Team. Under Armour's first television ad (the first print ad appeared in 1999) aired in August, during collegiate football's Kickoff Classic between Plank's alma mater, the University of Maryland, and the legendary Notre Dame. The ads ran on both ABC and ESPN for several weeks. By the end of the year, Under Armour was available in over 2,500 retail outlets and had sales of $55 million. The company had hired around 100 new employees during the year, had moved to larger headquarters on Baltimore's Inner Harbor, and added warehouse space of 65,000 square feet.
By 2003 sales for Under Armour were expected to breach $110 million and it was rumored the company had become a takeover target. New products that debuted during the year were underwear and golf apparel; Under Armour had also become a favorite among teenaged athletes and was considered "cool" for every day wear at middle and high schools. Even the collegiate and professional athletes who wore Under Armour in ads did it for the product, since the firm never paid endorsement fees. Under Armour got around the issue by not printing the athletes' names (figuring everybody knew anyway), and the "models" willingly endorsed the apparel because they truly believed in it.
Accepting No Substitutes: 2004 and Beyond
While Under Armour was a remarkable success story, perhaps there was one hiccup: Plank had been unable or unwilling to patent his performance wear. Imitators had come out in full force by 2004 and though Plank had not seemed unduly alarmed in 2001, commenting to Sports Illustrated that the knockoffs "validated" Under Armour, the imitators had begun to take their toll. Reebok International's "Play Dry" and Nike Inc.'s "Pro Compression" performance gear lines were putting chinks in Under Armour; then Reebok inked an exclusive deal with the NFL, while Nike secured the new MLB contract. While Under Armour still dominated the performance gear market, which analysts expected to top $200 million by 2005, both Reebok and Nike had considerable clout and a no-holds-barred approach to doing business. Would the Goliaths get the upper hand? Or would Kevin Plank's David still reign supreme in the performance gear industry? Only the world's athletes knew, for they held the key to Under Armour's future.
Principal Competitors: Nike Inc.; adidas-Salomon AG; Cotton Inc.; Reebok International Ltd.; Columbia Sportswear Company.
OVERALL
Beta: 1.52
Market Cap (Mil.): $3,519.13
Shares Outstanding (Mil.): 51.71
Annual Dividend: --
Yield (%): --
FINANCIALS
UA Industry Sector
P/E (TTM): 47.98 17.98 21.07
EPS (TTM): 44.63 -- --
ROI: 14.79 8.76 1.78
ROE: 15.53 9.97 2.74
Statistics:
Private Company
Founded:1996 as Under Armour Athletic Apparel
Employees:200
Sales:$110 million (2003 est.)
NAIC:315999 Other Apparel Accessories and Other Apparel Manufacturing
Key Dates:
1996: Kevin Plank develops his first microfiber T-shirt to keep athletes dry during workouts and games; he founds Under Armour Athletic Apparel.
1997: Twelve college football teams and ten National Football League (NFL) teams begin wearing Under Armour garments.
1998: Under Armour strikes a deal with Sports Robe, the wardrobe and uniform provider for the Warner Bros. film Any Given Sunday.
1999: The firm inks a deal with Eastbay catalogues and supplies apparel for another football-themed film, The Replacements.
2000: Under Armour begins national print advertising and provides apparel for the XFL football league.
2001: Supply agreements with Major League Baseball, the National Hockey League, and the NFL are signed.
2002: Under Armour gear becomes available in over 2,500 retail stores; company begins testing a women's apparel line.
2003: The Women's Performance Gear product line is officially launched in retail outlets and on the company web site.
Name Age Since Current Position
Kevin Plank 38 2010 Chairman of the Board, President, Chief Executive Officer
Brad Dickerson 46 2008 Chief Financial Officer
Wayne Marino 50 2008 Chief Operating Officer
J. Scott Plank 45 2009 Executive Vice President - Business Development
Kip Fulks 38 2011 Executive Vice President - Product
Mark Dowley 46 2011 Executive Vice President - Global Brand and President - International
Eugene McCarthy 54 2009 Senior Vice President - Footwear
Henry Stafford 36 2010 Senior Vice President - Apparel
John Rogers 48 2010 Vice President, General Manager - Global E-Commerce
Daniel Sawall 56 2010 Vice President - Retail
A. Krongard 74 2006 Lead Independent Director
Thomas Sippel 64 2001 Director
Byron Adams 56 2003 Independent Director
Douglas Coltharp 49 2004 Independent Director
William McDermott 49 2005 Independent Director
Harvey Sanders 61 2004 Independent Director
Anthony Deering 66 2008 Independent Director
Address:
1020 Hull Street
Baltimore, Maryland 21230-2080
U.S.A.
The products of Under Armour Performance Apparel have become the top choice of athletes around the world to wear under their uniforms or during workouts. It all began with college football player Kevin Plank, who designed a T-shirt to draw sweat away from the body and into a lightweight microfiber fabric. Though moisture-wicking fabric was not a new concept, Plank's lingerie-feeling garments became a sensation when they kept football players at the University of Maryland, Georgia Tech, and Arizona State University dry and comfortable during practices and games. Under Armour has since conquered the sports world. Football, baseball, soccer, and hockey players, as well as NASCAR drivers and Olympians, wear its superior duds.
Under Armour, Inc. (Under Armour), incorporated in 1996, is engaged in the development, marketing and distribution of branded performance apparel, footwear and accessories for men, women and youth. The Company’s products are sold worldwide and are worn by athletes at all levels, from youth to professional, on playing fields around the globe, as well as consumers with active lifestyles. Its products are offered in over 23,000 retail stores worldwide. Most of its products are sold in North America. The Company’s trademarks include UNDER ARMOUR, HEATGEAR, COLDGEAR, ALLSEASONGEAR and the Under Armour UA Logo. The Company’s product offerings consist of apparel, footwear and accessories for men, women and youth.
Apparel
The Company’s apparel is offered in a range of styles and fits intended to improve comfort and mobility, regulate body temperature and improve performance regardless of weather conditions. The Company markets its apparel for consumers to choose HEATGEAR when it is hot, COLDGEAR when it is cold and ALLSEASONGEAR between the extremes. Within each gearline its apparel comes in three fit types: compression (tight fitting), fitted (athletic cut) and loose (relaxed). HEATGEAR is designed to be worn in warm to hot temperatures under equipment or as a single layer. It offers HEATGEAR in a variety of tops and bottoms in a range of colors and styles for wear in the gym or outside in warm weather. The Company’s COLDGEAR apparel provides both dryness and warmth in a single light layer, which can be worn beneath a jersey, uniform, protective gear or ski-vest. ALLSEASONGEAR is designed to be worn in changing temperatures and uses fabrics to keep the wearer cool and dry in warmer temperatures while preventing a chill in cooler temperatures.
Footwear
The Company’ footwear offerings include football, baseball, lacrosse, softball and soccer cleats, slides, performance training footwear, running footwear and basketball footwear. During the year ended December 31, 2010, it introduced basketball footwear, which had a limited introduction in the United States and Canada.
Accessories
The Company’s baseball batting, football, golf and running gloves include HEATGEAR and COLDGEAR technologies and are designed with fabrications to provide the same level of performance as its other products. During 2010, the Company’s licensees offered bags, socks, headwear, custom-molded mouth guards and eyewear.
The Company competes with Nike and Adidas.
In 2000 Under Armour outfitted the new XFL football league and gained considerable attention during the league's debut on national television. Though the XFL later folded, the exposure helped put Under Armour gear into 1,500 retail outlets throughout the United States. To keep up with demand, the company relocated to a new 14,000-square-foot site in October and by early the next year had become the official outfitter of MLB, the NHL, and USA Baseball. Even law enforcement and military personnel were wearing Under Armour.
Under Armour earned accolades from several sources in late 2001, including being named Apparel Supplier of the Year from Sporting Goods Business, and a Victor Award for the best New Product Launch from the Sports Authority, the nation's largest sporting goods chain. Plank, too, was lauded for his achievements, as one of Business Week's top "under thirty" business professionals. The company also revamped its web site, featuring three-dimensional views of some of its apparel, a more extensive product listing (including ski gear), and locations of both domestic and international dealers. Under Armour finished 2001 with sales of more than $25 million and 59 employees.
In 2002 Under Armour began testing its women's apparel line, hoping to duplicate its immense success with male athletes. The company had also become the official outfitter of Major League Soccer and the U.S. Ski Team. Under Armour's first television ad (the first print ad appeared in 1999) aired in August, during collegiate football's Kickoff Classic between Plank's alma mater, the University of Maryland, and the legendary Notre Dame. The ads ran on both ABC and ESPN for several weeks. By the end of the year, Under Armour was available in over 2,500 retail outlets and had sales of $55 million. The company had hired around 100 new employees during the year, had moved to larger headquarters on Baltimore's Inner Harbor, and added warehouse space of 65,000 square feet.
By 2003 sales for Under Armour were expected to breach $110 million and it was rumored the company had become a takeover target. New products that debuted during the year were underwear and golf apparel; Under Armour had also become a favorite among teenaged athletes and was considered "cool" for every day wear at middle and high schools. Even the collegiate and professional athletes who wore Under Armour in ads did it for the product, since the firm never paid endorsement fees. Under Armour got around the issue by not printing the athletes' names (figuring everybody knew anyway), and the "models" willingly endorsed the apparel because they truly believed in it.
Accepting No Substitutes: 2004 and Beyond
While Under Armour was a remarkable success story, perhaps there was one hiccup: Plank had been unable or unwilling to patent his performance wear. Imitators had come out in full force by 2004 and though Plank had not seemed unduly alarmed in 2001, commenting to Sports Illustrated that the knockoffs "validated" Under Armour, the imitators had begun to take their toll. Reebok International's "Play Dry" and Nike Inc.'s "Pro Compression" performance gear lines were putting chinks in Under Armour; then Reebok inked an exclusive deal with the NFL, while Nike secured the new MLB contract. While Under Armour still dominated the performance gear market, which analysts expected to top $200 million by 2005, both Reebok and Nike had considerable clout and a no-holds-barred approach to doing business. Would the Goliaths get the upper hand? Or would Kevin Plank's David still reign supreme in the performance gear industry? Only the world's athletes knew, for they held the key to Under Armour's future.
Principal Competitors: Nike Inc.; adidas-Salomon AG; Cotton Inc.; Reebok International Ltd.; Columbia Sportswear Company.
OVERALL
Beta: 1.52
Market Cap (Mil.): $3,519.13
Shares Outstanding (Mil.): 51.71
Annual Dividend: --
Yield (%): --
FINANCIALS
UA Industry Sector
P/E (TTM): 47.98 17.98 21.07
EPS (TTM): 44.63 -- --
ROI: 14.79 8.76 1.78
ROE: 15.53 9.97 2.74
Statistics:
Private Company
Founded:1996 as Under Armour Athletic Apparel
Employees:200
Sales:$110 million (2003 est.)
NAIC:315999 Other Apparel Accessories and Other Apparel Manufacturing
Key Dates:
1996: Kevin Plank develops his first microfiber T-shirt to keep athletes dry during workouts and games; he founds Under Armour Athletic Apparel.
1997: Twelve college football teams and ten National Football League (NFL) teams begin wearing Under Armour garments.
1998: Under Armour strikes a deal with Sports Robe, the wardrobe and uniform provider for the Warner Bros. film Any Given Sunday.
1999: The firm inks a deal with Eastbay catalogues and supplies apparel for another football-themed film, The Replacements.
2000: Under Armour begins national print advertising and provides apparel for the XFL football league.
2001: Supply agreements with Major League Baseball, the National Hockey League, and the NFL are signed.
2002: Under Armour gear becomes available in over 2,500 retail stores; company begins testing a women's apparel line.
2003: The Women's Performance Gear product line is officially launched in retail outlets and on the company web site.
Name Age Since Current Position
Kevin Plank 38 2010 Chairman of the Board, President, Chief Executive Officer
Brad Dickerson 46 2008 Chief Financial Officer
Wayne Marino 50 2008 Chief Operating Officer
J. Scott Plank 45 2009 Executive Vice President - Business Development
Kip Fulks 38 2011 Executive Vice President - Product
Mark Dowley 46 2011 Executive Vice President - Global Brand and President - International
Eugene McCarthy 54 2009 Senior Vice President - Footwear
Henry Stafford 36 2010 Senior Vice President - Apparel
John Rogers 48 2010 Vice President, General Manager - Global E-Commerce
Daniel Sawall 56 2010 Vice President - Retail
A. Krongard 74 2006 Lead Independent Director
Thomas Sippel 64 2001 Director
Byron Adams 56 2003 Independent Director
Douglas Coltharp 49 2004 Independent Director
William McDermott 49 2005 Independent Director
Harvey Sanders 61 2004 Independent Director
Anthony Deering 66 2008 Independent Director
Address:
1020 Hull Street
Baltimore, Maryland 21230-2080
U.S.A.