Under Armor Expanding its Holdings and Offerings
Under Armor is working on expanding its holdings to drive profit.
This expansion of the brands flagship stores, increased investment in footwear offerings, expansion overseas, as well as continued investment in athlete-branded merchandise are all investments that the Baltimore, Maryland athletic apparel company is making in its branding.
“We are investing in expanded relationships with our key sporting goods and mall partners, as well as supporting our own direct-to-consumer capabilities including new Brand House openings across both the U.S. and our International markets,” said Kevin Plank, CEO and Chairman of Under Armor, “as we prepare in our twentieth year in the business of sports…we need to think bigger.”
The company also recently acquired fitness tracking app Endomondo and MyFitnessPal, an interactive food and weight-loss journal.
Fitness and weight loss apps have grown in popularity in recent years- Adidas and Weight Watchers are two large companies that have made recent acquisitions. Athletic gear brand, Nike, another Under Armor competitor, also has a library of its own fitness apps available to customers.
In fall of 2014, Under Armor passed Adidas to become the nation’s second largest sports apparel brand after Nike.
It shares are now trading at $96.34, up from around $65 per share at the same time last year, showing just how much the company has grown.
These are probable reasons why while Second Quarter net revenues increased 29% to $784 million, net income showed a decrease of 17% in the second quarter, down to $15 million from $18 in the same period last year.
This diluted earnings per share this quarter from $0.08 to $0.07 per share.