Under Armour aims to double sales
Kevin Plank, CEO of US sportswear firm Under Armour has said the company’s goal is to double its sales over the next three years.
The ambitious projection would put Under Armour’s total revenue at $2 billion by 2013, three years after the company hit $1 billion in sales for the first time in 2010. That mark took 15 years for the Baltimore sportswear maker to reach.
Mr Plank told Wall Street analysts that Under Armour is going to rely more on sales to young athletes and women. The company is rolling out a new line of Armour sports bras and line of “Perfect Pant” trousers for women, for yoga and working out.
The company is expanding its focus to include women in their late 20s and early 30s. Overall, Under Armour’s apparel sales have been growing about 30% a year, officials said. The company also plans to boost sales of its products among teens and young adults, especially basketball, soccer and lacrosse players.
Footwear will also play a big part in Under Armour’s expansion plans. After spending the past year retooling its fledgling trainer line, Under Armour plans to roll out two new shoes over the next year. They include a “Charge RC” men’s and women’s running and training shoe that will launch in October. The shoe, which features a separate heel piece, will sell for $120. The “Micro G Strut”, a training shoe for women and men with an adjustable heel strap, will sell for $87. It will launch in spring 2012.
Under Armour has revamped and expanded its athletic shoe line Under Gene McCarthy, a footwear executive who had worked at Nike and Reebok before joining Under Armour almost two years ago. The company has been increasing its hiring in its footwear department, more than doubling from 54 employees in 2008 to 119 today.
Under Armour also showed off several new apparel products it plans to launch. These include a Storm Fleece line of hooded and zip-up sweatshirts made of material that repels water and a Cold Black line of golf and sports shirts which reflect heat and UV rays. The Cold Black line will enable the company to expand sales in warm weather markets on the West Coast, executives said.
Under Armour also plans to expand its sales of men’s underwear. By spring 2012, it expects to have its underwear in 600 department stores nationwide, including Nordstrom, Macy’s and Bloomingdales.
Mr Plank told investors the company still feels it hasn’t launched its “defining product.”
“We’re focused with laser precision on making that happen very soon,” he said.
