Under Armour is expanding both its product line and its bottom line.
In its third quarter earnings report, Under Armour said it expects 2006 net earnings to be $410 million, a 46 percent increase over 2005?s $281 million. By creating a fabric that keeps athletes cool and dry, the Baltimore-based corporation started by a former University of Maryland football player has taken the market by storm.
“I?m expecting about a 50 percent growth this year,” said Brady Lemos, a stock analyst at Morningstar. “They are doing very well in all segments, and are a relatively small company now with room to grow.”
Known first as a special teams ace for the Terrapins, Kevin Plank launched Under Armour in 1996. By expanding the product line from the basic shirt concept, Plank tapped other markets with the addition of football jerseys and pants, gloves, head bands, underwear and cleats. From the marketing campaigns of “We Must Protect this House” to “Click, Clack,” Under Armour?s biggest hit might have been agreeing to a deal with the University of Maryland prior to the 2004 season to become the school?s official football apparel supplier.
“The integrity of any organization starts at the top,” said Deborah Yow, athletic director for the University of Maryland. “Under Armour?s founder and chief executive officer, Kevin Plank, provides a special type of dynamic creativity and trustworthiness that is rare. These same traits are seen in his senior-level staff as well, so we are proud to be associated with Under Armour.”
In addition to the Terps, Plank?s Under Armour outfits the Texas Tech and the University of Auburn football teams.
But the company?s growth is not limited to the collegiate field of play. Under Armour now is one of the official footwear providers to the National Football League. And, Plank wasn?t shy about trying the “other” football market ? aka soccer ? signing a deal in December to outfit the Reading Football Club of the English Premier League.
“They have a substantial amount of brand momentum,” Lemos said. “Its a very hot brand right now, and I see no reason why [slowing] would start right now.”
