Under Armour Proves It Can Be A Threat To Nike

Under Armour Proves It Can Be A Threat To Nike
Under Armour Cap Tyler Dziarmaga / Wikimedia Commons CC BY-SA 3.0

Under Armour, Inc. has been feeling optimistic lately. So much so that the company’s Chief Executive Officer Kevin Plank has said that Under Armour can actually be worth as much as $7.5 billion by year 2018. Moreover, this means the company hopes to experience a 25% compounded annual growth rate from its 2014 net revenue of $3.1 billion.

Headquartered in Baltimore, the company had decided to go ahead and increase its long-term net revenue growth rate target from 22% to 25%. The company has been experiencing “incredible” demand from customers, especially in core businesses like Apparel, North American and Global Wholesale. Meanwhile, the company also aims to further develop its newer business, including International, Footwear, Connected Fitness and Global Direct-to-Consumer.


During its second quarter for fiscal year 2015, Under Armour announced its net revenue increase of 29% to $784 million. In the same quarter, apparel had experienced a 23% increase in net revenues while footwear grew by 40%. At the same time, accessories also brought in 39% more in revenues while direct-to-consumer accounted for 32% of total net revenues, representing a growth rate of 33% year-over-year.

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After Under Armour’s stellar second quarter performance, the company decided to revise its outlook for the rest of the year. The expected net revenue for 2015 was set at around $3.84 billion, representing a 25% increase from the previous year. Meanwhile, Under Armour also expects to achieve an operating income between $405 million and $408 million for fiscal year 2015. This represents an increase of 14% to 15% from 2014.

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