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Under Armour is the Next Nike

 Jul 01, 2008 04:15 PM UTC
Symbol Sentiment Start Return Closed
UA Positive 07/01/08 +1.91% --

6/27 - "Under Armour, founded in 1995, at first appealed to the serious athlete with its moisture-wicking synthetic fibers that help keep sweat and moisture from the skin and help regulate body temperature during strenuous exercise. Under Armour then discovered it was unwittingly creating a fashion statement. Like Nike, Under Armour is also crossing over to various demographic groups and weekend warriors as well."

"Nike will hit about $20 billion of revenues this year while Under Armour should approach $765 million. Nike has a market capitalization of $32.8 billion, which dwarfs Under Armour's $1.4 billion market cap. The opportunity for Under Armour is a faster, more sustainable growth rate of 20%+ for the next 3-5 years, as Nike should hold a steady 10% growth rate.

Under Armour has a global opportunity in front of it. Currently Under Armour sells in the United States, Canada, Australia and New Zealand. Nike has enjoyed a 31-year head start on Under Armour, but the world is ready for this emerging, strong second player."


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