...Table of Contents Brief History………………………………………………………………………P.3-4 Current Status……………………………………………………………………..P.5 SWOT Analysis……………………………………………………………………P.6-7 Direct Competitors…………………………………………………………………P.7 Genral Trends………………………………………………………………………P.8 External Influences………………………………………………………………….P.8-9 Global Issues………………………………………………………………………..P.9 Problems…………………………………………………………………………….P.10 Income Statements………………………………………………………………….P.11 Ration Analysis……………………………………………………………………..P.12-16 Work Cited…………………………………………………………………………P.17 Conclusion………………………………………………………………………….P.18 Worked Cited………………………………………………………………………P.19 Brief History One of the biggest name in American sports clothing and accessories is Under Armour. This company focuses on providing hi-tech sportswear for professional athletes, but they also have a large range of sportswear and casual apparel for others. Kevin Plank founder and CEO of Under Armour, he first carne up with the ideas for Under Armour in 1995. Plank was the special teams' captain on the University of Maryland football team. He noticed after every game him and his teammate cotton T-shirt were heavily soaked in sweat. He told himself "there has to be something better". He also noticed that his synthetic fabric short in wore in practice stay dry. After graduation from Maryland, Plank set out to corne with a product that sports have never seen before. On a trip to New York City famous garment district for fabric...
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...UNDER ARMOUR: A Financial Analysis Under Armour Overview Under Armour Inc. (UA) was founded in 1996 by Kevin Planks whose company mission was to provide a premium t-shirt more suitable for athletic activity. By attacking a niche market, UA was able to establish a strong foothold in the t-shirt and base layer-clothing business and has grown rapidly as a result. To diversify its portfolio and reach a larger target market, UA has expanded its product lines in recent years to include footwear and athletic accessories. Headquartered in Baltimore, Maryland, UA acts primarily as a wholesaler providing clothing products to other retailers throughout the world, such as Dicks Sporting Goods and The Sports Authority. With 75% of their sales coming from large scale distributors like those mention above, UA also operate their own Direct to Consumer business through their website, factory stores and specialty stores. While a majority of Under Armour’s business is generated in the United States, they also have international operations that include a separate headquarters located in Amsterdam and through a license agreement, in Japan. Under Armour outsources the majority of its product creation to manufacturers worldwide who are unaffiliated with the brand. Products distributed are manufactured by 22 different manufacturers in 17 different countries spread across Asia and Central and South America (UA 10k pg.7). UA also operates a Special Make-up Shop in one of their two distribution...
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...nder Armour Inc. based in Baltimore, Maryland, is one of the leading designers, marketers, and distributors of authentic athletic footwear, apparel, and accessories for a wide variety of sports and fitness activities. The Company engages in the design, development, marketing, and distribution of a range of apparels and accessories utilizing various synthetic microfiber fabrications in the United States and internationally. It offers a wide variety of products including sporting goods and lifestyle products. The Company provides its products for use by professional football, baseball, hockey, and soccer players, as well as other athletes primarily under the brand names of HeatGear, ColdGear, Under Armour, LooseGear, and AllSeasonGear. It also offers T-shirts, sweatshirts, socks, performance bags, baseball batting gloves, football gloves and cleats, and other related products for use in outdoor activities. In addition, the Company also provides accessories, such as baseball caps, knit caps, visors, headwear, and wristbands. Under Armour Inc. offers its products through retail stores, national and regional chains of retailers, smaller, independent, and specialty retailers, as well as through the website and catalogs.Key investment considerations as identified by the firms are as follows:Key Positive ArgumentsKey Negative ArgumentsFootwear Expansion: Focus on footwear expansion will allow the Company to gain additional market share.Efficient Management Team: A solid management team...
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...Introduction Under Armour (UA) is based in Baltimore, Maryland and is a developer and retailer of performance apparel, footwear and accessories for athletic use. Under Armour was started in 1996 by former University of Maryland football player Kevin Plank with the belief that athletes needed a good alternative to the basic cotton t-shirt for their workouts. After working with multiple fabric companies to develop an advanced moisture wicking fabric, Mr. Plank began selling tight-fitting base layer tops and bottoms from his corporate headquarters in his grandmother’s basement. Twelve years later, Under Armour has grown into an internationally recognized leader in high performance athletic clothing. Net incomes have grown exponentially since the company’s inception.  Under Armour has fed this growth with strategic partnerships with the NFL, college football teams, and numerous star athletes. The company has moved beyond its initial base layer clothing meant to be worn “under armour.” Under Armour now produces clothing, footwear, and accessories for baseball, golf, cross-training, military/tactical use, hunting, and assorted other athletic or outdoor disciplines. Dedicated displays at large retailers such as Dick’s Sporting Goods and Sports Authority and Under Armour retail outlets are helping to grow the brand and its dedicated customer base. Under Armour revolutionized the world of athletic wear and created products that are...
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...Group Project Company analysis as of 12/31/2013 and 12/31/2012 in USD 2012 2013 Profitability Ratios: Gross Margin 48.74 39.12 Operating Margin 11.37 10.21 EBITDA Margin % 13.39 12.21 Calculated Tax Rate % 37.80 30.21 Profit Margin (TTM) 6.96 5.67 Valuation Ratios: Price/Earnings (TTM) 113.38 115.21 Price/Book (TTM) 17.54 18.19 Price/Cash Flow (TTM) 153.19 158.30 Asset Management: Total Asset Turnover 1.71 2.24 Receivables Turnover 12.10 13.21 Inventory Turnover 3.03 4.03 Property Plant & Equip Turnover 11.52 12.71 Cash & Equivalents Turnover 6.77 8.12 Debt Management: Interest Coverage 90.38 90.40 Long Term Debt/Equity 0.05 0.06 Long Term Debt as % of Invested Capital 3.98 3.99 Total Debt/Equity 0.15 0.16 Accounts Payable Turnover 15.09 15.10 Accrued Expenses Turnover 21.32 21.34 Liquidity Indicators: Quick Ratio 1.29 1.34 Current Ratio 2.65 2.70 Net Current Assets as % of Total Assets 44.51 44.55 Free Cash Flow per Share 0.15 0.17 Revenue to Assets 1.48 1.50 Under Armour Inc. Introduction Under Armour, Inc. is an American sports clothing and accessories company. The company is a supplier of the sportswear and casual apparel. Under Armour began to offer footwear in 2006. Under Armour’s global headquarters is located in...
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...Business Analysis of the Under Armour Brand Business Analysis FOR Dr. Kimberly Carter Business 508: Contemporary Business October 25, 2015 Strayer University . Abstract This paper aims to analyze three factors impacting the overall performance of Under Armour. Kevin Plank, a former University of Maryland football player, started the company in 1996 with an innovative idea to provide premium sports apparel to Under Armour’s customers. Factors such as ethical standards and integrity, innovation, and financial performance will be analyzed along with the potential impacts these factors have on the success of the Under Armour brand. The most critical factors determining the company’s success are determined and three business actions, including ways to cut costs, expand internationally, and increase sales by expanding its product base, will be evaluated in reference to the factors deemed necessary for Under Armour’s success. Business Analysis of the Under Armour Brand Introduction Kevin Plank, founder and CEO, formed Under Armour in 1996 with the innovative idea of providing high-performance sports apparel to athletes. Plank used a sophisticated textile design to repel sweat and keep athletes cool while performing in competitions and working out. Under Armour has designed performance enhancing apparel to include athletic tops, pants, shoes, shorts, bras, and sweaters. Thompson stated that “Plank believed that Under Armour’s potential for long term...
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...Table of Contents Written Report Executive Summary…….............................................................................. 2 Company Profile………………………………………………………..…..3 Industry Analysis…………………………………………………………...4 SWOT Analysis………………………………………………………….....8 Valuation…………………………………………………………………..12 Conclusion……………………………………………………………..…..13 Historical Ratio Analysis Valuation ratios………………………………………………………........17 Dividends………………………………………………………………….17 Growth rates……………………………………………………………….18 Financial strength………………………………………………………….18 Profitability ratios………………………………………………………….19 Management effectiveness…………………………………………….......19 Efficiency………………………………………………………………….19 Valuation Tables Pro Forma Income Statement……………………………………………..21 Pro Forma Balance Sheet…………………………………………………23 Free Cash Flow……………………………………………….…………...25 Free cash flow valuation summary……………………………..……...….26 WACC calculation………………………………………………………...27 Sensitivity analysis………………………………………………………...27 Graphs/ Plots Net income (loss) by year……………………………………………….…28 Free cash flow by year……………………………………………………..28 Written Report Executive Summary Executive Summary Introduction of the Firm Under Armour (UA) was incorporated on July 1, 1996; producing and distributing performance apparel and footwear for athletes of all ages. The brand engineered a fabric that enhances performance and comfort through its “moisture wicking” fabrications that helps athlete’s performance no matter the weather...
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...increase market share. The Under Armour brand has been built on differentiation, authenticity, and originality. An advanced second skin microfiber under garment to control perspiration and body temperature, for athletes as well as those who lead active lifestyles, is the cornerstone of Under Armour’s business. Since founder Kevin Plank first launched the original Under Armour compression t-shirt in 1996, the company has experienced rapid growth, with distribution to over 500 retail stores, outfitting agreements with athletic teams, and international expansion. Over the past decade, Under Armour has expanded its marketing efforts and has not limited itself to only athletic wear by increasing its product offerings to include footwear, accessories, children’s wear, and women’s active wear. Problem Statement Under Armour has excelled in its product and marketing strategy to date, however the company must seek to improve the future prospects for growth, including, but not limited to, product manufacturing, operations and distribution, and market expansion. Analysis With the growing popularity of collegiate and competitive sports and physically active lifestyles Under Armour has experienced continuous growth and success, despite the many competitors saturating the sports apparel market in recent decades. Such notable success and exponential growth is due largely to Under Armour’s product innovation and differentiation. This analysis will evaluate Under Armour’s current strategy...
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...UNDER ARMOUR Ecomonic Analysis Wisniewski, Angela Table Of Contents 1. Executive Summary 3 2. Company History and Analysis 3 a. Strengths 4 b. Weaknesses 4 c. Opportunities 5 d. Threats 5 3. Microeconomic Analysis 5 4. Macroeconomic Analysis 7 5. Market Structure- Monopolistic Competition 8 e. Consumer Demand 9 6. Market Competition 9 7. Managerial Recommendations 11 8. Conclusion 13 9. Works Cited 14 Executive Summary Under Armour is in the Textile- Apparel Clothing industry, in the consumer goods sector. The market has been driven by economic recovery, new product offerings and a rising degree of consumer confidence. This is a diverse industry, with specialized companies and competitors. Under Armour is a developer and distributor of athletic apparel, footwear and accessories for all ages and sexes. In November of 2005 Under Armour went public with an IPO and has since grown into a multi-billion dollar company gaining brand recognition through contracts with the Notre Dame Program and partnering with large nationwide retailers. The company primarily markets to consumers in North America. Internationally the company sells products to countries in Europe and a third party licensee sells products in Japan. Under Armour still faces heavy competition and competitors include large apparel, footwear and sporting goods companies with...
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...Chapter Internal Factor Analysis Strengths and Weaknesses (SWOT) D.1 Under Armour Corporate Structure Analysis Internal Environment Under Armour Corporate Culture Analysis Below is some of the corporate culture that Under Armour Implemented to the company * Founder’s Beliefs Kevin Plank as a founder of the under armor, since the beginning of his leadership, has always emphasized to each of its employees to always believe that the UA will evolve into big company. * Leadership Culture UA as the one biggest Company in sportswear certainly has a view to the future. To reach its goal in the future, UA needs a good leader. To support this Culture, UA create a Training program. * Team Oriented Culture Under Armour accentuate teamwork and collaboration than individual effort to create new product, teamwork and collaboration also give many input to create a great poduct. This also minimize risk in develop new product. * Hard Work Kevin Plank as a founder of UA, has a good work to increase the UA performance since the beginning. This causes the hard work of the Kevin Plank to reach their goals to make UA become biggest company in the sportswear. This culture also transferred to the employees, each employees of UA must have a passion to work hard to reach the company goals. * Innovation Culture UA ralize that company will growth with an innovation to compete with another company such as adidas and nike. With an innovation as a core strategy throughout the...
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...Case Study: Under Armour 1. How strong are the competitive forces confronting Under Armour, Nike, and The adidas Group? Do a five- forces analysis to support your answer. The analysis of the Porters five forces are very important to business entities. Based on the analysis a business can evaluate their current position and positions that they plan to progress towards as it relates to the industry they are operating in. The following is my five forces analysis of the competitive forces confronting the companies that operate in the industry that Under Amour, Nike and Adidas operate in. Competitive Rivalry: There are many companies in the sports apparel, footwear and accessories industry, such as Nike, Adidas, Puma, Champion, New Balance etc. just to name a few. Many of the company’s competing in the industry offer a wide variety of similar products and each is trying to establish its brand as the brand for customers to commit their money and loyalty towards. What is obvious right away is that Nike and Adidas are Under Amour’s two biggest competitors and they have the highest percentage of market share. All three companies are established, have good resources, strong finances, sound marketing plans and popular celebrities that they can use to endorse their products. Therefore I think it’s safe to say that competitive rivalry in the industry is pretty strong. Supplier Power: The supplier power in the industry is low because there are many manufacturers...
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...Exhibit 1: PESTEL Analysis A PESTEL Analysis targets the components of strategic significance in the macro-environment and measure market potential for success or failure. From this case, we identify the analysis as follows: Factor | Trend | EvaluationO = OpportunityT = Threat | Impact1 = Low5 = High | Political | FDI Policies | T | 2 | Economic | - Increase in price of raw materials and resources- Growth of income- Chinese labor cost increasing | TOT | 553 | Social | - Consumers seek quality- Women desiring healthier lifestyle | OO | 33 | Technological | - Increase in E-Commerce | O | 4 | Environmental | - Complying with federal, state, and local environmental protection laws | T | 4 | Legal | - Customs and trade regulations | T | 4 | Exhibit 2: Five Forces Analysis of the Sports Apparel Industry Porter’s Five Forces Model depicts how intense the competition between the companies are and what specific factors relate to each force. The sports apparel industry is highly competitive and demanding. Many players exist in the game, which also increases competition. Rivalry: Moderate-Strong * Buyer demand is high and increasing (-): From 2006 to 2011, Under Armour’s net revenues tripled, starting at $430,689 and ending at $1,472,684 in 2011. These numbers are expected to continue to grow in years to come * Ease of brand switching (+): Other competitors such as Nike and Adidas typically price items in the same range as Under Armour * Product differentiation...
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...Under Armour’s Strategy Case Analysis 1. How strong are the competitive forces confronting Under Armour, Nike, and The Adidas Group? Provide a five-forces analysis to support your answer. The competitive forces confronting Under Armour, Nike, and the Adidas Group are very strong. There are many other companies who offer similar sportswear and gear lie these three groups. A consumer has a wide variety of merchandise available to choose from, and the price to pick one brand over another costs the customer very little. All the competitors have allowed the market to be saturated with similar merchandise without much differentiation in products. The companies have an equal economic capability and economy of scale as Under Armour, Nike, and Adidas Group which allows them to remain equally competitive. The competitive pressure coming from new entrants into the sportswear apparel industry is relatively high. Active lifestyles are promoted heavily and customer demand for athletic products are high which means newcomers can expect to earn exponential profits. If a company has the resources to enter the market, then they could become a formidable competitor. The competitive pressure coming from firms offering substitute products is very high. Substitutes are often attractive to consumers because they are readily available for a nice price. Consumers often become used to buying substitutes because they suffer very low cost when switching products. Competitive pressure...
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...Jake Phillips Case Study 1 Financial Reporting and Analysis Under Armour Inc. Under Armour is a sports clothing and accessories company. The company is a supplier of a wide range of sportswear and casual apparel mainly focusing on hi-tech sportswear for professional athletes. It has now broadened its horizons and Under Armour began offering footwear in 2006, it continues to expand its offerings. The company was founded on January 26, 1996 by Kevin Plank, a former University of Maryland special team’s captain for the university football team. Plank and co-founder Jordan Lindgren, also a former University of Maryland Football player, began their business from Plank's grandmother's basement in Washington, DC. Plank, who got tired of having to change out of the sweat-soaked T-shirts he wore under his jersey, noticed that his compression shorts stayed dry. This was the inspiration to make a T-shirt using moisture-wicking fabric for athletic performance. I chose Under Armour because as a former athlete I wore Under Armours’ apparel since about 2002. I have done some research on them before but I never actually went through the financials. Being from Maryland I thought it would be a good fit for me. From 2009- 2010 Total assets went up by nearly $130 million and equity went up by nearly $100 million. Net revenues increased by 24.2% or $207.5 million. Net income increased by almost $22 million. Under Armour’s Independent Auditor PricewaterhouseCoopers LLP issued...
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...Under Armour Case Study Source: Hogan, 2013 Table of contents Detailed Timeline 3 Business and Corporate Level Planning 4 Brief Summary of the Company Situation in their Competitive Environment, Issues they Face and Clear Problem Statement to Analyze 6 Key Leadership 8 Types of innovation and Evidence of Entrepreneurship 10 Global Presence and Effects 11 Ethics - Examples of Social Consciousness/Corporate Social Responsibility 12 Responsible Wealth Creation 14 Engagement and Plan Alignment & Corporate Culture 15 Wild Card 16 Internal Analysis 17 External Analysis 20 SWOT Analysis 24 Recommendation 27 Bibliography 33 Appendix 37 Team Member Roles 46 Detailed Timeline It all started in 1995 when Kevin Plank, the special teams captain on the University of Maryland football team, noticed that the cotton T-shirts he and his teammates wore underneath their pads were always soaked and filled with sweat (Under Armour, 2012). “There has to be something better,” he believed (Under Armour, 2012). That statement soon launched the performance apparel industry (Under Armour, 2012). That statement also became Under Armour’s generic strategy, which was to develop a better product than there was in the market. While Plank was perfecting his t-shirt after he graduated, he needed funds to launch his apparel line, so he maxed out his credit cards to the tune of $40,000 and set up a company in his grandmother’s basement in Washington, DC (Under Armour, 2012). In...
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