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Under Armour Financial Analysis

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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 centers located in Maryland. These facilities are set up to build and ship apparel on quick time lines, primarily servicing high profile athlete and team accounts, ensuring continuing high profile brand recognition. In addition to this domestic facility, UA also runs its distribution activities out of two facilities also located in Maryland.
As part of its marketing campaign, Under

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