3 Signs Under Armour’s Growth Potential is on the Rise
Under Armour (UA) has grown rapidly since going public in 2005, with the company’s valuation up 2,000%. The company’s brand and visibility has improved, too, pushing its revenue growth up to 31% year-over-year last year and reaching 24% sales growth during the most recent quarter compared to a year prior.
Investors should be keeping a close eye on the apparel company, as signs are pointing to massive growth potential in the coming years.
Three signs that the company’s growth is ready to skyrocket include:
1. International Sales Are Up
Revenue from China in 2015 was more than the company’s revenue for all of 2014. International growth for the company is on the rise, leading to a more diverse consumer base. International sales rose 56% last quarter alone.
2. Under Armour Slated to Release Sportswear and Casualwear
The company is lagging behind the competition, especially in the basketball shoe market. Purchases in the market are geared towards style, with 85% of consumers stating that they buy basketball shoes for style and not sport.
Sales have suffered due to a lack of a casualwear lineup.
Under Armour is releasing a new casualwear and sportswear lineup in the fall, which will be geared more towards the “style” wearer.
3. Celebrity Endorsements Are Up
Sports apparel companies rely heavily on celebrity endorsements to push their sales. The company has seen a surge in celebrity endorsements in recent months, with Stephen Curry leading the company’s “big name” list.
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