After shouldering aside Adidas to become another biggest sportswear brand in america, global sports apparel and footwear retailer cheap stephen curry shoes now has Australia in their sights.
Under Amour founder and chief executive Kevin Plank, estimated by Forbes to get worth $US3.2 billion, is conversing with Australian landlords using a view to opening flagship stores in main cities inside the next 12 months, augmenting wholesale sales through Super Retail Group’s Rebel Sport chain.
Under Armour brand is hoping its US success will follow it to Australia.
The company also hopes to sell more sports T-shirts, leggings, shorts and runners for the three million Australians that have downloaded one of many company’s four health and fitness apps, three of which have been acquired during the last 15 months for around $US740 million ($954 million).
With annual sales of $US3.1 billion, the 19-year-old company edged aside Adidas to be # 2 in america sports apparel and footwear market a year ago and is aiming to become one of the three top players in the $1.8 billion Australian market within five-years, lifting revenues to greater than $100 million.
Under Armour’s sales are growing around australia by greater than 40 percent annually, albeit off a low base, and Mr Plank believes that retail stores displaying more of the company’s range, put together with an enhanced digital offer, will accelerate growth.
Under Armour create an Australian subsidiary, led by William Phillips, 2 yrs ago which is making the most of existing relationships with landlords for example Westfield Group to secure 800 to 3000 square metre sites “from the best locations” in Sydney, Melbourne and Brisbane.
“If it’s a great store that can generate income and will also increase our Australian visits, we’ll open it,” Mr Plank said.
“It’s not about us looking to cannibalise or take anything from our wholesale partners up to about creating an event which has our wholesale partners say ‘wow – I never had any idea that under armour sydney could look this great’.”
The bricks and mortar method is consistent with the company’s mantra – “we must protect this house” – and stores are designed to be profitable from the outset as opposed to a loss-making exercise to create the Under Armour brand.
“We’ve been exploring in america and across the world everything we call our brand house concepts, our committed retail shops,” Mr Plank said. “The word flagship is not really one I’m crazy about, it carries this connotation that its OK once we don’t generate income, it’s a marketing and advertising expense.”
“Profitability is actually a culture and our culture is winning, the R of ROI is vital, so we’re considering that using our brand houses … and we’ve built a model that’s capable of doing that.”
A former highschool and university football star and self-proclaimed “sweatiest guy on the football field,” Mr Plank started the company in 1996, making light-weight football shirts and compression pants from fabrics that wick away sweat.
Since listing nine years ago, Under Armour’s sales and earnings have risen a standard 30 per cent each year as well as the company has clocked up its 19th consecutive quarter of 20 percent-plus revenue growth.
“When we average just 21 % for the following five-years by 2020, we’re a $US10 billion brand,” Mr Plank said.
Under Armour has 140 stores in the usa and 67 stores outside of the US and sells online to consumers in more than 80 countries.
The corporation can also be making the most of the boom in “athleisure” by adding apparel such as yoga pants and fishing shirts to the range. However, its decision to pay greater than $US700 million buying fitness and health apps MapMyFitness, Endomondo and MyFitnessPal continues to be questioned by analysts.
Mr Plank says the strategy is about 83dexlpky a digital community and growing sales by better understanding customer needs.
“It’s simple math the more someone exercises, the greater under armour shoes melbourne they’re likely to need and apparel they’re likely to need,” he was quoted saying. “This is simply not about adding a sixth growth driver, this really is something that can improve the five existing growth drivers we have now.”