After shouldering aside Adidas to be the 2nd 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 be worth $US3.2 billion, is conversing with Australian landlords using a view to opening flagship stores in primary cities in 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 corporation also hopes to market more sports T-shirts, leggings, shorts and runners for the three million Australians who have downloaded one of the company’s four health and fitness apps, three of which were acquired over 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 become number two in the usa sports apparel and footwear market this past year and is looking to become one of many three top players in the $1.8 billion Australian market within five-years, lifting revenues to a lot more than $100 million.
Under Armour’s sales are growing within australia by more than 40 % each year, albeit off the lowest base, and Mr Plank believes that retail stores displaying a lot of company’s range, coupled with an enhanced digital offer, will accelerate growth.
Under Armour set up an Australian subsidiary, led by William Phillips, a couple of years ago and it is taking advantage of existing relationships with landlords such as Westfield Group to secure 800 to 3000 square metre sites “from the best locations” in Sydney, Melbourne and Brisbane.
“If it’s an incredible store that can make money and it will surely enhance our Australian visits, we’ll open it,” Mr Plank said.
“It’s not about us seeking to cannibalise or take anything clear of our wholesale partners around about creating an event that has our wholesale partners say ‘wow – I never had any concept that under armour outlet sydney could look this great’.”
The bricks and mortar strategy is in step with the company’s mantra – “we have to protect this house” – and stores are made to be profitable from your outset rather than a loss-making exercise to create the Under Armour brand.
“We’ve been exploring in america and throughout the world whatever we call our brand house concepts, our committed retail shops,” Mr Plank said. “The phrase flagship is just not one I’m in love with, it carries this connotation that its OK once we don’t generate income, it’s an advertising and marketing expense.”
“Profitability can be a culture and our culture is winning, the R of ROI is essential, so we’re considering that with our brand houses … and we’ve built one that’s able to do that.”
A former highschool and university football star and self-proclaimed “sweatiest guy about the football field,” Mr Plank started this business in 1996, making light-weight football shirts and compression pants from fabrics that wick away sweat.
Since listing nine years back, Under Armour’s sales and earnings have risen a typical 30 per cent a year along with the company has clocked up its 19th consecutive quarter of 20 %-plus revenue growth.
“If we average just 21 % for the following 5yrs by 2020, we’re a $US10 billion brand,” Mr Plank said.
Under Armour now has 140 stores in the usa and 67 stores away from US and sells online to consumers in additional than 80 countries.
The corporation is also using the boom in “athleisure” with the help of apparel such as yoga pants and fishing shirts to its range. However, its decision to enjoy greater than $US700 million buying health and fitness apps MapMyFitness, Endomondo and MyFitnessPal has become questioned by analysts.
Mr Plank says the strategy is about 83dexlpky an electronic digital community and growing sales by better understanding customer needs.
“It’s simple math that this more someone exercises, the better under armour shoes melbourne they’re likely to need and apparel they’re planning to need,” he explained. “This may not be about adding a sixth growth driver, this is a thing that can increase the five existing growth drivers we certainly have.”