Inside Under Armour’s Big Push into China

under-armour-logoAthletic apparel and footwear maker Under Armour Inc (NYSE:UA) is making a huge bet on China, recently completing its second promotional tour of the country, as it plans a massive roll-out of new stores.

The Baltimore-based company has big plans for its China expansion, as it attempts to gain market share in the world’s second largest economy. From the South China Morning Post:

The sportswear and accessory maker plans to open more than 200 new stores across the country over the next two years as part of its growth strategy, founder and CEO Kevin Plank told South China Morning Post in an exclusive interview during a visit to Hong Kong.

“In China, we have put in everything we have to make it great,” he said.

Under Armour hopes the Chinese market will soon generate at least a billion dollars a year in sales, and the long-term potential could even be much larger.

It started selling in China in 2010, but its truly exponential growth began even more recently. Revenue from the Chinese market shot up to around US$80 million in 2015 from roughly US$7 million two years earlier.

Plank sees China as a vital component of his vision for Under Armour to achieve US$7.5 billion in global revenue by 2018. Its total revenue reached US$3.96 billion last year.

“Without question we believe China alone is a billion-plus dollar market opportunity for the brand,” he said. “While we do that we hope to grow the overall pie, but we are perfectly happy to take market share from our competitors too.”

With revenue growth already in the 30% year-over-year range, success in the massive and rapidly evolving Chinese market could propel UA to new heights.

UA-2016-09-16

UA shares rose $0.22 (+0.57%) to $38.78 in Friday morning trading. Year-to-date, the stock has fallen 3.96%.

You are viewing an abbreviated republication of ETF Daily News content. You can find full ETF Daily News articles on (www.etfdailynews.com)

Powered by WPeMatico