After shouldering aside Adidas to become the second biggest sportswear brand in the united states, global sports apparel and footwear retailer cheap stephen curry shoes now has Australia in its sights.
Under Amour founder and chief executive Kevin Plank, estimated by Forbes to become worth $US3.2 billion, is speaking to Australian landlords using a view to opening flagship stores in leading 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 follows it to Australia.
The company also hopes to promote more sports T-shirts, leggings, shorts and runners towards the three million Australians that have downloaded one of many company’s four fitness and health apps, three of which were acquired over the past 15 months at a cost of $US740 million ($954 million).
With annual sales of $US3.1 billion, the 19-year-old company edged aside Adidas to get # 2 in the usa sports apparel and footwear market last year and it is hoping to become one of several three top players inside the $1.8 billion Australian market within 5yrs, lifting revenues to a lot more than $100 million.
Under Armour’s sales are growing australia wide by more than 40 % each year, albeit off a low base, and Mr Plank believes that retail stores displaying a lot of company’s range, put together with an enhanced digital offer, will accelerate growth.
Under Armour setup an Australian subsidiary, led by William Phillips, two years ago which is taking advantage of existing relationships with landlords like Westfield Group to secure 800 to 3000 square metre sites “inside the best locations” in Sydney, Melbourne and Brisbane.
“If it’s a fantastic store that may make money and it will surely add to our Australian visits, we’ll open it up,” Mr Plank said.
“It’s not about us trying to cannibalise or take anything from our wholesale partners around about creating an event containing our wholesale partners say ‘wow – I never had any idea that under armour outlet sydney could look this great’.”
The bricks and mortar method is in step with the company’s mantra – “we need to protect this house” – and stores are created to be profitable from the outset instead of a loss-making exercise to develop the Under Armour brand.
“We’ve been exploring in the United States and around the world everything we call our brand house concepts, our committed retail stores,” Mr Plank said. “The word flagship is not really one I’m in love with, it carries this connotation that its OK when we don’t earn money, it’s a marketing and advertising expense.”
“Profitability is actually a culture and our culture is winning, the R of ROI is extremely important, so we’re seeing that with our brand houses … and we’ve built one that’s capable of doing that.”
A former highschool and university football star and self-proclaimed “sweatiest guy around the football field,” Mr Plank started the organization 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 an average 30 per cent a year and the company has clocked up its 19th consecutive quarter of 20 percent-plus revenue growth.
“Once we average just 21 per cent for the following 5 years by 2020, we’re a $US10 billion brand,” Mr Plank said.
Under Armour now has 140 stores in the US and 67 stores beyond the US and sells online to consumers in more than 80 countries.
The corporation is additionally benefiting from the boom in “athleisure” by having apparel such as yoga pants and fishing shirts to the range. However, its decision to invest a lot more than $US700 million buying physical fitness apps MapMyFitness, Endomondo and MyFitnessPal is questioned by analysts.
Mr Plank says the technique is about 83dexlpky an electronic digital community and growing sales by better understanding customer needs.
“It’s simple math that the more someone exercises, the greater under armour shoes melbourne they’re gonna need and apparel they’re likely to need,” he said. “This is not about adding a sixth growth driver, this can be something which can enhance the five existing growth drivers we have now.”