Under Armour (NYSE:UA) has been on a terrific run in 2014. The footwear and apparel retailer keeps alluring customers with its comforting and trendy designs. There is no single speck that can instigate the investors to let go of this skyrocketing stock. The iconic brand never ceased displaying a flamboyant creativity and innovation via apparels, footwear and accessories.
It has evolved supreme over the years, working under its own stream. The penetration of this multi-category brand into athletics is like an additional plus point. Its resonation with consumers has brought the company above 30% growth in every product category.
Under Armour enjoys plenty of opportunities that go hand in hand with the performance statistics. With its grip over catering customer’s demands, UA secured earnings per share of $0.06 surpassing the analysts’ estimate of $0.04.
Widening business by reaching to athletes all over the globe drove the company into new dimensions, thereby increasing its sales. Revenues leaped up to $642 million from the last year’s $472 million, also thumping the analysts’ estimate of $598.77 million. Revenues boosted up by an appreciable 36%.
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- UA 15-Year Financial Data
- The intrinsic value of UA
- Peter Lynch Chart of UA
Being popular inevitably grants more offers and demands. On this note, the rising popularity of UA stands vital. The undue advantage of implementing advanced technology in its outlets also plays well for Under Armour. The fame bringing performance of a young golfer, John Spieth, and his partnership with UA attracts customers, thereby increasing revenues.
Running business is the prime factor behind its gleaming success. The brand has shifted to apparel, prioritizing it over other categories. It has bagged lucrative platforms like the Speedform that has offered UA an eminent hoist in sales and marketing of its apparels.
UA has already drilled through the football accessories. Polo shirts having properties of keeping cool and dry, with a looser fit and also precise feel and comfort, is a highlight to its portfolio. Just in the wake of football, the brand is stimulating its way into the golf business. The North American-based brand is all set to run at full pelt by having converged $100 million from the golf business. It holds peculiar capabilities of excelling in every sectionin which it goes. UA will soon present advertising gimmicks by collaborating with celebrated young golfers and footballers.
Expansion of the brand into major markets across Latin America, Europe, Asia and Australia will provide UA a vast room to exhibit its lurid products and ignite the entire business. There are multiple productive strategies in view for Under Armour. The company has recently extended its lines in Brazil and is constantly escalating its abilities to expand into the athletic field. The brand expects to make the best of FIFA 2014 held in Brazil. Moreover, the sales gained 9% traction in athletic apparel versus 2% in other apparel. It aims to stand tall by establishing itself as a global brand for athletes.
New York’s SoHo is ennobled as UA opened the much coveted “Brandhouse” in the city. The company is delivering highly attractive services to its customers and has equipped the SoHo brandhouse with mobile POS systems. If this tactic emerges as a hit in market, UA will open similar Brandhouses in almost every important location internationally.
Under Armour is thus incorporating in its outlets, technology and innovation. This trend-setting brand possesses all the requisite traits that a consumer merchandise should have. Its balance sheet is spellbinding and conveys strong cash equivalents. UA obtained a rise of 79% in the international business sector which exemplifies its ability to capture international markets.
Currently, UA focuses on women’s apparel as it senses the need generated by women’s shopping whims. Women’s apparel is a source of high sales that is likely to benefit the company’s buzz score. This craze for new trends and magnificent designs among women will develop the brand even better.
Under Armour has undoubtedly been a brilliant stock to hold for investors and in my opinion, it will continue to be. Although on a fundamental basis it is more expensive that its counterparts, it has more room to grow than other big players. Therefore, I think Under Armour is a great buy right now.