Getting under the skin of Under Armour

With summer holiday season almost here (although the British weather would suggest otherwise) many of us will be doing our best to get fit and healthy by getting to the gym more regularly.

It is also the time of year when many of us venture into the great outdoors to take part in various half marathons and marathons, or sports matches. And if we’re not posting about our sporting achievements on social media, then it never happened!

And showing off our sporting prowess usually requires a whole new wardrobe, of course.

The world of sports wear is a competitive one – just like sport itself.

Well-known and established brands such as Nike, Adidas and Puma have dominated sportswear for years.

But Under Armour has held its own in the market, thanks in part to endorsements from British boxer Anthony Joshua and former wrestler Dwayne Johnson, also known as ‘The Rock’.

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The Rock’s wireless earbuds and headphones have been a sell-out for the brand, although most of us will need to do more than wear a pair of earphones if we want to match Dwayne Johnson’s fitness levels.

The brand has been able to fight for space in what might seem like an overcrowded market, so clearly the company is doing something right with its range of activewear and accessories for men, women and children.

Under Armour seems to have broad appeal, from professional sports stars and gym fanatics who like to post their workout regimes on Instagram, through to those of us whose idea of intense exercise is a quick run around the local park once a week.

The company has continued to put its best foot forward. In its first quarter financial results published in May, the company reported revenue was up 2% to $1.2bn, while net income was $22m or $0.05 earnings per share.

Its range of footwear saw the biggest revenue increase, up 8% to $293m, which it attributes to its ‘run category’.

This is an improvement on the company’s financial update at the end of 2018, when investor disappointment caused the share price to plunge. There were particular concerns about its performance in the North American market, which continued to struggle in the first quarter of 2019, as North America revenue decreased 3% to $843m.

But the Asia Pacific region is more than making up for this lack of US growth.

Under Armour’s share price hasn’t broken too much of a sweat about the competition though, trading as it is at around $26.

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