This fast-growing American brand, which had a big stand at ISPO, estimates that its 2007 net revenues will rise by 30-35 percent to $560-580 million, ahead of previous predictions that called for 20-25 percent growth. The same is true for operating earnings, which are expected to increase by 30-35 percent to $74.5-77.5 million.
Under Armour is already in more than 600 stores in Europe, and the company wants to double the score by the end of this year. The brand, which already has a presence in 12,000 doors worldwide, has key account deals with big European retailers such as JJB Sports in the UK, Stadium in Sweden or Karstadt and Kaufhof in Germany, but none of them has an exclusive on its products.
The U.S. company saw its sales grow last year by 53 percent to $430.7 million, generating a gross margin of 50.6 percent and a 98 percent higher net income of $38,979,000. Under Armour has signed base layer deals with five pro European football teams and it is planning to reinvest nearly 12 percent of sales on marketing worldwide. Its new line of cleated footwear, which accounted for $26.9 million in sales in 2006, will be expanded as early as 2008, but there are no specific plans yet to come out with soccer boots.
