Under Armour has had a rough year. The closure of Sports Authority hurt Under Armour's stock, and then there were announcements that the company had lowered growth forecasts. However, many investors and analysts are now eyeing Under Armour as a good value investment. The thought is that Under Armour is going to move quickly to form new relationships to fill the gap left by the defunct Sports Authority.
Two recent news items are encouraging for those who hold Under Armour stock, as well as those who are looking to buy before the stock rebounds. Here are the two news items of interest.
Under Armour in Talks to Lease Nike Space
One of Under Armour's biggest competitors is Nike. The mega sports brand is the world leader in sports apparel, but Under Armour is looking to take a big chunk out of that market share. One sign that Under Armour is serious about this is their interest in the NYC building that Nike was in talks to lease. The space has around 60 thousand square feet of potential retail space and is located in the heart of one of Manhattans busiest locations. The space is located right near the World Trade Center, which is a popular spot for the many tourists who flock to NYC every year.
The fact that Under Armour is so keen to grab up the space bodes well for the future of the brand. Along with the hotly desirable space in lower Manhattan, both companies are vying for the huge Fifth Avenue space once inhabited by legendary NYC toy store F.A.O. Schwartz.
A Trifecta of New Spokeswomen
Another sign that Under Armour is looking forward and trying to expand their market share is the announcement of the three new spokeswomen: Gisele Bundchen, Misty Copeland, and Lindsey Vonn. Gisele, the world famous supermodel, gives the brand a strong push with women who might not normally be familiar with athletic clothing. Misty Copeland, a star ballerina and the first African American principal dancer with the American Ballet, also helps expand their demographic. Finally, there is Lindsey Vonn, a world class alpine skier and Olympic champ.
These three women will help expand the market beyond college athletic circles and hardcore runners, soccer players, and basketball enthusiasts. Currently, Under Armour is well known for its running shorts and shirts, but this campaign looks to help the company make major inroads into the lucrative sports bra market segment, and these three women are all excellent choices for attracting a new audience.