Under Armour: Improving upon First Year Billion Dollar Revenue from 2010

Under Armour, the cutting-edge sports apparel and accessories company, posted their first billion-dollar revenue year in 2010 and look to improve even further in 2011. The company reported results from the first quarter of 2011 a net revenue increase of 36% from the same quarter in 2010. The net revenues were $312.7 million in 2011 compared to $229.4 million in 2010.  Net income increased from $7.2 million in the first quarter of 2010 to $12.1 million for the first quarter of 2011. Under Armour had forecasted 2011 net revenues in the area of $1.33 billion to $1.35 billion, which represented a growth of 25 to 27% from 2010. Based on the results from the first quarter of 2011, Under Armour now anticipates 2011 net revenues somewhere around the $1.37 billion to $1.39 billion ranges, which would be a 29 to 31% growth over 2010.

These increases can be attributed to Under Armour activity in the last few months. Under Armour was represented both on and off the field at the NCAA Football National Championship game. Auburn University donned jerseys and apparel by Under Armour, as well as commercial spots seen on TV throughout the game.  Also, the company signed Tom Brady, NFL Superstar quarterback for the New England Patriots, to an endorsement deal and secured $325 million for expansion. The company is also dipping into the Barclays Premier League by announcing a partnership with the Tottenham Hotspur, an English football club. Kevin Plank, Under Armour CEO and Founder had this to say about the partnership, “This is a highly significant and exciting partnership for Under Armour. Aligning with an elite organization like Tottenham Hotspur demonstrates our deep commitment to growing the Under Armour brand in the UK and showcasing our apparel and footwear on the world’s most prestigious athletic stages.” With their rise, sports apparel mainstays such as Nike and Addidas can hear Under Armour coming.

Sources: 

http://investor.underarmour.com/releasedetail.cfm?ReleaseID=571658

http://www.sportbusiness.com/news/183218/under-armour-makes-uk-move-with-tottenham-partnership?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+sportbusiness+%28Sportbusiness+Newsfeed%29