• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Farm groups saved Bayer in court over RoundUp cancer claims. Five days later, Bayer called for tariffs on the ingredient farmers rely on

2

Self-made multimillionaire says Canadians 'give no money away' compared with Americans—research shows U.S. giving is more than twice as high

3

Billionaire MacKenzie Scott just donated $20 million to support America’s youth mental health, as a fifth of teens struggle with suicidal thoughts

1

Farm groups saved Bayer in court over RoundUp cancer claims. Five days later, Bayer called for tariffs on the ingredient farmers rely on

2

Self-made multimillionaire says Canadians 'give no money away' compared with Americans—research shows U.S. giving is more than twice as high

3

Billionaire MacKenzie Scott just donated $20 million to support America’s youth mental health, as a fifth of teens struggle with suicidal thoughts
Under Armour

Here’s Why Under Armour’s Stock Is Killing It Today

By
John Kell
John Kell
Contributing Writer and author of CIO Intelligence
Down Arrow Button Icon
By
John Kell
John Kell
Contributing Writer and author of CIO Intelligence
Down Arrow Button Icon
January 28, 2016, 1:25 PM ET
Kevin Plank Under Armour 2016
Founder and CEO of Under Armour Kevin Plank speaks during an IBM keynote address at the 2016 CES trade show in Las Vegas, Nevada, January 6, 2016. REUTERS/Steve Marcus - RTX21CCXPhotograph by Steve Marcus — Reuters
Add Fortune on Google for similar content.

Under Armour founder and CEO Kevin Plank on Thursday celebrated a coronation of sorts. The athletic-gear purveyor–with nearly $4 billion in annual sales–has grown up to become a strong player in a competitive apparel category.

Investors were pleased with the latest results. Revenue for the year grew 28%, with the final quarter up 31%, building on a streak of similar double-digit gains in recent years as Under Armour sells more apparel and footwear to men, women and kids. The strong results helped Under Armour’s stock soar (UA) over 20% on Thursday, as investor worries about slowing growth were assuaged and outlook targets for 2016 were above Wall Street’s expectations.

Plank lauded his brand’s achievements as it celebrates its 20th year in business in 2016. Among the achievements:

  • A decade ago, Under Armour derived 93% of its revenue from apparel, with compression gear representing 64% of the entire business. Today, those figures stand at 71% and less than 10%, respectively, as the brand has carved out success in other categories.
  • International sales totaled just $6 million 10 years ago, primarily driven by a partner’s sales in Japan. Today, that business is worth almost $500 million as it is sold in 60 countries. The hope is for the international sales to make up almost $1 in every $5 dollars in revenue Under Armour earns by 2018.
  • Under Armour didn’t sell a single pair of shoes a decade ago. Today, footwear is nearly totaling $700 million in annual sales. In the fourth quarter of 2015, footwear sales jumped 95% from the year-ago period.

Broadly, consumers are buying more athletic gear not just for the purpose of sport, but also to wear in everyday attire. That trend, called “athleisure,” has helped boost sales for larger rivals like Nike (NKE) and many other brands. It also has lured the attention of startups and in-house brands developed by department stores and fast-fashion sellers.

What’s next for Under Armour? Connected fitness.

It is a small sliver of the company’s business today–$53.4 million in 2015 sales, up 177.8% from the prior year. But Plank spent a lot of time telling investors about the company’s “digital transformation,” which he asserts will be a “business transformation” for Under Armour.

“Before Connected Fitness, we only had retail transaction information for less than 10 million people,” Plank said. That was derived from store and e-commerce purchases.

Now, Under Armour has data from community members who logged two billion activities last year alone. It has spent lavishly to acquire digital and health fitness apps like MyFitnessPal and MapMyFitness. The idea is to use that data to get a better idea of users’ sleep, activity, and fitness. Under Armour wants to build a complete ecosystem to manage health and fitness with data insights.

A word of caution: tech aspirations in the athletic-gear space can be competitive. Nike scaled back on its own initiatives within the space, outsourcing the hardware business for that company’s FuelBand tracker, which faced stiff competition for consumers’ wrists.

Under Armour is also willing to get an assist from partners. Software giant SAP (SAP) is working with the brand under a 10-year pact to help scale up the digital business. Plank said Under Armour would continue to make “big bets with big partners.”

“At Under Armour, we focus on creating products you don’t know you need yet, but once you have it, you won’t remember how you lived without it,” Plank said. “Just like our very first t-shirt.”

About the Author
By John KellContributing Writer and author of CIO Intelligence

John Kell is a contributing writer for Fortune and author of Fortune’s CIO Intelligence newsletter.

See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in

Asia’s founders are decamping to the U.S. as the region suffers a protracted venture funding slump
AsiaVenture Capital
Asia’s founders are decamping to the U.S. as the region suffers a protracted venture funding slump
By Angelica AngJuly 9, 2026
5 hours ago
Hybrid‑work expert Nicholas Bloom says World Cup chaos and pricey commutes are turning July into the summer of remote work
Future of Workremote work
Hybrid‑work expert Nicholas Bloom says World Cup chaos and pricey commutes are turning July into the summer of remote work
By Marco Quiroz-GutierrezJuly 9, 2026
7 hours ago
49% of young adults live at home, up 12 points since 2019. An economist says the fallout will reshape marriage, kids, and home-buying
Economybehavioral economics
49% of young adults live at home, up 12 points since 2019. An economist says the fallout will reshape marriage, kids, and home-buying
By Catherina GioinoJuly 9, 2026
7 hours ago
Microsoft’s emissions surged 25% in 2025 during data center boom
EnvironmentMicrosoft
Microsoft’s emissions surged 25% in 2025 during data center boom
By Matt Day and BloombergJuly 9, 2026
8 hours ago
Trump cheers Gwynne Shotwell as Elon Musk’s SpaceX No. 2 gives $325 million in stock to Trump Accounts
North AmericaSpaceX
Trump cheers Gwynne Shotwell as Elon Musk’s SpaceX No. 2 gives $325 million in stock to Trump Accounts
By Mia OsmonbekovJuly 9, 2026
8 hours ago
Peter Cancro shakes oregano over an open sandwich.
RetailFood and drink
Jersey Mike’s $12 billion IPO filing reveals a $50 million payday for the founder’s stepson and a $41 million jet
By Sasha RogelbergJuly 9, 2026
9 hours ago

Most Popular

Farm groups saved Bayer in court over RoundUp cancer claims. Five days later, Bayer called for tariffs on the ingredient farmers rely on
Economy
Farm groups saved Bayer in court over RoundUp cancer claims. Five days later, Bayer called for tariffs on the ingredient farmers rely on
By Mia OsmonbekovJuly 9, 2026
10 hours ago
Self-made multimillionaire says Canadians 'give no money away' compared with Americans—research shows U.S. giving is more than twice as high
Success
Self-made multimillionaire says Canadians 'give no money away' compared with Americans—research shows U.S. giving is more than twice as high
By Preston ForeJuly 9, 2026
11 hours ago
Billionaire MacKenzie Scott just donated $20 million to support America’s youth mental health, as a fifth of teens struggle with suicidal thoughts
Success
Billionaire MacKenzie Scott just donated $20 million to support America’s youth mental health, as a fifth of teens struggle with suicidal thoughts
By Emma BurleighJuly 9, 2026
11 hours ago
Ex-PepsiCo CEO Indra Nooyi worked from midnight until 5 a.m. as a receptionist to pay for her Yale degree—and she says ‘respect went up’ because of it
Success
Ex-PepsiCo CEO Indra Nooyi worked from midnight until 5 a.m. as a receptionist to pay for her Yale degree—and she says ‘respect went up’ because of it
By Preston ForeJuly 6, 2026
3 days ago
Current price of oil as of July 9, 2026
Personal Finance
Current price of oil as of July 9, 2026
By Joseph HostetlerJuly 9, 2026
14 hours ago
Current price of gold as of July 8, 2026
Personal Finance
Current price of gold as of July 8, 2026
By Danny BakstJuly 8, 2026
2 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.