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TMFJMo (68.94)

This Will Be One of the Big Winners This Holiday Season

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December 20, 2013 – Comments (2) | RELATED TICKERS: AMZN , NKE , UA

If you're looking for one of the companies that has set itself up for a strong holiday season, Under Armour has to at least be on the list. The company has been doing a lot right lately and when the dust settles come earnings season don’t be surprised to see Under Armour as one of the winners of the season.

Under Armour has undergone a tremendous holiday push with direct-to-consumer and online sales and 2013 has been a great year of new products as well. Products like ColdGear Infrared, Spine running shoes and even Armour39, the company’s effort to integrate more technology into the mix along with the recent acquisition of MapMyFitness.

Just before Black Friday kicked in, Under Armour launched their holiday ad promotion which has been impressive. Free shipping any order and free two-day for orders over $150 dig right in to what we know is the online consumer's number one point of focus: free shipping. Its tremendous ad push has used Google Lightbox Ads for extremely engaging content. Further, Under Armour is embracing social media with more than 2.6 million Facebook page likes and 270,000 Twitter followers. The relatively small investment in social media today will pay big dividends down the road and companies that embrace it early will win big.

It’s impressive to think that Under Armour today is still a small company when compared to Nike; in fact Nike has more than 8 times the market cap. What this says to me is there is plenty of room for this company to grow. According to IBISWorld research the sporting goods market in the US alone is a $40 billion opportunity and growing. But when you pan out and look at all of the opportunities within the sports industry along with the fact that it's a global opportunity, $40 billion is just the tip of the iceberg. Remember Nike brings in about $26 billion in sales annually; Under Armour hopes to reach $3 billion in 2014.

I recently filmed an Ask A Fool segment on the question, "If you had one and only one stock to hold for the next five years, what would it be? For 10 years?" My answer for the 10 year holding? Under Armour. Click here to link to the video where you’ll get a better idea of my thinking, along with my answer for the stock I’d hold for 5 years too.

Foolish best,

Jason 

2 Comments – Post Your Own

#1) On December 20, 2013 at 10:06 PM, tdotsports1 (81.02) wrote:

Spot on.  UA has a ton of room to grow.  They are becoming more innovative and most importantly are really growing their woman's line.

  

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#2) On December 22, 2013 at 2:58 PM, TMFJMo (68.94) wrote:

@tdotsports1: Thanks for reading and your comment. One of the first things I look for in any potential investment is market opportunity and Under Armour's is just phenomenal at this point.

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