$27.10
1.17 (+4.51%)
Under Armour, Inc. (UA)
CAPS Rating:
The Company's principal business activity is the design, development, marketing and distribution of technologically advanced, branded performance products for men, women and youth.
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Moving into athletic shoes to take on Nike. Great clothes, hugh profit margin, and all I see on the kids in the leagues that my children participate in is UA clothes. None of these kids are wearing Nike or Addidas anymore. You know brand loyalty, hit the young ones and let them buy your stuff for life. I like this company long term.
I absolutely cannot believe how many young people I see sporting this gear. I noticed this about a year ago when I was watching soccer games at a near by college. I was visiting my friends house a few days ago and his son left a pair of cross trainer shoes out on the living room floor. I was happy to see under armours expansion into foot wear was doing well. This stock is real money winner for me. Also I was shopping for a few shirts to show of my not so impressive physique and an under armour tee-shirt goes for about $50. WOW!
I have to agree. Although I was silly enough to ride this stock to the bottom, I work in a position where I contact traveling members of the public all day. I see at least 3 times as many items of UA gear as I see Nike and Rebok put together, and it's primarily the younger individuals. As the younger generation become the moneymakers, that will only increase unless Nike does something. They haven't yet...
great point about the young kids and brand loyalty. Their product isn't all that different from comparable nike and addidas brands, but if there's a price difference, no one noticed because they've built such prestige for themselves with their advertising. Even though its an expensive product in a down market, if the market rebounds i would expect them to grow rapidly. They've done a good job so far in every expansion move they've made, and i think there's TONS of room for growth long-term.