Under Armour Going After Tennis With Sloane Stephens On Board

Written by: Staff on 3rd May 2013

Under Armour Going After Tennis With Sloane Stephens On Board

epa03617322 Sloane Stephens of the USA in action against Urszula Radwanska from Poland during the BNP Paribas Open tennis tournament in Indian Wells, California, USA, 09 March 2013. EPA/MICHAEL NELSON |

Under Armour has yet to become a major force in tennis, but its influence is growing as it has American 20 year old sensation Sloane Stephens as the face of its push into the sport.

Business is looking up overall for the Baltimore-based performance apparel, footwear and accessories company. First quarter 2013 revenues rose 23% to $471.6 million, topping estimates for $467.79 million. It earned 7 cents a share, ahead of analysts’ forecasts. Under Armour has now posted double-digit sales growth for 15 straight quarters.

Its apparel sales jumped 22% to $346 million, and accessory sales also increased 22% to $36 million. Footwear went up 27% to $81 million.

Its stock is currently trading around $56.91, well ahead of its 52-week low of $44.07. Its P/E ratio is rather high though at 50.13, but its net profit margin for the first quarter of 2013 was 1.66.

“Maybe a little old-fashioned in today’s modern world of reaching consumers, but in Q1, our strategy worked,” said CEO Kevin Plank . “Our Direct-to-Consumer business grew 31% in the quarter, accounting for 26% of total revenues. Our Factory House business was strong and we saw a solid uptick in our e-commerce business in both our average order value and our traffic on the site, driven without question by our I WILL Brand Holiday campaign. When we opened the UA Brand House in Baltimore this February, our goal was to provide the widest breadth of Under Armour products in one retail experience. As part of that, we specifically saw the opportunity to create greater awareness for our Women’s and Footwear business specifically. And while it’s still a very early read, that’s exactly what we’ve seen to date.

Under Armour is making a big push into the Women’s and Footwear business. When it comes to what women tennis players are buying, tank tops and compressions shorts seem to be the most popular.

“The first Brand Holiday was highlighted by our television campaign which focuses on innovation and the next generation of athletes,” he said. “The spot features Sloane Stephens, the No. 2 ranked American in women’s tennis; Bryce Harper, who’s off to a great start for the Nationals in Major League Baseball; Canelo Alvarez, who’s fighting tomorrow night for 3 super welterweight titles; and Armour39, our new biometric performance monitoring system for athletes. We are extending the campaign into the current quarter, amplifying elements of the spot that resonated strongly with our consumer.”

Under Armour has just launched its third iteration of the “What’s Beautiful” competition, expanding its largest female-focused digital experience to-date. “What’s Beautiful 3.0” drives women to meet and exceed fitness goals and empower one another through an online community. The three most inspirational women will receive an all-expenses-paid fitness retreat to Costa Rica, which will feature fitness, surf and yoga experiences.

The third “What’s Beautiful” social competition will be hosted through a mobile app and the microsite whatsbeautiful.ua.com.

The “What’s Beautiful” digital experience was co-created and co-produced by the in-house Under Armour creative team and Philadelphia-based full service ad agency, Red Tettemer + Partners.

©Daily Tennis News Wire

Topics: Sloane Stephens, tennis advertisement, tennis marketing, Tennis News, Under Armour tennis news, Wta