¶ … Armour Analysis Under Armour

The Under Armour company makes sports clothing as well as accessories. It is an American company. It mainly focuses on sportswear of the hi-tech variety that is marketed to professional athletes. However, anyone can buy clothing from the company. It offers sportswear as well as apparel that is more casual, and also started offering footwear only a few years ago. It has won awards, and has many sponsorship deals with everything from Football to Martial Arts. Discussed here will be sales and revenue information, along with financial and market analyses, the opinion of Under Armour on Wall Street, a brand history of the company, and information about one problem the company faces.

Sales

As of fiscal year 2009, Under Armour saw sales revenue of $856 million (Under, 2009). Naturally, that will fluctuate each year with the economy, new products and lines, and other factors that can affect sales numbers.

Gross Profits

Fiscal year 2009 brought about $770.7 million in revenue after operating income had been subtracted (Under, 2009). Of course, there is more to subtract before the final profit numbers are tallied, and net profits are often far lower than gross profits due to all of the other expenses that must be removed from the earned revenue.

Cost of Doing Business

The cost of doing business is often difficult to determine because there are many variables that companies do not readily provide to the public. However, for fiscal year 2009 the cost of doing business worked out to roughly $38.5 million (Under, 2009).

Market Analysis

Under Armour does well as a company in the marketplace because it is based in the U.S. But caters to a worldwide audience (Barnett, 2008). It does not matter what country an athlete (or anyone else) lives in, because it is possible for that person to...

That is great news for anyone who wants to purchase from the company, but it also means that the company spends quite a bit to package and ship its products. Another issue that Under Armour must look at is the level of marketing it is doing to those who are not athletes (Barnett, 2008). By marketing mostly to athletes, it is possible that Under Armour is missing out on a large market that it has not tapped into and that could help its brand grow further. There are other areas of the market where Under Armour is not appreciated and where its name might not even be recognized. If it wanted to, the company could change that and possibly see a significant jump in sales. Of course, it would have to spend money to make money in that instance, so that would be something that would need to be very carefully considered in order to make sure it was cost effective (Terry, 2010).
Financial Analysis

According to the sales and revenue figures for Under Armour, the company is performing well. It has a positive cash flow, and its operating expenses and cost of doing business are not too high for the amount of revenue it has coming in each fiscal year (Terry, 2010). Its total assets and total equity numbers are also both above $400 million (Under, 2009), so the company is holding onto some of its money instead of paying it all out to cover its debt. That is the sign of a company that has more income than what is going out, and it is also a sign of a company that is not too far in debt. All large companies have credit lines, but that does not mean all companies are irresponsible with money. Under Armour appears to understand this and be committed to taking care of its financial obligations as well as its customers.

Wall Street Opinion

The opinion of Wall Street is important, because it provides an indication of what investors and financial professionals…