Chief Executive Kevin Plank certainly thinks so: “We believe we’re a … $10 billion brand that is doing $2 billion in business today,” he said. And he could be right. The company has had quite the year in 2013; their stock price has risen up by 35%, and they have seen at least 20% revenue growth from last year.
At it’s current pace experts predict that Under Armour would surpass the $10 billion mark in 2020. The company plans to reach it’s goal by selling to a larger consumer group and by expanding globally.
I believe that Under Armour could use the SWOT Analysis to determine how they can reach their goal even faster. This tool we learned and used in class can be used for even the biggest of corporations. Nike has a long-term growth rate of 11% whereas Under Armour has 21% long-term growth rate. So for young investors who are willing to take some risk should definitely invest in UA, but if you want to play it safe then Nike is the stock for you.
Read more about Under Armour’s success here:
http://www.businessweek.com/articles/2013-09-11/under-armour-ceo-aims-at-nike-adidas-and-10-billion
http://www.cnbc.com/id/100925505
Image from:
http://2.bp.blogspot.com/-lkoek6YewA8/UDGZsa0u_KI/AAAAAAAAGaY/qBch0LdFPYM/s640/rumor-nike-to-buy-under-armour-1.jpg