Under Armour Revenues: Sources And Prospects Overseas



Under Armour’s overseas operations

Unlike its major competitors, NIKE, Inc. (NKE) and Adidas AG (ADDYY), Under Armour, Inc. (UA) doesn’t have a significant presence outside North America yet. The company’s revenues from foreign countries outside North America were about 6% of the total in 2013, but growing strong.

The North American market is also the largest for sportswear companies Lululemon Athletica Inc. (LULU) and Columbia Sportswear Company (COLM).


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Europe, Middle East, and Africa (or EMEA)

Under Armour, or UA, has operations in several European and Asian countries. Sales volumes areas aren’t significant as yet. However, the company is investing for future growth in these markets. Sales are made mostly through retailers and online. UA also sells its products to European sports clubs and teams. For example, the company sells Tottenham Hotspur Football Club replica jerseys to fans worldwide.


The company’s main markets in Asia are China, Japan, and South Korea. The company opened new stores in Asia this year, and plans to roll out more retail outlets in 2015.

In Japan and South Korea, UA has a licensing agreement with Dome Corporation to produce, sell, and market UA products. UA and Dome actively develop products for these markets based on the region’s unique sporting interests. Sales are made through retailers and professional sports teams.

In China, the company sells products through its own stores and through those operated by franchisees. In Taiwan, Australia, and New Zealand, products are sold through independent distributors.

Latin America

Sales via distributors typically have lower margins compared to direct-to-customer sales. In 2013, UA acquired certain assets in a Mexican distributor, after which the company started selling directly in Mexico. It also launched its brand in the key markets of Brazil and Chile. These measures should improve the company’s bottom line.



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