With Under Armour on track to hit its $4 billion revenue goal a year ahead of schedule, the Baltimore company is setting its sights on becoming a $7.5 billion company by 2018 by investing in footwear, international markets and technology to get there.
“This is not our finish line,” Under Armour Chairman and CEO Kevin Plank told a room of about 100 investors at the company’s biennial Investor Day on Wednesday. “This is simply a moment in time for our brand.”
If Plank achieves his goals, Under Armour would become the first Fortune 500 company based in Baltimore.
Under Armour’s management team used the company’s success with technology as the centerpiece of its presentations, specifically the brand’s mobile apps that have attracted 150 million users and counting. The company unveiled UA Record 2.0, an app that can track users’ nutrition, sleep, fitness and activity. A promo video featuring images from the app is not available to view for the public and was not included in the Investor Day webcast.
The ad for the revamped app features the question, “how do you feel?” to help users keep track of what habits make them subjectively “feel” better. The app has the capability to connect to a range of wearable devices. The current version is the No. 3 most downloaded app on the App Store in the health & fitness category.
Plank said the data can change people’s relationships with their doctors, as a more sophisticated version of a medical chart.
“Imagine having the ability, if you could look back and say, ‘How were you feeling 5 days ago?’”
The apps also have given Under Armour what Plank called the “largest database of food ever recorded,” with data from 195 countries.
But the goal of this technology is to bring users back to the heart of why Under Armour was created: to sell shirts and shoes.
“We will never forget our core and where we come from,” said Plank, adding that he writes “don’t forget to sell shirts and shoes” in red ink on his whiteboards when he brainstorms.
Chief Digital Officer Robin Thurston said the Consumer Fitness apps will generate $200 million in apparel revenue by 2018.
“We will connect the dots. We will connect the sensors all in one place,” he said.
Mobile business is already up 120 percent this year and the company wants e-commerce to increase five times by 2018.
“Five times is very doable for us,” said Chief Revenue Officer Jason LaRose.
Footwear is also a major part of Under Armour’s growth strategy.
“We are undoubtedly a footwear brand,” said footwear and innovation president Kip Fulks.
Under Armour’s performance running shoes, including the Gemini and Bandit, have earned critical acclaim and are slowly reaching consumers, said Peter Ruppe, senior vice president of footwear. The Bandit costs $100 and was named best buy in Runner’s World Magazine. The Gemini costs $130.
“We really are getting somewhere but it’s taking it step by step,” said Ruppe.
Footwear is expected to bring in $1.7 billion in revenue by 2018, according to the presentation.
By 2018, the company’s plans to make its international presence vastly different than it is today by having 80 percent of Under Armour stores located outside North America.
“We are tripling our footprint,” said, Susie McCabe, senior vice president of global retail, adding that 70 percent of the sporting goods business takes place outside the United States.
In Asia, Under Armour just opened a large store in Shanghai and plans to enter Brunei, Indonesia and Vietnam in 2016 and India in 2018.
Also by 2018, 70 percent of Under Armour stores will be run by partner companies, compared to the current share of 35 percent.
At the end of the six-hour session, Plank surprised investors by bringing in Stephen Curry from the Golden State Warriors to talk about his championship experience. Curry gave Plank a signed contract during his appearance announcing an extension of his partnership with Under Armour through 2024.