Under Armour, Baltimore, announced its long-term growth plans at its biennial Investor Day meeting, including a net revenues target of $7.5 billion by 2018.
The figure would represent a 25% compounded annual growth rate from the $3.1 billion in net revenues from 2014.
“The investments we have made and will continue to make are a testament to the extended runway of growth we see ahead and provide us with the confidence in raising our long-term net revenues growth rate target from +22% to +25%,” says Kevin Plank, chairman and CEO, Under Armour. “Building off of the incredible consumer demand we are experiencing for the brand, we firmly believe we are just getting started in our pursuit to become not only the definitive performance sports brand, but a truly great global brand.”
Additionally, the company set a long-term operating income target of $800 million, which represents a 23% compounded annual growth rate from $354 million in 2014.
Several athletes sponsored by Under Armour have recently had great success, including golfer Jordan Spieth, who won the Masters and U.S. Open this year, and basketball player Stephen Curry, who led his Golden State Warriors victory in the NBA Finals. Among others, they have boosted the brand’s visibility.
“We are in a unique time in our Company’s history with unprecedented brand momentum providing a much longer and wider runway of opportunity than ever before,” Plank says. “With this visibility, we are moving decisively to take advantage of this moment in time and deploy resources that will drive near-term results, but more importantly, position us for success well beyond our 2018 targets.”
For more information, visit underarmour.com. — J.B.