"Under Armour? is an American company founded by Kevin Plank a former University of Maryland football player in 1996. Initially, Kevin just wanted to make outfits that would allow athletes to be comfortable in their clothes during their practice sessions. Everything started with a plan to make a "Superior T-shirt?, that would kept the athletes in good comfort and avoid suffocation or any other discomfort during their workouts. "Under Armour? wanted to integrate innovation, technology and design in the process of designing casual and sportswear. This report is to throw more light on how the brand deals with all its financial aspects and also to analyze the financial situation of Under Armour in 2006 fiscal year.
[...] Two kinds of shares: - Under Armour's Class A Common Stock. These shares are traded on the NASDAQ National Market record holders own Class A Common Stock. - Under Armour's Class B Convertible Common Stock record holders owned a Class B convertible Common Stock. (Among them are the President and Chief Executive Officer, Kevin A. Plank). The Share of the dividend - The cash share: On December Under Armour declared a cash dividend of $ 5.0 million, which was paid in January 2005 to its common stockholders. [...]
[...] Positioning Under Armour seems to be positioning as a leader on the international market of sports outfits. Concerning the targeted market, Under Armour mainly focuses on professional clients: people that practice sports everyday and train a lot. The brand wants to provide those who need quality in order to be efficient and those who are ready to pay for those types of outfits. Using high technology during the manufacturing process of each item, the brand can position on a market pricing. [...]
[...] It is the typical American company. With large portion of stockholders' equity, the company has more flexibility and time to run the business. The additional paid-in capital increased from $ 124.803 million to $ 148.562 million, which took the most percentage. As the company is very dynamic, it needs more resources for investment. Meanwhile, the strong development of the company makes the investors trust more and be willing to invest more capital . The retained earnings increased sharply from $ 28.067 million to $ 66.376 million. [...]
[...] The account receivable's growth is much more sharp. It goes up from $ 53.132 million to $ 71.867 million. With the 35% in increase, we can also find an increase of 53% in net sales. From the report, we see that the UA built a further business relationship with the National Football League and also became the official outfitter of southeastern conference powerhouse Auburn University. Both undertook the credit business, which means Business to Business, that can cause a huge increase of account receivable. [...]
[...] Competitors The three main competitors of Under Armour are Adidas, Columbia Sportswear and Nike. The company has to face high level competitors which have been on the market for many years and are better known than Under Armour. Swot Strengh -Leader on its market, regarding the turn over - High, unique and innovative technology clothes -Relationship with customers, mainly from the sports environment (Relationship with professional athletes) -Knowledge of the demand of the customers. - Worldwide presence in professional realm Opportunities - More and more athletes and teams choose their outfits in terms of the efficiency it can bring them Weaknesses - The relative newness of the brand - A costumer not yet loyal - Focus on too specific demand Threats -Presence of famous and recognized competitors -Leaders of sports clothing like Adidas or Nike are doing more to please their customers, especially athletes. [...]
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