Under Armour revealed plans to start selling to Kohl’s starting in 2017 as well as open a mega-store in the famed FAO Schwarz flagship on New York City’s Fifth Avenue as early as 2018.
On its second-quarter conference call with analysts, Kevin Plank, chairman and CEO, described Kohl’s as “one of the top retailers of activewear in the U.S.” with a “large loyal consumer base,” mainly consisting of women.
“This decision to reach new consumers through Kohl’s is not a channel consideration but a consumer consideration,” said Plank. “We want to reach our consumer where they expect to find Under Armour products and we will continue to partner with retailers that provide us the opportunity to showcase the Under Armour brand.”
The brand will initially launch at 600 Kohl’s stores before expanding to all 1,100 locations. Overall, the decision to start selling to Kohl’s was part of a strategic push to reach a wider range of customers across three areas: channels, categories and geographies.
“We have built our business over the past 20 years through great retail partnerships within the sporting good channel with partners like Dick’s Sporting Goods and Academy,” said Plank. “And in department stores and malls like partners like Macy’s, Foot Locker, Champs and Finish Line. The authenticity we’ve gained with consumers through those partnerships has helped us become we are today and positioned us to bring Under Armour to an even broader set of consumers.”
Also as part of the channel push, Under Armour revealed plans to move into the former FAO Schwarz space on Fifth Avenue in New York City as soon as 2018. The store, known for being featured in the Tom Hanks film “Big,” closed in July 2015. It had been the oldest toy store in the U.S., with a New York City location since 1870.
Plank said it’s part of the firm’s strategy to use “landmark retail space” to tell the Under Armour story and build its brand and sales. He added, “The approximately 53,000 square foot space is one of the most recognized and high traffic areas in all of New York and our plan is to build the most breathtaking and exciting consumer experience ever conceived at retail.”
The move to Kohl’s is an effort for the brand to compensate for the catastrophe of Sports Authority, which brought down Q2 earnings by 58 percent, despite improved revenues of 28 percent.
