On Oct. 23, Under Armour will launch a campaign meant to garner attention in footwear, and more specifically, basketball shoes; a segment wrought with instability and little market share potential based on Nike’s 90% ownership in the basketball footwear category. In an interview with Bloomberg, and contrary to the company’s usual goal of achieving market dominance, Under Armour CEO, Kevin Plank reiterated the company’s near-term goal of becoming the number two athletic company behind Nike over the next few years.
“We wouldn't enter any category unless we could someday be No. 1,” Plank added on the launch into basketball. “There is one company with three brands that controls 90-plus percent of the basketball business. So when you ask me, is basketball as a category, is it growing, is it shrinking? I wouldn't be able to tell you one way or another, and frankly I don't think it would matter. Because when Under Armour does introduce basketball footwear, it is a relatively good opportunity for us and we will take significant market share.”
According to the article, Under Armour's apparel segment represented 76% of the company’s $856.1 million in revenues, while their footwear paled in comparison at 16% of the total.
In other company news, Plank said that Under Armour will also be opening the company’s first store in China by the end of the year. The addition will accompany Under Armour’s 53 projected retail outlets in the U.S. by the end of the year.
