Under Armour is making a big expansion in a new category
The athletic wear company is going to be expanding into fashion sportswear with a new collection, Bloomberg reports.
The line is called Under Armour Sportswear (UAS), and the company says it's going to be preppy and fashion-forward. It launches in the fall.It's also expensive, with a pair of jogging pants going for $395. The brand has tapped Tim Coppens, formerly of Ralph Lauren and Adidas, to be the executive creative director of this new collection.
"The brand can't live up to its fullest expression of itself without capturing this element and this opportunity in the market," Under Armour's Senior Vice President of sportswear, Ben Pruess, said to Bloomberg. "It also affords us the opportunity to reach a new consumer."
That consumer is arguably the same one who shops at high-end athletic apparel companies like Tory Burch Sport, or someone who shops at high-end department stores. It helps to set it apart from other companies, which helps, given how many apparel companies - from Victoria's Secret to Dick's Sporting Goods - are cashing in on the category.
Additionally, Under Armour has been hungry to cash in on other growth opportunities. The company has reported quarter after quarter of exceptional growth. In January, CEO Kevin Plank revealed that it plans to grow its women's business by doubling it. Should the company double its women's sector, it would be able to trump athleisure stalwart Lululemon.
Under Armour has been working to appeal to both men and women by using top notch stars, such as basketball star Steph Curry, star ballerina Misty Copeland, and supermodel Gisele Bundchen.
However, despite Under Armour's growth, it still has a long way to go before it catches up to the leader in the industry, Nike. Even despite Steph Curry's impressive contribution to sneaker sells, the company sells significantly less sneakers online than Nike does.Under Armour's net revenue for fiscal 2015 was $3.96 billion - a small fraction of $30.6 billion Nike's total total revenue for fiscal 2015.