Boston, MA 09/09/2014 (wallstreetpr) – “Impossible Is Nothing” might be the slogan of sports brand Adidas AG (ADR) (OTCMKTS:ADDYY), but Under Armour Inc (NYSE:UA) has actually proven the line by surpassing the former this year after reporting a substantial gain in its combined apparel and footwear sales. The development has positioned the sports retailer in second position, tossing Adidas away to the third.
Shadowed Adidas
Baltimore based Under Armour Inc (NYSE:UA) reported sales of $1.2 billion for the period ended on August, as against $1.1 billion sales recorded by Adidas. The two companies have witnessed opposing sales behaviour as Under Armour saw 20 per cent rise in its sales while Adidas was bashed by a drop of 23 per cent. At the same time, Nike maintained its top position this year as well, reporting a combined sales of $8.9 billion this year. An analyst from Sterne Agee disclosed that Under Armour has been aggressively preying for market share of Adidas and Nike and has come to achieve success this year. The analyst added that both Nike and Under Armour have been cautious about their market share, but Adidas lacked the same urgency, which is now reflecting in the results.
The vision of the company is constantly reflected in various statements of CEO and founder Kevin Plank, who had stated repeatedly stated the company’s goal of establishing as the renowned brand globally. Recently, Under Armour has roped in Brazilian supermodel Gisele Bundchen and skier Lindsey Vonn to be part of its $15 million ad campaign.
Cramer Is A Fan
Under Armour Inc (NYSE:UA) has also found one of its fab in Cramer, who is highly optimisitic about the company. He said that it would be a good idea for investors to buy the stock at its dips. As of now, Cramer regard the price of Under Armour among expensive stocks. It trades with high multiple and high growth and could be compared with the likes of cloud, e-commerce or biotech stock. However, Cramer is confident that the company has more to achieve and will continue to deliver its remarkable performance.
