Hot Growth Special Report 2006 >



Under Armour (UARM)

Eleven years ago, college football player Kevin Plank got tired of changing the heavy, sweaty cotton T-shirts under his jersey. He devised a skin-tight synthetic shirt that wicked away sweat -- and tapped into a deep unmet need among athletes. Now, Under Armour is the king of the "compression" athletic apparel market, reaching all the way down to the elementary-school playground, where its $20-$40 T-shirts and turtlenecks are must-have items. Meanwhile, CEO Plank has branched out to offer everything from gloves to duffel bags. That has helped send sales soaring 56% a year since 2002, to $271.3 million in 2005. Earnings have skyrocketed 85.2% a year in that time. And when Under Armour went public on Nov. 18, 2005, giddy investors pushed shares from $13 to $31. Competition from the likes of Nike is likely to cause Under Armour's torrid revenue growth to moderate, though analysts still expect it to chart an impressive 20% annual growth per year going forward.

Company Info

2005 Rank


Market Value*
($ Millions)


($ Millions)


Sales Growth
(3-yr. avg. annual)

78.3 %

($ Millions)


Profit Growth
(3-yr. avg. annual)

100.1 %

Return on Inv. Capital (3-yr.)

32.3 %

Share Price
12-Mo. Hi/Lo


Share Price
As of 4/28/06


Return on Equity

13.2 %

P/E Ratio


No. of Employees


Industry Apparel, Accessories & Luxury Goods


Location Baltimore
Phone 410 454-6428
*Trailing 12 months
Stock price data as of 4/28/06
DATA: Standard & Poor's Compustat

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Company Snapshot

Under Armour engages in the development, marketing, and distribution of branded performance products for men, women, and youth worldwide. The company markets and sells a range of apparel and accessories for use in athletics and outdoor activities, as well as casual apparel. The company markets its products as gearlines, which primarily include HeatGear, which is designed to be worn in warm to hot temperatures under equipment or as a single layer; ColdGear that is designed to wick moisture from the body while circulating body heat from hotspots to maintain core body temperature; and AllSeasonGear, which is designed to be worn in changing temperatures. The company sells its products primarily through smaller, independent, and specialty retailers. It also sells its products directly to athletes and other users through its sports marketing group and to consumers through four retail outlet stores in the U.S., as well as through its Web site. UAI was founded by Kevin Plank in 1995. It was formerly known as KP Sports, and changed its name to Under Armour in March, 2005. UAI is headquartered in Baltimore.

Data provided by Capital IQ
Kevin A. Plank

Kevin A. Plank, 33

Chairman, Chief Executive Officer and President

Total Compensation*

$ 1,527,253

Total Options Value*

$ 0

* Fiscal Year 2005

Executive Bio

Kevin Plank has been chairman, chief executive, and president of Under Armour since 1995. He was named the Small Business Administration's 2001 Young Entrepreneur of the Year for the State of Maryland and the mid-Atlantic region. Among other accolades, Sporting Goods Business named Under Armour the Apparel Supplier of the Year for 2001, and the Sports Authority, the largest full-line sporting goods retailer in the country, recognized Under Armour as the best soft line launch that year.

Management Team

Key Executives

Kevin A. Plank; Wayne A. Marino; Stephen J. Battista; Ryan S. Wood; J. Scott Plank; Raphael J. Peck; Matthew C. Mirchin; Joseph D. Giles; William J. Kraus; Kip J. Fulks; Michael F. Fafaul; Kevin Haley

Board Directors

Thomas J. Sippel; Harvey L. Sanders; William R. McDermott; A. B. Krongard; Douglas E. Coltharp; Byron K. Adams; Kevin A. Plank

Executive Data provided by Capital IQ