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Under Armour: New Focus On Basketball And Women To Boost Sales And Justify Valuation

By Chris Katje:

Under Armour (NYSE:UA) has been in the news a lot during the month of August. The sports apparel retailer launched a large global campaign aimed at women and also has its eyes set on its largest marketing deal ever. A targeted approach at women and the possible signing of NBA superstar Kevin Durant will have a huge impact on short and long term growth and could finally justify the high valuation Under Armour shares command.

Under Armour is close to signing a huge endorsement deal with NBA superstar Kevin Durant, of the Oklahoma City Thunder. The deal on the table is said to be in the range of $265 to $285 million over ten years. This annual figure of $26.5 to $28.5 million would represent around 10% of Under Armour’s current marketing budget.

Back in 2007, Nike (NYSE:NKE) signed Durant to his first NBA deal worth $60 million for seven

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