Under Armor: How Stephen Curry Helped Sell Shoes

Under Armour (NYSE:UA) finished off FY 2015 in great style, accomplishing substantial growth figures all across the board, with footwear leading the charge. The company’s footwear segment grew a significant 57% year over year in 2015, while increasing revenues at a rate of 95% in the final quarter. But what has driven such extraordinary growth rates in such a short time? The short answer is, the athletic wear giant’s association with Stephen Curry. To give some context, Curry is a three time NBA All Star and was named the Most Valuable Player (MVP) of the year in 2015. ^[1]

The Stephen Curry signature basketball shoes have sold extremely well since the line’s launch about a year ago, propelling footwear sales to reach way beyond expectations. Making Curry a UA Ambassador has clearly benefitted the company. But he isn’t the only Brand Ambassador that is making headlines. The company has many other MVPs that sport the Under Armor logo.

Just recently, Cam Newton of the Carolina Panther’s was awarded the Most Valuable Player award. To commemorate this, the company provided the athlete with golden boots to wear during pre-game warm ups. It has also decided to sell a limited number of these golden cleats with a price tag of about $500. Each pair will be autographed and half of the proceeds will be donated to The Cam Newton Foundation, which aids in youths’ education and development. ^[2] Newton joins other MVPs like Bryce Harper (the Washington National’s outfielder) and Carey Price (the Canadien’s goaltender) that endorse Under Armor. Furthermore, other star athletes like tennis player Andy Murray and golfer Jordan Spieth are also associated with the brand as ambassadors.

This is a marketing strategy that seems to be working very well for the company. It not only helps build awareness and curiosity, but also aids in increasing sales to a large extent owing to the athlete’s fan base. This can be seen by the marked change in footwear sales ever since the company signed on Stephen Curry and launched the Curry One and Curry Two.

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Stephen Curry is the reigning MVP in the NBA. He has an extraordinary record on the court and is a common household name in the U.S. now. His achievements are well documented and applauded by many. He is the classic example of an underdog. He doesn’t match up to his counterparts on the court in terms of strength and height, but the way he shoots and handles the ball is inspiration to many. Under Armor signed the basketball phenomenon in 2013 for a span of about 2 years. In September last year, the company managed to extend the deal to 2024. According to Curry’s agent, Jeff Austin, there is an almost “natural fit” between Curry and Under Armor, owing to their underdog backgrounds. ^[3]

Under Armor had started off as just an athletic apparel manufacturer. However, in 2006, the company decided to enter the footwear space in an attempt to diversify the products they offer. Things didn’t go very well initially. UA couldn’t compete with already established footwear brands like Nike and Adidas. That trend has since changed and 2015 is testament to this fact. Kevin Plank (founder and CEO) has already declared that he wishes to create a $1 billion basketball brand around Stephen Curry.

The company is set for big things. According to analysts from Morgan Stanley, UA is on pace to reach revenues of a mammoth $20 billion by 2025 and the company is certain that such growth will not be possible without the UA Ambassadors that have helped increase sales in the recent past significantly. What actually transpires, only time will tell.

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1. Under Armor’s Q4 2015 Earnings Call Transcript, www.seekingalpha.com [↩]
2. Cam Newton Sported Golden Cleats at Super Bowl Pregame, www.baltimoresun.com [↩]
3. Stephen Curry’s Brand Growing at the Same Unprecedented Rate as his Game, www.si.com [↩]