• by Sarah Mahoney , July 3, 2008

Intensifying its battle plan against competitors like Nike and Adidas, Under Armour is expanding its corporate structure, and has hired David McCreight as the company's president. McCreight, who will report directly to Under Armour chairman and CEO Kevin Plank, the University of Maryland football player who founded the company, has been the president of Lands' End, a division of Sears Holding Corp.

 

 

The move comes at a time of rapid growth for the Baltimore-based Under Armour. In addition to its aggressive step into footwear, it's tiptoeing into the retail world as well. And observers say its mission-- to become the world's No. 1 performance athletic brand-is sounding less grandiose all the time.

"Nike started out selling one shoe out of the back of a car," says Brady Lemos, an analyst who follows the company for Morningstar, based in Chicago. "And Under Armour has grown faster than Nike ever did. The U.S. market needs a No. 2 player, in terms of both consumer and wholesaler demand. While Reebok was that, it's been having issues after being acquired by Adidas."

In its most recent quarter, Under Armour revenues jumped 26.6% to $157.3 million, with apparel sales gaining 24.6%, and women's apparel climbing 35.9%. And the company has big plans for footwear, which it describes as the company's "second chapter." Earlier this spring, it introduced cross-trainers, its first line on non-cleated performances shoes, and a new running shoe is said to be ready to launch in 2009.

And earlier this spring, the company opened its second full-line store-a 6,000-square-foot unit in Aurora, Ill. (The first debuted in Annapolis, Md., late last year.) One more store is planned for this year, and the company has said it will "continue to evaluate expanding its branded retail business, as the brand continues to grow." While at Sears, McCreight, 45, oversaw the expansion of Lands' End stores within Sears; he has also been an SVP at Disney Stores Worldwide, and president of Smith & Hawken. "I liked what I saw when I visited the new Under Armour store," Lemos says. "It was packed, and the demographics were broad-shoppers were young and old and male and female." Still, he adds, the upcoming back-to-school season may be very tough on such brands. "It's been a long time coming, it's but the slowdown in discretionary spending is finally starting to hit the teen segment. This fall is going to be pretty challenging."