Nick DePaula of Yahoo’s The Vertical recently reported on how missing out on KD helped build the Under Armour empire. The article references Durant’s injury plagued 2014-2015 season and the negative impact it would’ve had on the brand financials as well as the emergence of the back to back NBA MVP Steph Curry as the major factors in Under Armour’s success.
The 18 months that unfolded from summer 2014 to now could not have gone any better for Under Armour. After Nike matched UA’s offer to KD, the brand doubled down on Curry and the rest is history. In that same 18 month span brand revenue has risen to $5B, due in large part to the popularity and appeal of Curry with the youth market. And, for the first time in a while UA is outpacing Nike in terms of percentage increase on stock price. Now, when you own the market as Nike does, stock prices don’t rise as astronomically as younger brands trying to eat into your market share.
Is NIKE worried? Will UA ever overtake NIKE? I doubt it. NIKE is the best “marketing company” in the world, along with Apple. The brand loyalty and equity is unmatched in the sector. The question is, how will UA use the “Cult of Steph Curry” to add to its roster of future stars and continue to build the brand appeal among the youth?