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SBD/February 18, 2013/Marketing and Sponsorship
Under Armour Opens Brand House Store In Baltimore, Seeking To Appeal To Women
Published February 18, 2013
GETTING READY FOR A BATTLE: CNBC's Maria Bartiromo reported the opening of the store shows that UA execs are "making a renewed push into retail and perhaps taking their battle with Nike to a new level.” CNBC’s Brian Shactman was on-site at the new Baltimore UA store, noting the company is using the store as a “test lab, focusing on women, focusing on shoes and maybe even setting themselves up for international expansion." KKM Financial Founder & CEO Jeff Kilburg said UA is “really hitting the nail on the head with this ‘I Will’ campaign they just launched." Kilburg noted, “Look at the overseas expansion, only 6% of sales come in from overseas. They’re going to grow.” The Seaport Group Equity Strategist Abigail Doolittle said UA has "actually started to reverse its three-year uptrend” which indicates the “buyers are becoming less enthusiastic.” But Doolittle said “When I look at Nike, I see a beautiful uptrend” (“Closing Bell,” CNBC, 2/15).
HOMETOWN DEAL: In Portland, Allan Brettman wrote over the past two decades, Nike built its Oregon HQs "with no financial incentives from Washington County,” but “times appear to be changing.” Ongoing talks between the company, Washington County, Portland and state officials “that began in the middle of last year involve plenty of incentives.” The talks so far have “resulted in Oregon assuring Nike it would be taxed only [on] its sales within the state for the next 30 years.” Portland city officials also “expanded the city's eastside enterprise zone to include property on the west side of the Willamette River in a way that would accommodate a possible Nike construction site.” And Beaverton is “seeking to expand an enterprise zone boundary to include Nike's existing headquarters as well as a company-owned parcel believed to be a possible expansion site.” Nike’s expansion in Oregon will -- as “required under the agreement with the state" -- be valued at a minimum of $150M and must "be completed by 2016 and result in at least 500 full-time jobs” (Portland OREGONIAN, 2/16).