Analysts with investment research firm Baird see a partnership between Under Armour and Kohl's that is set to roll out in the spring as a "positive for both parties," according to Ben Levisohn of BARRON's. The Baird analysts said the partnership will "effectively allow Under Armour to better serve a large potential customer base (especially women and kids) with a differentiated product assortment." The analysts noted Kohl’s "appears excited about the Under Armour potential." Kohl's has characterized the rollout as the "biggest brand launch in the company’s history," and "understandably so when considering the meaningful contribution from Nike," which is Kohl’s No. 1 national branded partner, with retail sales possibly near $800M. Kohl’s is making a "major commitment to investing in store fixtures" -- around $50M -- in an effort to "create a strong brand presence, and will expand the share of shelf for total athletic in the store with Under Armour product featured across men’s, women’s, kid’s, footwear, and home categories." The analysts also believe UA currently is Kohl’s "top-searched-for brand online not currently carried." The analysts said a "relationship at Kohl’s over time" could suggest a $500-600M "opportunity for annual retail sales for Under Armour within Kohl's" (BARRONS.com, 9/23). UA Founder, Chair & CEO Kevin Plank said, "It's a proactive move. Kohl's is a great evolution for us. ... We believe there's a massive opportunity with the consumer walking into those stores and looking for the Under Armour brand and haven't been able to find it" (BALTIMORESUN.com, 9/23).
