So what's the downside to Under Armour's dominance of the performance apparel market? Most dealers say there isn't one. Several said they have faced availability issues on some merchandise. But, says Adam Turner, of Babbitt's, "the crazy thing is that sometimes having to wait makes these folks want it
even more."
He and others, however, do offer cautions to Under Armour and the dealers who sell it. "Keep it fresh and keep the price point from getting out of the range of what people can afford," advises Kevin Harvey, of Burke's Sports. "And keep advertising!"
Turner too suggested that Under Armour keep things fresh, but within limits. "I really hope they don't expand too far," says Turner. "The reason they're so good is they take one idea and revolutionize the industry and make that idea the best that it can be. You can only do that well in so many areas, though I'll have to say that our other stores are doing well with their apparel that's suited for skiers, runners and hikers."
Jon Damren, of Stateline Sports, says dealers who carry the product should also be careful not to overextend. "Whenever you're expanding with a line, you run the risk that the new items you bring in won't have the same impact as previous item," he warns. "You need to listen less to the hype and pay more attention to what relates to the schools you're dealing with, from the products to the colors that become available."
Stateline, for example, expanded heavily into the women's Under Armour a year ago to strong results. Fifteen percent of its overall retail business is in ladies. Hogan's plans to add ladies in the year ahead.
Damren also advised dealers to keep their inventory levels up and give the product prime placement in the store. "I think just about anyone could do OK with it, but it's only going to be great if you make it that way," he says.