In an interview with Jim Cramer the host of Mad Money on CNBC, Under Armour Inc.’s (NYSE: UAA) CEO said that the sportswear company was now focused on growing its North American footprint. This is despite the fact that the American company has expanded its global presence significantly as part of a 3-year transformation strategy, which has been quite successful.
Under Armour’s CEO, Kevin Plank said that the company could not afford to neglect its core North American market, which generates about 70% of the company’s sales. However, this is a market with stiff competition from other players such as Nike and Adidas, which is why the company has opened an ultra-modern distribution center in Maryland.
The new center will allow it to dispatch customer orders from the U.S within two hours of the order being received, which is a major competitive advantage. Therefore, the main reason why the firm is now focused on growing its US market share is because it is too important a market to be ignored.