Forget the Yankees and Red Sox; the biggest rivalry in sports right now is between Nike (NKE) and Under Armour (UA).
Under Armour CEO Kevin told Bloomberg reporters, Do I take pleasure in that they [Nike] paid $150 million more than they planned on paying? Absolutely.
Plank reportedly refuses to even say the word 'Nike' and recently opened an Under Armour office in Portland, Oregon just a skip away from Nike headquarters.
According to a Sterne Agee report, Under Armour has also grabbed Adidas spot as the second-largest sporting brand in the United States. But despite this new rank and a predicted revenue growth of 20% each year for the next five, Under Armour finds its total annual revenue to be the equivalent of Nikes advertising budget.
Nike is a data, technology, biotech and distribution business, says StockTwits co-founder Howard Lindzon. Under Armour has snuck up and become much of the same through creative advertising and the use of technology to bring down the price of their goods. Lindzon owns Nike but does not own Under Armour stock.
But is there room for both Nike and Under Armour in the sporting goods market?
Absolutley, says Lindzon. And while its unlikely that Under Armour will surpass Nike in size anytime soon, the company does serve to keep Nike honest, and it keeps them focused, he says.
cosign would've been great for competition, business, advancement in products, competitive pricing ... ultimately the consumer would be winning. competition breeds excellence in all forms. makes everyone better.