Under Armour - Competitors

Under Armour Competition

Now Viewing Under Armour's competition in: Apparel Manufacture

Recent Developments

Weak US Back-to-School Sales Expected - Apparel manufacturers hoping for a sales boost from the annual back-to-school shopping season may end up disappointed due to US economic weakness, rising prices, and tight credit markets. Total US same-store retail sales are expected to have risen just 1.6 percent in August 2008 compared to the same period in 2007, according to RetailMetrics. JCPenney says that preliminary figures show a 4.9 percent decline in same-store sales during August. Wal-Mart, the world's largest retailer, beat analyst expectations with a 3 percent increase in same-store sales.

Dispute Ends International Trade Talks - International trade talks that may have affected apparel manufacturers by removing trade barriers broke down in July 2008. The so-called "Doha" round of trade talks, launched in 2001, broke down after the US, China, and India failed to resolve a dispute over a proposed system to protect farmers in developing nations from a surge of food exports from richer countries. Some officials say that the talks may resume in late 2008; others argue that the upcoming US presidential election will freeze talks for at least a year.

High Textile, Apparel Tariffs Reduce Trade - Lower tariffs are associated with increased international trade, according to the World Bank, but high textile and apparel tariffs throughout the world reduce trade in those industries. Developed countries generally have lower tariff rates than developing countries, but textile and apparel tariffs are an exception. US apparel manufacturers may be benefiting from the higher tariffs because apparel exporting countries have relatively less favorable access to US markets.

Competitive Landscape

Demand is largely determined by consumer tastes and the comparative costs of manufacture in the US and overseas. The profitability of individual companies depends on operation efficiency and the ability to secure contracts with clothing marketers. Small companies can compete effectively with large ones by specializing in a particular type of apparel manufacture. There are few economies of scale in manufacture, because of the high labor content of most apparel. The industry is labor-intensive: average annual revenue per production worker is about $125,000.

Full Industry Overview For Apparel Manufacture

Apparel Manufacture Industry Forecast

from Hoover's/D&B subsidiary First Research

The output of US apparel manufacturing, including knit and sewn apparel and accessories, is forecast to grow at an annual compounded rate of -0.4 percent between 2008 and 2013.

Apparel Manufacturing Growth Weak

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.