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Under Armour Signs Multi-Year Deal with Southampton FC

Under Armour, Inc. UA has inked a sponsorship deal with Southampton FC or “the Saints”, thereby further strengthening its position in the U.K. market. Southampton FC will kick off the 2016–2017 season of the English Premier League (EPL) wearing match kits designed by the company. Notably, Southampton FC is the second club after Tottenham Hotspur FC to have signed a deal with Under Armour. In Mar 2011, Under Armour signed a five-year deal with Tottenham Hotspur FC for match kits for the 2012–2013 EPL season.

Southampton FC, which currently holds the 7th place in the EPL league, has signed a seven-year deal with the company. However, the financial terms of the deal have been kept under wraps.

Recently, Under Armour also signed a deal with North American Soccer League (“NASL”) team – New York Cosmos. Interestingly, Brazilian football legend Pele played for the New York Cosmos team in the season 1975–1977 and scored 31 goals.

Under Armour also designs match kits of clubs like São Paulo FC in Brazil, Cruz Azul in Mexico and Colo-Colo in Chile.

Under Armour continues to seek opportunities to increase its global footprint and market share. Though the company generates a major portion of its revenues from the North American region, it intends to expand business operations to other parts of the world to mitigate the risks stemming from geographic concentration. In keeping with its strategy, the company has opened its factory and brand stores in Canada and China as well as given franchise licenses in many countries over the years.

Zacks Rank and Other Stocks to Consider

Under Armour, which shares space with NIKE, Inc. NKE, currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the sector include Columbia Sportswear Company COLM and Delta Apparel Inc. DLA. Columbia Sportswear sports a Zacks Rank #1 (Strong Buy), whereas Delta Apparel holds a Zacks Rank #2 (Buy).

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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
NIKE INC-B (NKE): Free Stock Analysis Report
UNDER ARMOUR-A (UA): Free Stock Analysis Report
COLUMBIA SPORTS (COLM): Free Stock Analysis Report
DELTA APPAREL (DLA): Free Stock Analysis Report
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