When will Under Armour fully immersed itself in golf?

I purchased an Under Armour "Links" Stand Bag a few years ago, it was a great product that provided lots of storage including space for two beverage containers. Too bad it was discontinued. Now their producing golf apparel on a serious level and it's really good looking stuff, I've even heard rumors of a prototype golf shoe, (can't wait to see those) they already make shoes for other sports and are well respected

What I'm wondering now is when will they enter the actual golf equipment market cause that seems to be where they are headed. As we've seen over the years when Under Armour jumps into something, they seriously intend to take that particular market over (Backpacks, carry on's & S.W.A.T. Stuff). Do you think that they'll do it themselves, buy someone out, or take someone over? Would you try their stuff out? Finally - when do you think they'll begin their assault on the equipment industry, 2015 or 2016?

UA is always in the rumor mill as the company that may buy Callaway. If UA was smart, they should buy Callaeay sooner than later. Golf and revenue associated with it has been down for a while. It is only a matter of time before things start to turn around.

[quote name='Goldenhawk' timestamp='1406770039' post='9821111']
UA is always in the rumor mill as the company that may buy Callaway. If UA was smart, they should buy Callaeay sooner than later. Golf and revenue associated with it has been down for a while. It is only a matter of time before things start to turn around.
[/quote]

This is very optimistic at best. Imagine yourself as a CEO proposing to not just the board, but stockhders to but a company that doesn't have a sustainable business model, and is in a contracting industry.

More like they should buy the new Hogan company. Doubt they have the money to buy Callaway bargin or not...They sure haven't got anybody that could run a equipment company...

[quote name='rbhan12' timestamp='1406770244' post='9821131']
[quote name='Goldenhawk' timestamp='1406770039' post='9821111']
UA is always in the rumor mill as the company that may buy Callaway. If UA was smart, they should buy Callaeay sooner than later. Golf and revenue associated with it has been down for a while. It is only a matter of time before things start to turn around.
[/quote]

This is very optimistic at best. Imagine yourself as a CEO proposing to not just the board, but stockhders to but a company that doesn't have a sustainable business model, and is in a contracting industry.
[/quote]

Yeah, probably not a good move. I think they will stick to the apparel and accessories game. I don't think you'll see equipment from them other than the balls they make now.

If they buy a club company, it should be a small one. Something they wouldn't have to pay an arm and a leg for, then they could use their marketing to grow it. Tour Edge/Exotics would seem to be a perfect choice. I'd rather try to grow something than maintain a monster like Callaway.

It would be fantastic... That being said, it doesn't make a ton of sense. They are in their element when it comes to apparal. The shoes (spieth and woodland I believe) look good. But to go toe to toe with the likes of nike and taylormade, and put titleist and ping on top of that.... I don't think this industry is in the place to support 4 major clothing/equipment manufacturers AND equipment only companies.

I think they have places to grow. Ping, mizuno and titleist guys are all open to clothing choices. Look at zach, bubba, luke and many other big name guys that CAN be branded. They did a good job with hunter mahan.

I think they should really try and become an unofficial clothing line for some of these companies. Ping is a great option (all about engineering and their players tend to show well), titleist is a bit tougher (seems synonymous with footjoy) mizuno isn't bad but not a big enough grasp on the pga tour (I can only think of crane and Donald) but callaway is great (think about ryo wearing ua gear and his status in the Asian markets).

I guess it's a stick to your competences. They do GREAT clothing and shoe lines. As sun tzu said "fight them where they aren't".

[quote name='Rhythm&TempoRenzo' timestamp='1406769524' post='9821039']
I purchased an Under Armour "Links" Stand Bag a few years ago, it was a great product that provided lots of storage including space for two beverage containers. Too bad it was discontinued. Now their producing golf apparel on a serious level and it's really good looking stuff, I've even heard rumors of a prototype golf shoe, (can't wait to see those) they already make shoes for other sports and are well respected What I'm wondering now is when will they enter the actual golf equipment market cause that seems to be where they are headed. As we've seen over the years when Under Armour jumps into something, they seriously intend to take that particular market over (Backpacks, carry on's & S.W.A.T. Stuff). Do you think that they'll do it themselves, buy someone out, or take someone over? Would you try their stuff out? Finally - when do you think they'll begin their assault on the equipment industry, 2015 or 2016?
[/quote]


The golf shoe expected in 2015. their Jordan's

[quote name='no where to look' timestamp='1406771969' post='9821347']
[quote name='Rhythm&TempoRenzo' timestamp='1406769524' post='9821039']
I purchased an Under Armour "Links" Stand Bag a few years ago, it was a great product that provided lots of storage including space for two beverage containers. Too bad it was discontinued. Now their producing golf apparel on a serious level and it's really good looking stuff, I've even heard rumors of a prototype golf shoe, (can't wait to see those) they already make shoes for other sports and are well respected What I'm wondering now is when will they enter the actual golf equipment market cause that seems to be where they are headed. As we've seen over the years when Under Armour jumps into something, they seriously intend to take that particular market over (Backpacks, carry on's & S.W.A.T. Stuff). Do you think that they'll do it themselves, buy someone out, or take someone over? Would you try their stuff out? Finally - when do you think they'll begin their assault on the equipment industry, 2015 or 2016?
[/quote]

That golf shoe looks really good. It will be a big seller for UA.

The golf shoe expected in 2015.
[/quote]

[quote name='TheMoneyShot' timestamp='1406772054' post='9821359']
[quote name='no where to look' timestamp='1406771969' post='9821347']
[quote name='Rhythm&TempoRenzo' timestamp='1406769524' post='9821039']
I purchased an Under Armour "Links" Stand Bag a few years ago, it was a great product that provided lots of storage including space for two beverage containers. Too bad it was discontinued. Now their producing golf apparel on a serious level and it's really good looking stuff, I've even heard rumors of a prototype golf shoe, (can't wait to see those) they already make shoes for other sports and are well respected What I'm wondering now is when will they enter the actual golf equipment market cause that seems to be where they are headed. As we've seen over the years when Under Armour jumps into something, they seriously intend to take that particular market over (Backpacks, carry on's & S.W.A.T. Stuff). Do you think that they'll do it themselves, buy someone out, or take someone over? Would you try their stuff out? Finally - when do you think they'll begin their assault on the equipment industry, 2015 or 2016?
[/quote]

That golf shoe looks really good. It will be a big seller for UA.

The golf shoe expected in 2015.
[/quote]
[/quote]

That shoe looks hot, low to the ground and probably something that I might possibly wear...

First, those shoes look like football cleats with CHAMP Zarma spikes. I like UA apparel but have never been impressed with their footwear.

Second, UA entering into the equipment market would be a terrible idea. The industry as a whole has been in decline and the equipment market is extremely saturated. Any notable acquisition or new development to enter the equipment market (not to mention sustain) would require a tremendous investment that they may never see a return on.

[quote name='Ivyguy' timestamp='1406771274' post='9821245']
It would be fantastic... That being said, it doesn't make a ton of sense. They are in their element when it comes to apparal. The shoes (spieth and woodland I believe) look good. But to go toe to toe with the likes of nike and taylormade, and put titleist and ping on top of that.... I don't think this industry is in the place to support 4 major clothing/equipment manufacturers AND equipment only companies.

I think they have places to grow. Ping, mizuno and titleist guys are all open to clothing choices. Look at zach, bubba, luke and many other big name guys that CAN be branded. They did a good job with hunter mahan.

I think they should really try and become an unofficial clothing line for some of these companies. Ping is a great option (all about engineering and their players tend to show well), titleist is a bit tougher (seems synonymous with footjoy) mizuno isn't bad but not a big enough grasp on the pga tour (I can only think of crane and Donald) but callaway is great (think about ryo wearing ua gear and his status in the Asian markets).

I guess it's a stick to your competences. They do GREAT clothing and shoe lines. As sun tzu said "fight them where they aren't".
[/quote]
I'm with you
UA should stick to their business and not insert their nose in businesses that don't add value. Callaway doesn't make money, they have a brand and a name but not the $$$.
Nike got into the golf club business because they had the #1 player for more than 8 years but in reality I don't think they make money in golf. After Tiger and Rory's contract there's not much left, that's why their results are included in "overall financial results" and not report as a separate entity.
I think that the same applies to TMAG, they are part of Salomon and Adidas owns everything.

The market for golf equipment is saturated and golf is not growing in the US

UA is immersed in golf apparel. 21yearoldJordanSpieth has been wearing their golf shoes since the first of the year.

Why not join forces with Titleist? They already have a great star with spieth and Adam Scott would look great with UA apparel. Two companies that produce quality products.

I wouldn't mind seeing them join with PING or SRI (Srixon/Cleveland) as they make some apparel but are not known as an apparel company.

[quote name='schneidm10' timestamp='1406778231' post='9822103']
Why not join forces with Titleist? They already have a great star with spieth and Adam Scott would look great with UA apparel. Two companies that produce quality products.
[/quote]

Acushnet which owns the titleist brand is now owned by Fila Korea a fellow competitor.

[quote name='easylittle5wood' timestamp='1406780207' post='9822289']
[quote name='schneidm10' timestamp='1406778231' post='9822103']
Why not join forces with Titleist? They already have a great star with spieth and Adam Scott would look great with UA apparel. Two companies that produce quality products.
[/quote]

Acushnet which owns the titleist brand is now owned by Fila Korea a fellow competitor.
[/quote] Who also owns footjoy, another competitor.

UA probably doesn't have the power to buy a major manufacturer. They have a much smaller portion of the market than Nike and Adidas, although it is growing at a nice rate.

Maybe they could join forces with PING and focus on making high quality apparel? I've always felt like the PING clothing was a bit second thought.

Any company making a hasty decision to enter the golf equipment business in the current climate is destined for a quick demise. I have a feeling UA is well aware of that.

Fila ------- Titleist
Adidas----Taylormade
Puma-----Cobra
Nike-----Nike
Callaway-----Callaway
SRI Group-----Srixon/Cleveland


Imo if UA [u]was[/u] to get into the club business they would be looking to a company such as Scratch or Edel. Callaway might be too big of a pill to swallow, especially if the venture goes south. UA def. ahs $$$ in the bank and they are looking at ways of expanding the brand. Will be interesting...

God Bless
Jer

Considering the current decline in the club business and the firing of 500 pros just at Dicks it does not seem to be a good time to get into the club side.If you buy a small guy then you have the issue of placement. If you buy a big company you have the issue of slower sales and the need to give up margin for shelf space.Then make-down money if the stuff does not sell fast enough. UA has a good business as is. They seem to have placement on both sides of the golf street (Private cubs vs Public) and they sell department stores If/when they expand the footwear offerings in golf they should get a shot at least at the big box guys who helped to launch them.
The best thing about their business plan is that know one sport dominates their business. They do well in all the ball sports. They are forcing their way into tech running which is big.Heck based on their understanding of fabric they would be far wiser to focus on yoga which is exploding and female based.We are walking billboards for their business and they seem to understand that to continue to grow they just need to stay good at what they are good at.

No idea why people think pairing up with a small company would be a good idea. Those companies are small for a reason...

Pairing up with Ping, or at least trying to get on board with their staffers isn't a bad idea. Mahan already wears the gear, Louis could keep his simple style and Westy can have a UPS badge slapped on anything on the front, and UA on the back. Bubba should leave Oakley as that's just a bad marriage with blah clothing. Bubba and UA would be a good fit.

sometimes being 'smaller' is better. UA went public in 2005 and their stock has done quite well because of their niche. Pigs get fat, hogs get slaughtered.

Under Armour is an apparel and accessories company and not just a golf company. Look at what they do across the board and not just for golf. They don't make baseball bats or gloves and to my knowledge there has never been any discussion of them buying TPX or Akadema or another equipment manufacturer so why would they do this in golf? They have some great young brand ambassadors with Spieth in Golf and Bryce Harper in baseball so I think they should stick to what they do well in all sports which is make quality apparel and accessories. Just my opinion though.

UA is currently sitting at about $3bn in annual revenue on nearly 50% gross margins. They're currently about 1/5 the market cap of Nike who does about $30bn in annual revenue on very similar gross margins.

Nike could afford to get in to golf equipment at a time that the equipment business was growing and they had exclusive marketing rights to the engine of that growth. I don't see Kevin Plank jumping haphazardly in to the golf equipment market. Where he can leverage design synergy with other sports, he'll do it, and their golf apparel and (future) footwear lines make perfect sense. Club design, manufacturing, and distribution do not.

If you look at the very few places UA has gone into equipment, it has been very measured. Take LAX. Headquartered in Maryland, a LAX hotbed, and with a fairly low barrier to entry, UA has ventured in to LAX equipment. It is a massive growth sport and is garnering more college attention. It makes sense to be able to be an end-to-end supplier in the LAX market and sew up name brand programs like Maryland and Notre Dame in that sport.

Plank is spending his money in very targeted ways. He locked up ND to put himself next to an iconic brand in college football, and he's signing an increasing stable of NFL guys with UA shoes and gloves. He admitted to a false-start in their women's apparel line and has made a tremendous push into that growth market. They're marketing behind Tough Mudder and other growing fitness crazes. He's also sticking to a very tight, well-formed brand message of athlete performance. Particularly with the ND signing, they talked about using ND athletes as a testbed and proving ground for performance technology. I think you're far more likely to see UA venture into electronic performance monitoring/tracking before you'd even see a hint of UA golf equipment.

I'd love to see Under Armour buy Callaway. My two favorite companies! But I agree that it wouldn't make much sense for UA right now. I'd wait a while until the golf biz finishes the decline. it has some more retraction to do still unfortunately.

For the record:
Under Armour market cap $14.75 billion
Callaway market cap $610 million

They have very nice apparel, whether shorts, pants, shirts, base gear or underware. They are all awesome to wear. I have not worn the shoes but they look very nice, so i will imagine they will be top notche.
Be nice if they go the whole way into the market like Nike and adidas.

I'm siding with the others who say that UA is too smart to enter the golf equipment business at this time. They can stay in shoes and apparel with Spieth as their runway model and do fine. Equipment is entering into a lean period. Nothing is selling, outlets are overstocked and cutting back. (Imagine you're a buyer at Dick's, swimming in unsold TMag and Callaway, and the UA rep comes around to twist your arm for a new purchase! First you laugh, then you cry.)

In 2015 and 2016 the equipment mannies are going to be lay-off, trimming product lines and cutting back. If UA does buy someone to get in the game, it will be a tad later and at firesale/bankruptcy liquidation prices.

Because it is better to sell the razor blade rather than the razor.

Perfect marriage although I firmly believe it will never happen would be for under armour to partner with TEE and scratch although they would not match the sales that would be a line of equipment and apparel that would rival titleist