NEW YORK (AP) — Sports apparel maker Under Armour said Wednesday it aims to double its revenue by 2018.
The Baltimore-based company said it is setting a target of $7.5 billion in revenue that year. Under Armour reported $3.08 billion in revenue in 2014 and expects about $3.84 billion in 2015.
Under Armour is reporting rising sales of shoes, clothing and other accessories, and it is spending large sums to buy app makers in hopes of capitalizing on a more high-tech and gadget-oriented fitness age. This year the company spent $475 million to buy MyFitnessPal, which tracks calories and exercise, and Endomondo, a fitness tracking and social fitness network.
Under Armour also said it extended its contract with NBA MVP Stephen Curry, one of the athletes most closely associated with its brand. The new contract with Curry runs through 2024. The company launched a Curry signature shoe earlier this year and is getting ready to start selling a second, and it says he will also be involved in marketing its apps, training, and lifestyle products.
Curry, along with golfer Jordan Spieth and ballet dancer Misty Copeland, are young stars whose association with the brand has helped raise Under Armour’s profile. All three have experienced considerable success this year, with Curry taking home the Most Valuable Player award and the NBA Championship with the Golden State Warriors, Spieth winning two of golf’s four major titles and coming close to winning the other two, and Copeland became the first African-American woman to be a principal dancer at American Ballet Theatre.
Under Armour had $1.84 billion in revenue in 2012, so if it comes close to its 2015 estimates, it will more than double that total. That would still put Under Armour far below some of its biggest rivals. Nike Inc. reported $30.6 billion in revenue in its last fiscal year, which ended on May 31, while Adidas AG had about $16.4 billion in revenue in 2014.
Shares of Under Armour Inc. rose 4.7 percent to $103.36 on Wednesday. The stock has climbed 53 percent over the last year.