Here's what Under Armour plans to sell at Kohl's
Under Armour recently offered a few more details about its upcoming expansion into 1,200 Kohl's stores.
The Baltimore-based sportswear maker will sell lower-priced items like basic tank-tops, leggings and shirts in exclusive colors and materials at Kohl's, according to Citi Research analyst Kate McShane, who released the details in an investors note following a conference call with Under Armour.
Shoppers will still have to visit an Under Armour store or sporting goods store to buy its more expensive Infrared and CoolSwitch products.
McShane wrote in her report that the conference call was with Carrie Gillard, director of investor relations at Under Armour.
Under Armour's growing footwear business will make targeting Kohl's (NYSE: KSS) shoppers easier because it plans to revive some of its older shoes at Kohl's exclusively, Gillard told McShane, according to the note.
Under Armour CEO Kevin Plank announced the sportswear maker's upcoming partnership with Kohl's during an earnings call last month, but the company did not immediately release details on the deal.
The announcement raised some eyebrows, with pessimistic investors speculating that Under Armour (NYSE: UA), which markets itself as a premium brand, will sell in a mid-tier department store to offset slowing growth opportunities in North America that have become exacerbated by the closing ofSports Authority.
During last month's earnings call, Plank said the partnership will help Under Armour better reach women.
"Kohl's has a large consumer base, the majority of which are women shoppers," Plank said. "We think Kohl's is a great evolution for us. The female consumer is there. She’s shopping and she’s buying."
McShane wrote that she believes it has always been Under Armour's intention to expand the brand into other stores.
"[It's] not unlike what Nike has achieved with distribution ranging from outlet to mid-tier and premium channels, though it will require an expanded assortment and increased emphasis on price point planning than UA has historically offered," McShane wrote.
Once Under Armour is in Kohl's stores, it will be in about 11,000 points of distribution, about half of Nike's reach.