Under Armour to open big flagship in iconic building on Fifth Avenue

Under Armour on Tuesday reported a drop in profit for the second quarter, related to the closing of The Sports Authority. The athletic wear brand also revealed plans to plant its banner on prime real estate in Manhattan.



Speaking with analysts on the company’s quarterly earnings call, Under Armour chairman and CEO Kevin Plank said the brand will open a 53,000-sq.-ft. flagship in the General Motors building on Fifth Avenue, in the space formerly occupied by FAO Schwarz. (FAO, which is owned by Toys “R” Us, closed June, citing rising rent.)



"Being there, at the mouth of Central Park, on the opening of Fifth Avenue, we think it's a great platform for the brand," said Plank. "We're really going to be able to define ourselves as the company we expect to be."



RKF and Mason Retail Group arranged the lease for the former FAO Schwarz space on Fifth Avenue on behalf of Under Armour.



For the quarter ended June 30, Under Armour’s net income fell 58% to $6 million, largely due to a $23 million impairment charge tied to the liquidation of The Sports Authority's liquidation, along with a dividend paid out to certain shareholders.



Revenue increased 28% to $1 billion, in line with estimates. Apparel net revenues increased 19% to $613 million compared. Footwear net revenues increased 58% to $243 million, led by the continued strong growth of the Stephen Curry signature basketball shoe line



"The strong broad-based results posted this quarter highlight the continued demand for the Under Armour brand around the world,” said Plank. “With the opening of 60 new international Under Armour stores so far this year, including doors on two new continents this quarter, our international business continues to expand and to resonate with the global athlete.”



Under Armour also announced it will launch a new sportswear brand this fall, called UAS, that will target a wide audience.



“The authenticity we have gained with the athlete over the past 20 years has positioned Under Armour to widen our access through categories, channels, and geographies,” Plank said. “Starting with our launch this fall of Under Armour Sportswear, which we are calling UAS, we will continue to find new opportunities to bring more consumers into the Under Armour Brand, whether that is through compelling flagship retail, new partners in wholesale, or on a digital platform.”