Lululemon Athletica inc. (LULU), NIKE, Inc. (NKE), Under Armour Inc (UA): Three Sports Companies With a Bright Future

The Armour39 digital performance monitor is a gadget designed by Under Armour Inc (NYSE:UA) that measures willpower. This gadget, when strapped around a person’s chest, measures heart rate and calories burned, and produces a ‘willpower’ score. Under Armour launched this product in the market in March 2013, and also created an online campaign promoting this product. This online campaign, because of the benefit of the product, drove one million additional site visits in the first-quarter of 2013. This online promotion was done to increase traffic and conversion on the company’s e-commerce website. Under Armour’s e-commerce model is based on driving traffic to its website. Once a consumer visits the website, he is persuaded to make a purchase and convinced to make a repeat purchase. The company’s e-commerce sale was $165 million in 2012, 9% of its $1.835 billion revenue. E-commerce sales are expected to increase to $222.5 million in 2013, a growth of 35% year-over-year.

Conclusion

Lululemon Athletica inc. (NASDAQ:LULU) has growth potential in Europe and Asia. It is also expanding its business in the U.S. to improve its store productivity.

NIKE, Inc. (NYSE:NKE) is leveraging its presence in the global markets. Nike is also well-positioned to accelerate its share repurchase program.

Under Armour Inc (NYSE:UA)’s global expansion plans will help the company to double its international revenue by the year 2016. Its e-commerce business is expected to grow by 35% this year because of the increased traffic on its e-commerce website.

All three of these stocks are a “buy.”

The article 3 Sports Companies With a Bright Future originally appeared on Fool.com.

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