When Kohl's starts selling Under Armour clothing and footwear this spring, it will be the biggest launch of a brand in the discount department store's history.
Retail analysts for Baird's Softline Retail see the partnership as a positive for both Kohl's and Under Armour, according to a story today in Barron's.
Baird's analysts, who met recently with Kohl's, say the new retail channel will help Under Armour better reach women and kids, the Barron's story said.
Analysts Jonathan Komp and Benjamin Bray said Nike is now the chain's top national branded partner with retail sales estimated at $800 million. Kohl's plans to invest heavily in store fixtures to showcase Under Armour's men's, women's and kid's apparel and footwear.
"We also believe Under Armour currently is Kohl's top-searched-for brand online not currently carried," the analysts said.
Under Armour founder and CEO Kevin Plank first announced the Kohl's plans in July, a move he said had been in the works before the collapse of Sports Authority, which had been a key wholesale customer.
"It's a proactive move," Plank had said in a call to analysts. "Kohl's is a great evolution for us. ... We believe there's a massive opportunity with the consumer walking into those stores and looking for the Under Armour brand and haven't been able to find it."
It's part of a strategy to expand the women's apparel and footwear business that reached $1 billion in sales last year. Most Kohl's shoppers are women, Plank had noted.
The Baird's analysts expect Under Armour can sell between $500 million to $600 million of its products annually at Kohl's, "which we think largely would be incremental for the brand especially given greater reach across under-penetrated categories (women's/kid's) and geographies," which will include 100 stores in California.
Kohl's is now planning a full-scale launch, the report said, instead of an initial launch in 600 stores.
lorraine.mirabella@baltsun.com