Under Armour (NYSE: UA) announced it will move into the the former FAO Schwarz flagship store on Fifth Avenue in New York City. The athletic wear company will be moving into the 53,000-sq.-ft. space as early as 2018.
The company's move is part of a strategy to build its brand and sales by occupying a "landmark retail space," CEO Kevin Plank told investors in an earnings report.
FAO Schwarz exited the space last year due to the high rent, which Cushman & Wakefield price at $2,980 per sq. ft. on the ground floor of Fifth Avenue.
In addition, Under Armour announced it would expand distribution into Kohl's in 2017, reported CNBC. The partnership has been in the works for years and will put the Under Armour brand next to competitor Nike in the department store chain. The brand will initially launch in 600 Kohl's store before expanding to all 1,100 locations.
The push into Kohl's is part of Plank's strategy to reach more female shoppers. In 2015, Kohl's was voted by women as their favorite place to shop for clothes, according to a Piper Jaffray report on the habits of female shoppers. The company is still set to expand its women's business to $1 billion in 2016.
Looking at the quarter, Under Armour's revenue rose 28 percent, although its net income fell 58 percent, mostly due to the $23 million impairment charge tied to the Sports Authority liquidation.
- see this CNBC article