Kevin Plank, a former college football player, founded Under Armour in Baltimore Maryland in 1996. Plank designed clothing that would keep athletes cool and dry while practicing and competing. During the 2000s, Under Armour was an ideal marriage of performance and fashion and the company experienced a dramatic rise in stock price (Li and Saunders, 2018). According to Kraft and Lee (2009), Under Armour utilized new design and manufacturing techniques to differentiate itself from competitors. In addition to having a high-performance product, early strategies included celebrity endorsements, product placement and athletic sponsorships, leading to significant market share. By 2017, Under Armour annual gross revenues approached $5B.
Forecasts and Share Classes Changes
The stock price decreased 25% in October 2017 primarily because Under Armour missed its sales forecasts (Morris, 2017). Meeting or surpassing analyst expectations is important because according to Lopez and Rees (2002), the market penalty is much higher for missing analyst forecasts than the market gain is for exceeding them. The reason missing forecasts is so important is that companies will often devise strategies such as offering consumer rebates or incentives to meet market projections. One study by Bennett and Bradbury in 2010 indicated that “increased eﬀort in the form of increased sales, increased cash ﬂows from sales, and inventory reductions is used to meet earnings benchmarks” (p. 552).
The reason the stock dropped by nearly half in 2016 was because Under Armour created a new share class to protect the voting rights of the existing ownership structure affected by the steep growth rate of previous years (Bezede, 2016). Although the decrease was significant, it signaled support for founder Kevin Plank and was analogous to moves made by Google and other companies in comparable situations.
The image in the right represents IIHR’s research related to rivers, watersheds, and the landscape. Our many researchers include experts in hydrometeorology, hydrology, hydraulics, geology, hydrogeology, climate change, remote sensing, statistics, physical and computational modeling, hydroinformatics, and resilience and vulnerability. IIHR is especially successful in developing and fostering multidisciplinary programs that provide unique opportunities for collaboration both within IIHR and UI, and with colleagues around the globe.
Dating back to 1855, the Iowa Geological Survey (IGS) is IIHR’s oldest program. IGS staff continue to collect, preserve, and interpret geologic and hydrogeologic data in Iowa. The IGS moved from the Iowa Department of Natural Resources to the University of Iowa in 2014, and this integration within IIHR supports systems-scale research related to Iowa’s landforms and watersheds.
Established in 2009, the Iowa Flood Center (IFC) is the United States’ first and only academic center devoted solely to flood-related research and education. IFC staff and students develop some of the most advanced projects and tools to improve Iowa’s flood preparedness and resilience. Most of these tools can be accessed by the general public via the Iowa Flood Information System (IFIS).
IIHR is a key partner in the Iowa Nutrient Research Center (INRC), which brings together researchers from Iowa’s three public universities and several government agencies to better understand how nutrients move through the landscape and waterways. A major facet of IIHR’s contributions to the INRC program is to develop, deploy, and maintain the largest water-quality sensor network in the country.
The Iowa Watershed Approach (IWA) is a statewide project funded by the U.S. Department of Housing and Urban Development (HUD). It focuses on nine watersheds from the southwest to the northeast corners of the state that had recent Presidential Disaster Declarations related to flooding. IIHR/IFC students and staff are working with many dedicated partners and landowners to reduce flooding and improve community resilience to flooding.
LACMRERS is the first university-owned research and education center on the Upper Mississippi River. Located just north of Muscatine, Iowa, on the Mississippi River, LACMRERS was designed and equipped to support research and education relating to the Mississippi River and large river systems in general.