The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
NEW YORK, United States — Under Armour Inc. plans to build "the single greatest retail store in the world" on Manhattan's Fifth Avenue, in space formerly occupied by toy store FAO Schwarz, the sportswear maker's chief executive officer said.
"We know that's a big statement with big company, but I think that that's the opportunity we have," chief executive officer Kevin Plank said on an earnings conference call Tuesday. "I think it'll really position the brand again in the iconic place where we believe we belong."
Under Armour, which is jostling with Nike Inc. for market dominance, has been looking for a high-profile retail location in midtown Manhattan to raise its brand identity. Taking space along the world’s priciest retail corridor, in Boston Properties Inc.’s General Motors Building at Fifth Avenue and 58th Street, will give Under Armour one of the highest profiles possible.
Plank said Under Armour will take about 53,000 square feet (4,900 square meters) in the former FAO Schwarz store, which parent company Toys “R” Us Inc. abandoned last year, citing rising rents. The closing left the 154-year-old brand, whose Fifth Avenue store was famous for the giant toy piano that Tom Hanks danced on in the 1988 film “Big,” without a retail outlet.
ADVERTISEMENT
Boston Properties will turn the space over to Under Armour in 2018, after a temporary tenant leaves, the landlord said in an e-mail. About 17,000 square feet of the former FAO Schwarz space remains available for lease.
The new Under Armour store will open no later than mid-2019, Plank said. He did not say how long the lease would run. It will be Under Armour’s second company-run store in Manhattan, after a location on Broadway in Soho.
By David M. Levitt and Matt Townsend; editors Nick Turner and Daniel Taub.
The companies agreed to cap credit-card swipe fees in one of the most significant antitrust settlements ever, following a legal fight that spanned almost two decades.
In an era of austerity on Wall Street, apparel businesses are more likely to be valued on their profits rather than sales, which usually means lower payouts for founders and investors. That is, if they can find a buyer in the first place.
The fast fashion giant occupies a shrinking middle ground between Shein and Zara. New CEO Daniel Ervér can lay out the path forward when the company reports quarterly results this week.
The performance coach and Allbirds’ co-founder discuss the transformative power of togetherness in fostering a culture of excellence.