Hot and Cool

A specialty clothing maker is winning over soldiers and cashing in on war.

The sportswear market is estimated to be worth $35 billion. Standard fare such as shoes and shorts sell well. But it's an especially good time right now for specialty clothing. Take Citi Trends, a low-cost line that targets urban customers, or Zumiez, a combination hipster-skateboarder brand. According to Bloomberg, the value of those companies' stock increased more than 80 percent only three months after their initial public offerings in May.

In August, a Baltimore-based clothier popular among military service members got in on the trend. Under Armour Inc. announced it would sell up to $100 million in stock in an IPO. Founded in 1996, Under Armour makes a line of tops, pants, shorts, underwear and other "performance apparel" designed for a simple purpose: to keep you warm in the cold and cool in the heat. The manufacturer uses microfiber in its design, which wicks sweat off your body and leaves the skin dry. You're more comfortable in hot weather, because your skin isn't wet. And when it's cold outside, the fabric traps body heat, leaving you warm and dry.

Under Armour is popular among professional and amateur athletes and has attracted a wide following. Financial analysts predicted the company would fare well in its public offering, because it has built up a strong brand. But beyond the sporting and fashion-conscious crowds, Under Armour has developed one of its most loyal customer bases in the U.S. military, particularly among troops deployed to Afghanistan and Iraq, where temperatures soar and dip dramatically throughout the year.

Under Armour has a line of apparel called Tactical that's modified for soldiers. It features the same styles as civilian tops and bottoms-LooseGear for all purpose conditions, HeatGear and ColdGear, meant for hot and cold weather, as well as a line for women. But Tactical items are offered in army brown, olive drab, midnight navy and traditional black and white. Also, the Tactical section of the Under Armour Web site features military models, not athletes.

In one image, a soldier poised on one knee wears a LooseGear shirt, looking as if he'd just as soon take a hill as take off on a run. His muscular arms protrude from the tight, olive-colored fabric. He's a picture of soldierliness. And he's totally dry.

There are some kinds of protection Under Armour can't give. A disclaimer on the Web site advises, "Do not use Under Armour as a substitute for flame-resistant or ballistic protective equipment." But the company is still targeting the military as if it were selling standard-issue apparel.

Soldier testimonials are effusive. On Amazon.com, a convenient place to buy Under Armour online, a customer who calls himself Spc. Sublett says he's stationed in Afghanistan. Although his identity cannot be verified, Sublett does note the Tactical line's less apparent benefits. "Sometimes I have to go long times in hot weather without showers. Under Armour prevents some of the nasty side effects of these extreme conditions. All of my buddies out here use the same thing. They're soldier-essential equipment. The only thing that would make them better is if the Army would issue them."

Under Armour is sold in retail outlets nationwide and on military clothing Web sites, as well as its own. The Army's soldier gear requisitioning service, the Program Executive Office Soldier, says Under Armour T-shirts perform better in warm weather than the Army's own version, but they cost about five times more.

Company officials declined to be interviewed because of the pending IPO. But last year, Tom Byrne, Under Armour's director of new business development, told Army Times that "The product has done very well in PXes across the country and in the Middle East, and we have seen an increasing demand month after month. There is clearly a need for a better alternative than the standard-issue cotton T-shirt."

And therein lies the secret of Under Armour's success. It has taken a product that performs as advertised, and found a market that desperately needs it-and is willing to pay a relatively exorbitant price increase. Simply put, Byrne says, "The members of the military who wear our gear wear it because they love it."