Gisele Bundchen’s New Under Armour Gig Is The Supermodel’s Most Profitable … – Forbes
Gisele Bundchen’s new multi-year contract with Under Armour Under Armour is the biggest of her 20-year career so far, surpassing the $25 million, 5-year deal she landed with L Brands L Brands Inc’s Victoria’s Secret in 2000. Sources tell FORBES the sums involved are similar to those recently offered to Oklahoma City Thunder’s Kevin Durant, when Under Armour tried to lure the NBA star away from rival Nike with a $275 million, 10-year contract. Durant ended up renewing his contract with Nike.
Bundchen’s new gig could also birth a new line from Under Armour, as the Baltimore-based company is looking to increase its presence in the booming women’s athletic apparel market.
According to The NPD Group, total U.S. women’s apparel retail sales reached $116.4 billion in 2013, a 4% increase over the $112.3 billion generated in 2012. Double-digit increases in some of the smaller apparel segments — those producing less than $10 billion in annual sales — drove the gains. Among them was outerwear, which increased 12% to $6.3 billion. Under Armour’s women’s business does about $500 million in sales annually, about one-third of the company’s overall apparel sales.
In addition to that, Bundchen’s contract includes an option for her to become a minority shareholder in Under Armour in the future, following in the footsteps of her husband, Tom Brady, who in 2010 inked an endorsement deal with the brand for a minority stake.
The announcement of Bundchen’s hiring as Under Armour’s new spokesmodel helped the company’s share price climb 4% to $71.13 yesterday, adding some $591.6 million to its market value, based on the 213.28 million shares outstanding.
Bundchen was recently named by FORBES as the world’s highest-paid supermodel with $47 million in earnings between June 2013 and June 2014. Throughout her career, the supermodel — who lends her image for the likes of H&M H&M, Chanel and Pantene hair products and has several licensing deals — earned $386 million, and is on her way to possibly becoming the world’s first billionaire supermodel.
Full List: The World’s Highest-Paid Models of 2014