Under Armour 2Q17 Earnings Call Notes

Kevin Plank – Chairman and Chief Executive Officer

Company is pivoting

“The landscape is evolving quickly. Therefore, we too must evolve quickly. This evolution requires a pivot, and we’re doing just that. We’re pivoting from a product company to a consumer-led and category-managed brand, from predominantly men’s to distinct collections for men, women and kids; from U.S. mostly apparel-centric to a global apparel, footwear, accessories portfolio; from mainly wholesale to a more balanced direct-to-consumer offering; from a historically top line driven P&L to return-focused more disciplined financial model; and ultimately pivoting from good to great operations. Once balanced, these pivots will work together to build a more efficient, thus more effective Under Armour.”

Engagement requires consistency and saturation

“On the marketing front, we’re also pivoting with respect to approach, construct and point of view. While the intersection of digital, social, and traditional continues to blur lines, success is now measured in terms of months, weeks and even days. Engagement and intimacy requires consistency, saturation and showing up whenever and wherever a consumer engages our brand.”

Brand built on performance and authenticity

“a brand that’s basically been built on performance and authenticity has become a bit of a cliché word, and a lot of people talk about going for authenticity and there are some companies that are just authentic. And we really view that as being a strength of our business and our brand.”

We remain a growth company

” I just wanted to tell you we enjoyed hyper-growth for several years, and I want to be clear that we still believe we remain a growth company. The restructuring plan that we spoke about is a demonstrative sign that we’re not standing still, but acting quickly to evolve Under Armour to become a stronger, faster and smarter company.”

Dave Bergman

Moving to a return focused company

Yeah. I’m sorry. I apologize. From that perspective, we are definitely evolving. It is a pivot for us. Not that top line is any less important, but there’s definitely a more significant focus on profitability and on return in investment in every way we look at our business and being much more strategic from that perspective.

Under Armour 1Q17 Earnings Call Notes

Kevin A. Plank – Under Armour, Inc.

13,000 points of distribution, competition has 23,000 points

“Yes. So as I mentioned a minute ago, we told you a while back that we had about 11,000 points of distribution, we were targeting roughly 13,000. So we’ve now hit that. As far as distribution goes, number one, it was important to me that when we announced expanded distribution that it was the same day that we announced being on Fifth Avenue and committing to building the greatest retail store in the world that will open in the middle of 2019.

So our commitment to being premium brand has never wavered or changed, but to compete at the levels where we want to run, we feel that we need to be the best and we feel like we need coverage and coverage is about some of the volumes that we can drive.

And again, where we talk about being in 13,000 points of distribution, it’s important to remind people that some of our key competition has more than 23,000 points of contribution in North America alone.”

We out of acquisition mode and into activation mode

“As far as additional distribution or anything there goes, we are completely, as I said, out of acquisition mode and in activation mode. The goal that we have is making all of our existing partners better, and this means doing a better job in the stores where we are. So you’re not going to hear of any additional big box opening happening in the United States for a very long period of time. We like the team that we have on the court. We like our distribution, and we think that we have a great, great opportunity there.”

Under Armour 4Q16 Earnings Call Notes

Under Armour (UA) Q4 2016 Results

Kevin Plank

CFO leaving

“In addition to our earnings results this morning, we also announced that Chip Molloy has decided to leave Under Armour for personal reasons. With this marking Chip’s last call, I’d like to say thank you and wish him well in his future endeavors. Chip will continue to serve in an advisory role for a period of time.”

Traffic decline caused more promotions

“So first, I’d like to explain a few things. What happened, what we learned, and what we’re doing about it? So let’s start with what happened. In the fourth quarter, slower traffic caused significant promotional activities earlier, deeper and broader than expected. This commoditized some of our more basic core product that had previously sold through for us in years past. This, in addition to higher demand for more lifestyle silhouettes caused us to be out of balance with our assortment. So we lost top line volume as we work to adapt through our mix and pricing.”

We’re in a constant state of evolution

“Being a growth company means that we’re in a constant state of evolution. In 2017, we will remain on offense by continuing to invest in our fastest-growing businesses and leveraging our unique strengths and competitive advantages, and we have a lot of advantages: innovative product, brand strength, a broad base of premium sports marketing assets, unparalleled consumer connections and a strong, strong management team. Staying on offense, however, does not mean growth at any cost. It means striking an appropriate and responsible balance for the health of the brand in the near and long term.”

Need to make UA simple

” In my office here in Baltimore, I keep white boards. I use them as a way of organizing my thoughts, ideas, business plans and strategies. And recently with all the things written on them, I cleaned them all off, and I wrote just one phrase: make UA simple. And that’s just it. As we pass through $5 billion on our way to $10 billion, we must get better, faster and smarter at what we do, why we do it and how we do it. And in a way, that is simple and humble.”

The fact is that the consumer expects more today

“The fact of the matter though is that the consumer, they expect more today. They expect speed and convenience and best price and value, and they expect it the next day. So that choice of newness and customization is something that we need to react to and do a better job of. This idea though is we think that the cycle that we’re living in from retail and inventing the next big thing, it’s going to come from much closer to the concentric circle versus something built frankly off of a product that has to be hot, or an athlete or a celebrity, or a product that just happens to be about innovation.”

We’ll always have a wholesale aspect to our business

“So, I don’t think any of these things – I think the way that we’re viewing it is, of course, we like controlling our destiny, but we began as a wholesaler, and we’ll always have a wholesale aspect to our business with the best partners out there that continue to prioritize us and put us and present us in a way which we think tells and helps explain the great products that we have and doesn’t just differentiate us by price.”

Under Armour 3Q16 Earnings Call Notes

Under Armour (UA) Q3 2016 Results

Our business is about more than athleisure

“Our industry of sport is different. Our industry’s growth opportunities are global with consumers around the world embracing athletic apparel and footwear at its historic levels. It’s not about what people are conveniently referring to as athleisure is the simple truth that consumers all over the world are raising expectations about what to expect from their apparel and footwear and it’s a shift that is not going to be reversed.”

Three strategic initiatives going forward

“recently I pulled together the top leaders in the company and discussed the strategic growth and direction of Under Armour. We came away with three key areas of focus that I want to share with you today. First, getting big fast. Second, making retail a core competency. And third, getting more shoes on feet. ”

Growth gives us the ability to move up in weight class

“As I said earlier, we have succeeded over the past 20 years by consistently punching above our weight and that will not change. But our growth now gives us opportunities to move up in weight class and we find ourselves well-positioned at this moment in time to compete for long-term relationships with athletes, teams and league affiliations that we previously could not justify.”

Need to build a business as big as our brand

“we talked about building a business as big as our brand. We’ve had our eye on $10 billion, that’s the way that we see our company, I think it’s the way that people view and judge us with $7.5 billion being our next milestone to be hit by 2018. And again, we want to reiterate that we’re on track to hitting that goal.”

We still only have half as many points of distribution in the US as our two largest competitors

“I want to give some perspective here for a second just on where we are. I mean, Under Armour’s – we got dropped into the sporting brand pond about 20 years ago. And we jumped in and there were a lot of players, 20 players, 30 players or brands as many as you want. Today, we’re the third-largest brand in the world. We’re the second largest brand in North America. And our two largest competitors have more than 20,000 points of distribution each in North America alone compared to just our 11,000, which speaks to just some of the runway that we still have in front of us right here in our own backyard. They are also six times and four times our size respectively.

Chip Molloy – Under Armour, Inc.

Margin will come with scale

“As we start to get to $10 billion, there’s a couple things that will happen. One, the gross margins, we should start to get expansion on the gross margins and we’ll start to get that because we won’t be faced with as much of a mix shift that we’re faced with today and the improvements we’re seeing on the cost side of the house, we are seeing those today and they’ll continue; but over time, as we start to gain more and more scale, we’ll see that gross margin improvement. And on top of that as we get more into lifestyle, we’ll see more gross margin as well. So, once we start to get towards $10 billion we’ll see gross margin.”

Under Armour 2Q16 Earnings Call Notes

Under Armour (UA) Kevin A. Plank on Q2 2016 Results

Great brands are storytellers

“Great brands are iconic and inspirational storytellers, especially where product meets the consumer. For Under Armour, an important piece of that story is the retail experience we create and drive with our own brand houses.”

Talking about universities as part of key markets

“We recently signed two sports marketing deals with great iconic brands in key North American geographies, specifically Los Angeles and the Bay Area. Bringing both the UCLA and Cal Berkeley athletic programs into the Under Armour family raises the profile in California that we already have through great partners in sporting goods, mall, as well as existing and even new department store partners like Kohl’s, which has over a 100 stores in California. This is a great example of how we are thinking all the way through, all the assets that we could bring to bear to get after the opportunity in that very, very key market.”

Big shift in the workplace to casual and comfortable

“We also recognize that I think there’s a shift that’s happening in the consumer workplace right now, and I don’t know how many people in the call have people in their offices that are wearing suits and ties. And so there’s this massive shift to casual and comfortable, and I think what we’ve done to establish our brand is that our shirts aren’t just – they don’t just look great, but they actually do something.”

We need to meet the consumer at the transaction, which is shifting

“I think as we think about what defines the brand, our job is to be iconic, and the consumer’s going to have places where they choose to interact with our brand, where they choose to purchase our brand. Our job is to meet them at that transaction. And one thing we know is certain, particularly we’ve learned over the last 12 months or even shorter than that is that moment in time, that place will always be shifting. And so we need to be ready for that. We need to be prepared for that.”

China is writing the script of e-commerce

“And the other thing is our eCommerce over there. Our eCommerce in China has basically exploded for us as well. And so this is not just a bricks-and-mortar story. And frankly, China may actually end up being the palette that we’re able to write the script of what is that balance. Because I think, one of the questions that everybody is having in this space right now is, where – some of our competitors specifically, they talk about the power of their growth in terms of the number of retail stores. I think that’s one indicator for it, but I’m not sure that all the retail stores that are open today are going to be open in the future.”

Under Armour 1Q16 Earnings Call Notes

Kevin A. Plank – Chairman & Chief Executive Officer

Grown topline above 20% for six straight years

“This means our top-line growth exceeded 20% for the 24th consecutive quarter, that’s six straight years above 20%. And we saw continued acceleration in both our Footwear and International businesses. These results are a great example of what happens when we execute at a high level and deliver compelling head-to-toe product for the consumer.”

Steph Curry’s ascent creates a once in a generation opportunity for our brand

“We recognize that Stephen’s ascent to the top of the basketball world creates a once-in-a-generation opportunity for our brand, and our team is laser focused on delivering against that potential.”

The Rock is new brand ambassador

“Last week, we released creative for UA HealthBox, starring our newest brand ambassador, Dwayne “The Rock” Johnson. It’s been a great start to the relationship as he is not only the voice for our HealthBox, but his initial launch of Project Rock Backpack has already sold out.”

Tough quarter for some partners in sporting goods

“it was obviously a tough quarter for some of our partners in sporting goods, as we saw Sports Authority and just recently Sport Chalet with some of the filings that have come out. And I guess, if there’s anything as we think about our business, the good news is that we’re not strictly a North American story anymore as this is a global company”

We don’t believe that retail is dead

“I want to be clear that we do not believe that retail is dead. We do believe that there is still an underlying very strong wholesale market out there and we expect to continue to be iconic, to be a destination.”

In order to compete in digital you have to be a good storyteller

“in order to compete in today’s market with what’s happening on the digital side, it needs to be experiential. And one of the things we pride ourselves on is being terrific storytellers, and we’ve got some amazing partners out there that you’ll see us continue to invest, and frankly reinvest in the places we’re already doing business today.”

Building new facility in Portland to bring in talent (from Nike)

“we’re incredibly excited about what we’re building in Portland, a new 100,000 square-foot headquarters that we’ll have there, based in Portland, that’ll really give us access to talent without having to uproot families and move them across the country. And so again, we’re going to go where the fish are there.”

Data is the new oil

“it’s this idea, is that data is the new oil. Like those who have the data, those who have the understanding of the consumer, we believe are the ones that are going to win. And for us, laying out, now having a Connected Fitness community of over 160 million with adding well over 100,000 new registrants every single day that are volunteering information to us, like how much they slept, how active they are, what they did when they exercised, how hard they exercise. And they’re doing things like using our gear tracker up to the tune of a million people that are asking us to tell them when they should buy a new shoe by evaluating the type of terrain they are running on and the distance they’re running on. The information we’re getting is extraordinary. But frankly, we’re still – we’re in the first inning of what’s happening in this world.”

Constantly invent

“at Under Armour, we really, we say the only thing that gets you fired at Under Armour is someone says, that’s the way we’ve always done it. And so we do believe we’re different company every six months”

Under Armour 4Q15 Earnings Call Notes

The next generation entering the workforce doesn’t know a world in which we didn’t exist

“This year, 2016, is Under Armour’s 20th year in business. It is an incredible milestone for any Company and for us, it means a few things. It means that the next generation entering the workforce doesn’t know a world where Under Armour didn’t exist. This generation doesn’t recognize us as the underdogs but as the always was. It means that we’re not a passing fad or a flavor of the month. The interlocking UA logo has become a globally recognized symbol for being aggressive, young and fearless.”

We’re just starting to see what partnering with an athlete like Steph Curry can do

“The sell-through on the Curry Two was like nothing we’ve ever seen before. The same words that people tend to say after watching Stephan play live. We’re just beginning to see what partnering with the right athlete, like Stephen Curry, can do for our business. It is difficult to underestimate the power of having the best sell-through of any signature basketball shoe this past season. It clearly lifted our brand in the mall channel and positioned us for aggressive growth, not only in signature but overall with this most important consumer base.”

Cam Newton is our guy too

“with the Super Bowl just over a week away, we will see yet another UA MVP, Cam Newton, compete at the highest level his sport while representing our brand. Cam has been a critical driver of our footwear success, with the Highlight Cleat. The Super Bowl will introduce him to a brand new set of consumers. It is a platform where companies pay $5 million to air a simple 30-second TV spot during the broadcast, while our guy will wear his UA cleats throughout the entire three plus hours of the game.”

Record equipped shoe

“Finally, we launched our first smart shoe, with the Gemini 2 RE which stands for record equipped. This shoe tracks every step and uploads data including time, date, duration and distance directly into our platforms. This cutting edge footwear provides an untethered experience and allows the athlete to run device free. There is no start or stop button. When the shoes are on your feet, it is ready and tracking. One of the coolest features of this shoe is that it tracks it’s own lifespan and will send a notification when it is time for a new pair.”

Partnering with IBM to help generate insights on health data

“we announced our partnership with IBM and their Watson platform to help build the insights capability for Under Armour Record. Wearables have been effective in telling you how many steps you took or the hours you slept, but they haven’t been effective in giving you proactive information on how to utilize that data to make your life better. Put simply, there was no call to action until now.”

We focus on creating products you don’t know you need

“At Under Armour, we focus on creating products you don’t know you need yet; but once you have it, you won’t remember how you lived without it”

Relentless pursuit of innovation

“Our relentless pursuit of innovation is just that, relentless. It never stops. When I first began Under Armour 20 years ago, I didn’t set out to make just another t-shirt. I set out to make a better t-shirt, one that solves a problem and gives whoever wears it an advantage. With our Connected Fitness business, we’re not releasing just another fitness app or tracking device, we’re building a complete ecosystem to manage your health and fitness with actual insights to make you better.”

Our largest competitor has 24k points of distribution, we have 11k

“So let me take a second and just talk about North America. I want to level set the context of how our distribution is aligned. So often, we’re compared to our competition. Well, our largest competitor in North America has approximately 24,000 points of distribution just in North America. At Under Armour, we have 11,000. We have the ability to expand that but we haven’t. We have stayed committed to our sporting goods, to our mall, to our department stores channel.”

Under Armour 3Q15 Earnings Call Notes

Getting ready to celebrate 10 years as a public co

“In three weeks, Under Armour will be celebrating our 10 year anniversary as a public company. Back in 2005, we were a $281 million company. Compression apparel made up two-thirds of our business. The phrase ‘connected fitness’ had not yet been coined. The day when we would feature a ballerina in a commercial seemed unlikely. And Jordan Spieth had only just begun his journey to greatness by talking golf lessons at Brook Hollow Golf Club in Dallas at the tender age of 12 from Pro Cameron McCormick.”

It takes a long time to get making shoes right

“one thing I want to emphasize to people is that it is 10 years in making shoes for us, but it absolutely takes time. The first category we got into was American football cleats and that was 2006 and it was a big breakthrough and we had high teens, low 20s market share, and since that time we are now pushing close to a 40% market share in football cleats with our sight set on being number one. And I say that only because of the category we’ve been in the longest, and if we’re 10 years in football cleats and five years in running shoes, imagine what we’re going to look like in running shoes in another five years there.”

It’s beyond the aesthetic

“And so it was about the aesthetic of the shoe but it’s so many factors more than just do you make a good speed cleat as to, are you in basketball, do you have an asset like a Stephen Curry that gives the credibility to the one who wears the shoe.”

It’s also about being able to get to the A team in the best factories

“And then beyond that, it’s when we go to being in the biggest factories, it’s not only being in the biggest or the best factories but it’s not having the B, C or D teams in the factories, but getting to a point where you have the A teams in the factories. We’re not going to get to that point where I mentioned 30 million pairs of shoes versus 0.5 billion to our competition, until we have the ability to truly level-load and give them the things that they need”

I don’t think our industry has been incredibly innovative

“I don’t think our industry has been incredibly innovative at all. When you look and you compare the fact that 20 years ago the technology that can fit on my fingernails today or in my iPhone or Samsung device, it took a mainframe the size of a Greyhound bus just 20 years ago and today it’s absolutely evolved. In footwear, we make shoes, we make apparel the exact same way we did 80 years ago.”

Our team isn’t preparing to battle current competitors its getting ready to fight where they’re going in the future

“what our team is preparing for isn’t what’s the next shoe coming from one of our current competitors, what we’re thinking about is what are we going to do if Apple or Samsung decided to make a shoe, how are we going to answer that. So that’s the type of I think leapfrog mentality and that moon-shot thinking that we are challenging our team with, let’s not fight with where people are today, let’s think about where they’re going in the future and what we can do to be great.”

Andrew Sohn: LMT, YHOO, SFS, UA

Andrew Sohn, a junior at Columbia University, has started to contribute to Avondale’s company notes database. Below are quotes from some of the calls that Andrew has read this week.



Lockheed Martin (LMT)


Acquiring Sikorsky Aircraft


The first strategic action we announced is our signing of a definitive agreement to purchase Sikorsky Aircraft.


Potential spinoffs or sales in the near future


The second major action is the commencement of a strategic review of our government IT infrastructure services work at Information Systems & Global Solutions and of our technical services work at Missiles and Fire Control. The strategic review will address the changing market dynamics affecting these businesses and will help us determine how to best position them for future growth and is expected to result in a spinoff or sale of the businesses.


Sikorsky catered to similar customer base, possible synergies


Some of the important strategic benefits of this acquisition are that Sikorsky has familiar customers. This familiarity will assist the integration process through utilization of similar knowledge and interaction with common customers.


Macroeconomic factors also helped acquisition of Sikorsky


Their strong aftermarket business is also expected to provide a long-term source of earnings to the Corporation and another lever of value creation. The opportunity to access capital in today’s historically low interest rate environment is another significant contributor to the rationale and value creation of the acquisition…Sikorsky footprint in the commercial aviation segment is well-established with the extensive activities supporting the oil and gas industry. While this segment has been under recent pressure due to low oil prices, it is expected to recover in the future and add value to the Corporation. We believe these current pressures enable us to make this acquisition at a low point in the economic cycle.




Adjusting operating profit and EPS guidance


On Chart 20 we provide our updated outlook for the year. We are leaving both orders and sales unchanged at this time… We are increasing our segment operating profit by $75 million due to our strong performance through the first half of the year and as a result of our increasing profit, we are also increasing our earnings-per-share guidance by $0.15 to a new outlook of between $11 and $11.30 per share.




Industry has more competition, and customers looking more at prices


As you know, there is a lot more competitors that have come into the marketplace and our customers’ priorities are changing and what they’re looking at more – they’re much more price-sensitive and so the elements of our business predominantly will be in the work that we’re doing for civil agencies, IT infrastructure type services.



Sikorsky offers more leverage through cross-selling


I think in particular the international sales market is an interesting one for us where we – through the combination of our portfolios coming in having a discussion about the security needs of our international customers whether it’s F-35 Littoral Combat Ships, now Sikorsky helicopters is a much much more powerful discussion than what I believe the current parent could have in terms of bundling products and services together to go into the international marketplace.



Yahoo (YHOO)


Tailwinds last Q3, not so much this time


You may recall, in Q3 of last year, we had a number of beneficial factors that led to a very good quarter. These included the World Cup, new patent license royalties, and some accelerated fees around the Alibaba IPO. As a result, we expect to see some pressure in terms of year-over-year trends in Q3. We expect to be able to continue to show strong top line revenue growth in terms of GAAP, but our revenue ex-TAC and adjusted EBITDA will likely be under pressure year-over-year.


Focusing on expanding market share


We’re also making important investments for the long term. We are investing heavily to grow market share through both traffic acquisition and marketing. Two examples are our recently announced partnerships with Mozilla and Oracle, both are large search deals that we believe will enhance and stabilize our market share. But they obviously run at a lower margin than our organic traffic.



Mobile search is important


Mobile search is key to Yahoo!’s future. Search is half of our business. Users are more and more transitioning from desktop search to mobile search and we think it is fertile ground for innovation.



Premuim ads, native pricing, and video pricing drove revenue growth


So across more premium ads being sold, native pricing improving, and the enhancement of video pricing being added to the mix, that’s really what drove a lot of that 10%.



New NFL deal offers new opportunity


On the NFL, one, we’re so excited that they chose us. It’s such a new area for them. It’s a great area for us. The fandom of the NFL is just immense, and so we’ve been working very closely with them to understand how the experience should be presented, how we should make it available to our different users, where on our site we should make it available.



Smart and Final (SFS)



10% unit growth is the goal


In the Smart & Final banner, our goal is 10% unit growth each year. That equates to 20 new stores in 2015 and at the end of the second quarter, we’re right on that pace.



Extra! In favor of Legacy


We also plan to continue our steady pace of Legacy Smart & Final banner store to Extra! store conversions and opportunistic relocations. With more than 50% of the Smart & Final banner stores now in the Extra! format, the fraction of legacy stores will continue to drop each quarter.



Deflationary pressures larger than expected


Generally speaking, deflationary pressures were higher than expected in the second quarter, but it’s important to note that we’re seeing across the board deflation in every category. In fact, in the Smart & Final banner, we tracked 27 sub categories of sales and in the second quarter, we believe that only four of the 27 categories were deflationary, but three of these are key volume categories for us; Cheese, dairy and produce and deflation in the quarter had an overall negative impact on sales growth.


Expanding into delivery models


One other element in introducing Smart & Final to potential new customers is our test of delivery formats. We’ve pilots in limited geographic areas in both San Francisco and Los Angeles markets. With Google Express for same day and next day delivery and more recently with Instacart, an on-demand delivery model, while our experience is limited, we’re encouraged by the potential of both delivery models to better meet the needs of our customers as well as the potential to attract new customers both households and businesses.

Under Armour (UA)


Making strong moves into NBA market


To help drive this initiative we’ve recently brought on Terdema Ussery who for the past 18 years has served as President of the NBA’s Dallas Mavericks and has prior industry experience in athletic footwear and apparel. We can speak to this in more depth at our Investor Day meeting at September but we want to be clear today about our intent. This category focus will provide the structure to help us sell more shirts and shoes. This structure has proven successful for us in Golf with the combination of great product; a great asset and a great team helped us double revenues in the past two years.



Using Connected Fitness platform to expand customer base


We can do so because of the strength of our Connected Fitness platform, but we continue to add more than 100,000 unique registered users of a platform every single day. We remained in the early stages of incumbent potential of what the world’s largest digital health and fitness community with now over 140 million athletes can do to help us build consumer engagement and drive healthier lifestyles…Ultimately the more people exercise the more athletic footwear and apparel they will buy. Again we will provide deeper detail on our Connected Fitness opportunities in September at our Investor Day but we’re extremely pleased with the growth of our community and the type of insight we can bring to our consumers lives.


Brand imaging is about consistency and long-term commitment


And so brands are built on consistency, consistency is built in trust and trust is built in drops and is lost in buckets. And so what you see is we had a great big pouring I think of credibility in the sport of basketball and which Steph brings us on a day to day basis but that’s going to require a lot more investment and it’s going to require a long-term commitment. And so we want to let everybody know particularly our consumer but frankly our competition as well that we are moving in the basketball we’ve been working on this for it’s not an overnight success we’re working on this for years if not decade and we’re incredibly proud of where we’ve gotten to but we’re really just getting started.



Don’t want to expand through fanbases


So we’re now looking at, a) our profitability and it’s been one asset at the time and it’s been things from joining the EPL football with people in places like Tottenham Hotspur and then finding ways to make investments the recent announcement we had with Sao Paulo Football Club down in Brazil it’s not an immediate return for us. I’ve always said I don’t really see us as a licensed jersey manufacturer I don’t like that idea of growing sport by simply selling fan gear, we want to be on the authentic athlete we want to be on the pitch on the court on the field. But there is ways for us to get in and so finding the resource that we can spin off to make an investment in the market is very new for us like Brazil, its’ a big deal. And so we’re — I think we’re very patiently doing that around the globe where we’re finding assets that make sense and especially we can reinforce at markets that we can create an ROI that’s sooner than later.


Under Armour 2Q15 Earnings Call Notes

Our athletes teach us great lessons for business

“These three athletes have combined to teach us one incredibly valuable lesson that we need to think bigger. For Stephan Curry, Misty Copeland and Jordan Speith, being a great basketball player, principal Ballerina and PGA Golfer was rooted in their ability to see beyond to be prepared to not just be great but to be extraordinary, to plan and practice but also know when to take the risk. Our lessons out of this are incredibly relevant to this moment in time for the Under Armour brand.”

More than change how athletes dress, change how they live

“our athlete success pushes us to see beyond just maximizing the revenue opportunities in any given quarter. It forces us to think clearly about what we need to do better and how we need to organize to be more than just an American sports brand to go from changing the way athletes dress to changing the way athletes live.

Being aggressive, young and fearless can be a deadly combination

“there is a bigger takeaway for our company and all of this, we’ve learned from these athletes not only about the preparation it takes the great but the added level of commitment it takes to be truly special. All three of these athletes started as clear underdogs, they were able to put themselves in a position where their skills and focus enable them to transcender sport. All of them have proven as Jordan Spieth stated following his master’s victory when asked why he chose Under Armour. That being aggressive, young and fearless can be a deadly combination.”

Brand awareness doesn’t mean that you’re all of a sudden flooded with orders

“we’re proud of what that means but it’s not a one way ticket to all the sudden you’ve arrived but there is a lot of work for us to be done and there is a lot more one thing I learned a long time ago when I mean with the first time an Under Armour logo popped up on the front cover of a US Today’s sports page and I thought I was walking the office and the place to be flooded with orders it’s just not the way it goes.”

What an awesome quote

“And so brands are built on consistency, consistency is built in trust and trust is built in drops and is lost in buckets.”