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”