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.”