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.