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.”