Under Armour 2005 Annual Report Download - page 8

variety of tops and bottoms in a broad array of colors and styles for wear in the gym or outside in warm weather,
making it our top-selling year-round gearline. Compression fit HeatGear, which is designed to reduce muscle
fatigue, is particularly popular for training sessions and competition.
ColdGear Because athletes sweat in cold weather as well as in the heat, ColdGear is designed to wick
moisture from the body while circulating body heat from hotspots to help maintain core body temperature. Our
ColdGear apparel provides both dryness and warmth in a single light layer that can be worn beneath a jersey,
uniform, protective gear or ski-vest and our ColdGear outerwear products protect the athlete (and the coach, fan
and others) from the outside in. Our ColdGear product offerings generally sell at higher price levels.
AllSeasonGear AllSeasonGear is designed to be worn in changing temperatures and uses technical fabrics to
keep the wearer cool and dry in warmer temperatures while preventing a chill in cooler temperatures.
Performance Bags, Socks and Headwear Our bags, socks and headwear are designed to be used and worn
before, during and after competition, and feature performance advantages and functionality similar to our other
product offerings. We work with our licensees to develop accessories, including baseball caps, knit caps, visors,
socks and performance bags. We currently have agreements with two accessory licensees: Moretz Sports
manufactures performance socks under the Under Armour brand, and JR286 manufactures Under Armour hats,
bags and wristbands. Under Armour product, marketing and sales teams are actively involved in all steps of the
design process in order to maintain brand standards and consistency.
Gloves Our baseball batting gloves and football gloves are offered within our HeatGear and ColdGear lines
and are designed with advanced fabrications to provide the same level of performance as our other products. Our
gloves provide moisture management, a secure fit, durability, protection and a better grip for the athlete.
We intend to enter the footwear market with a line of football cleats that we expect to offer for the fall 2006
season and a line of baseball cleats that we expect to offer for the spring 2007 season.
Marketing and Promotion
Our performance products are designed for use in a variety of sports and other activities. We currently focus
on marketing and selling our products to consumers for use in athletics and outdoor activities. We maintain strict
control over our brand image with an in-house marketing and promotions department that designs and produces
all of our advertising campaigns. We seek to drive consumer demand for our products by building brand identity
and awareness, as a leading performance alternative to cotton and non-performance apparel and footwear.
Sports Marketing
Our marketing and promotion efforts begin with a strategy of selling our products to high performing
athletes and teams on the collegiate and professional levels. We implement this strategy through collegiate
sponsorships, individual athlete agreements, and by selling our products directly to team equipment managers
and to individual athletes. As a result, our uniforms, batting gloves, socks and other items of apparel are seen on
the field, giving our products exposure to various consumer audiences, through television, magazines and live at
sporting events. This exposure to consumers helps us establish on-field authenticity as consumers can see our
products being worn by high-performing athletes. We are the official uniform supplier of the University of
Maryland football team and the official outfitter of the Auburn University athletic program. We supply uniforms,
sideline apparel and fan gear for these teams. We also have sponsorship agreements with a limited number of
individual athletes. While our roster of athletes has included established stars, like LaVar Arrington, Jake
Plummer and Martina Navratilova, our strategy has been and continues to be to find the next generation of stars,
like 2005 tennis player Robby Ginepri, Major League Baseball (“MLB”) player Lance Berkman and 2005 MLB
All-Star Alfonso Soriano. In addition to individual athletes, we sell our products to teams domestically including
professional football teams and Division I men’s and women’s collegiate athletic teams, including many of the
117 Division I college football programs. We are a licensee of the National Hockey League, and an official
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