Under Armour 2006 Annual Report Download - page 10

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 than our
other gearlines.
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.
Footwear. Our line of football cleats was first available for sale in retail stores in June 2006, in time for the
fall 2006 season. Consistent with our performance apparel marketing and pricing strategy, we offered our
football cleats at various price levels, thereby enabling us to reach a broader consumer base. We also began
shipping our line of baseball and softball cleats in the fourth quarter of 2006 for the spring 2007 season.
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 accessory licensees, including Moretz Sports,
which manufactures performance socks under the Under Armour brand, and JR286, which 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. Net revenues generated from the
sale of performance bags, socks and headwear are primarily included in our licensing revenues product category.
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. Net
revenues generated from the sale of gloves are included in our accessories product category.
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 professional and 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, footwear 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 and Texas Tech football teams and the official outfitter of the Auburn University athletic program. We
supply uniforms, sideline apparel and fan gear for these teams. Under Armour also signed an agreement in August
2006 to be an official supplier of footwear to the National Football League (NFL), a step we took to complete the
circle of authenticity from the Friday night lights of high school to Saturday afternoon college game day to the
marquee Sunday match-ups of the NFL. This agreement enables NFL players to wear Under Armour footwear on
the field and enables Under Armour to reach fans at the highest level of competitive football.
We also have sponsorship agreements with a limited number of individual athletes. While our roster of
athletes has included established stars, like Julius Jones, Alfonso Soriano and Heather Mitts, our strategy has
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