Under Armour 2007 Annual Report Download - page 12

HEATGEAR®is designed to be worn in warm to hot temperatures under equipment or as a single layer. Our
first compression T-shirt was the original HEATGEAR®product and remains our signature style. While a sweat-
soaked cotton T-shirt can weigh two to three pounds, HEATGEAR®is engineered with a microfiber blend
designed to wick moisture from the body which helps the body stay cool, dry and light. We offer HEATGEAR®
in a variety of tops and bottoms in a broad array of colors and styles for wear in the gym or outside in warm
weather.
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 prices
than our other gearlines.
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
We offer performance cleats primarily for use in football, baseball and softball. Our line of football cleats
was first available for sale in retail stores in June 2006. We began shipping our line of baseball and softball cleats
in the fourth quarter of 2006 for the spring 2007 season. Our footwear products are light, breathable and built to
perform for the athlete. Our footwear is created with unique technologies including key traction elements and
moisture management. Consistent with our performance apparel marketing and pricing strategy, we offer our
cleated footwear at multiple price levels, thereby enabling us to reach a broader consumer base. New product
offerings in 2008 will include non-cleated footwear, with the introduction of performance training footwear in
May 2008.
Other Products
Our baseball batting, football, golf and running 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 the athlete with moisture management, a secure fit, durability, protection and
a tactified palm for better grip. Net revenues generated from the sale of baseball batting, football, golf and
running gloves are included in our accessories product category.
Our bags, socks, headwear, eyewear and watches 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 these products. We currently have agreements with licensees, including
JR286, which manufactures Under Armour hats, bags and wristbands; GoldToeMoretz, which manufactures
performance socks; Eyeking LLC, which manufacturers Under Armour eyewear; and Geneva Watch Group,
which manufacturers Under Armour watches. 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, headwear, eyewear and watches are primarily included in
our license revenues.
Marketing and Promotion
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, footwear and other products.
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