Under Armour 2008 Annual Report Download - page 9

PART I
ITEM 1. BUSINESS
General
Our principal business activities are the development, marketing and distribution of branded performance
apparel, footwear and accessories for men, women and youth. The brand’s moisture-wicking synthetic
fabrications are engineered in many designs and styles for wear in nearly every climate to provide a performance
alternative to traditional natural fiber products. Our products are sold worldwide and are worn by athletes at all
levels, from youth to professional, on playing fields around the globe, as well as consumers with active lifestyles.
Our revenues are generated primarily from wholesale distribution of our products to national, regional,
independent and specialty retailers. We also derive revenue from product licensing and from the sale of our
products through our direct to consumer sales channel including our retail outlet and specialty stores, website and
catalogs. Our products are offered in over 17,000 retail stores worldwide. A large majority of our products are
sold in North America; however we believe that our products appeal to athletes and consumers with active
lifestyles around the globe. Internationally, we sell our products primarily in the United Kingdom, France and
Germany, a third party licensee sells our products in Japan, and distributors sell our products in other foreign
countries. We plan to continue to grow our business over the long term through our United States wholesale
apparel distribution primarily through sales of men’s and women’s apparel products, the opportunities available
in the athletic footwear market, the expansion of our presence in overseas markets and a stronger direct to
consumer sales channel. Virtually all of our products are manufactured by unaffiliated manufacturers operating
in primarily 12 countries outside of the United States.
We were incorporated as a Maryland corporation in 1996. As used in this report, the terms “we,” “our,”
“us,” “Under Armour” and the “Company” refer to Under Armour, Inc. and its subsidiaries unless the context
indicates otherwise. We have registered trademarks around the globe, including UNDER ARMOUR®,
HEATGEAR®, COLDGEAR®, ALLSEASONGEAR®, LOOSEGEAR®and the Under Armour UA Logo, and
we have applied to register many other trademarks. This Annual Report on Form 10-K also contains additional
trademarks and tradenames of our Company and other companies. All trademarks and tradenames appearing in
this Annual Report on Form 10-K are the property of their respective holders.
Products
Our product offerings consist of apparel, footwear and accessories for men, women and youth. We market
our products at multiple price levels and provide all consumers with what we believe to be a superior alternative
to cotton and other traditional products. In 2008, sales of apparel, footwear and accessories represented
approximately 80%, 12%, and 4% of net revenues, respectively. Licensing arrangements for the sale of apparel
and accessories represented 4% of net revenues. See Note 16 to the Consolidated Financial Statements for net
revenues by product.
Apparel
Our apparel is offered in a variety of styles and fits intended to reduce friction, enhance comfort and
mobility, regulate body temperature and improve performance regardless of weather conditions. Our apparel
products are engineered to replace cotton and other traditional non-performance fabrics in the world of athletics
and fitness with performance alternatives designed and merchandised along gearlines. Our three primary apparel
gearlines are marketed to tell a very simple story about our highly technical products and extend across the
sporting goods, outdoor and active lifestyle markets. We market our apparel for consumers to choose
HEATGEAR®when it is hot, COLDGEAR®when it is cold and ALLSEASONGEAR®between the extremes.
Within each gearline our apparel comes in three fit types: compression (tight fitting), fitted (athletic cut) and
loose (relaxed).
1