Under Armour 2009 Annual Report Download - page 3

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Kevin A. Plank
Chief Executive Offi cer and
Chairman of the Board of Directors, Under Armour, Inc.
FINANCIAL DISCIPLINE
Strengthened our balance sheet
by increasing Cash and Cash
Equivalents through Working
Capital effi ciency.
PROTECT THIS HOUSE® I WILL
Launched latest campaign by
refreshing our signature “PROTECT
THIS HOUSE®” mantra to bring
more athletes into the Brand.
Humble & Hungry,
see in this key global category. But we were not satisfi ed with our effort
in 2009 and – as we always do at Under Armour – we learn, we correct
and we move forward.
We have three goals for our footwear products in 2010: First, excel
in the categories where we already have very signifi cant market share.
Our plan is to continue to grow our market share in both football and
baseball cleats in 2010 and beyond. Second, we are repositioning our
training and running categories so we are better organized to develop
product that will move us down the path of being a multi-billion dollar
global brand. And third, we are developing new footwear categories
that will begin to impact our business in the future. For example, we are
developing our Basketball footwear, intensely focused on building and
testing product on top teams and athletes like NBA Rookie of the Year
contender Brandon Jennings.
Importantly, we are taking a balanced approach to our net revenue
growth in Footwear. We understand what it takes to make great products
for athletes and we have added signifi cant depth to our Footwear team,
which will help focus our energy on making great shoes for athletes.
On the operational side of our business, 2009 was a year where we
focused on improving our inventory position, strengthening our balance
sheet and improving our working capital effi ciency. Total cash and cash
equivalents increased over $85 million year-over-year to $187 million
at year-end. Cash, net of debt, increased $111 million to $167 million
at year-end.
From the NFL and college fi elds to the Vancouver Winter Olympics
and all the way down to the local middle school soccer fi eld, the Under
Armour Brand has never been stronger and more ingrained in the fabric
of American sports. We view 2009 as a year of progress towards our
BOSTON COLLEGE
Signed agreement to become Offi cial
Outfi tter of Boston College Athletics.
2010 WINTER OLYMPICS
Outfi tted several Olympic
medalists including Lindsey Vonn,
the U.S. Bobsled Team, and
U.S. Freestyle Ski Team.
INNOVATION
Brought innovation to life with
products like our Recharge™ Energy
Suit, ARMOURBITE™ mouthwear, and
UA Coreshorts.
UA GREEN™
Introduced initiative aimed at
lightening our environmental impact,
starting with performance apparel
built from recycled plastic bottles.
OUR DIRECT-TO-CONSUMER SALES CHANNEL GREW NEARLY 50% IN 2009
goal of making Under Armour a multi-billion dollar global brand. But we
are not satisfi ed. Whether it’s innovating to help athletes perform their
best, developing the team that will drive our growth, or moving our Brand
into new categories and geographies, we are a driven organization.
We advanced the ball in 2009 and are better positioned than ever to
deliver against the promise of the Under Armour Brand.
When the University of South Carolina and the University of Maryland
college football teams lined up on a Saturday in November wearing
Under Armour uniforms honoring the Wounded Warrior Project, our
Brand contributed to the moment. That same night, Brandon Jennings
– wearing Under Armour footwear – scored 55 points on the NBA hard
court, and our Brand was with him step for step. And when the US
four-man bobsleigh took home the Olympic gold medal in Vancouver
wearing the aerodynamic uniforms our team built, our Brand became
part of that moment in history.
The exhilaration of moments like these is what drives us as a team. We
are fortunate that our promise to make all athletes better constantly puts
us on the fi eld where these moments happen. As we look forward to
more experiences like these in 2010 and beyond, I have never been
more confi dent that the investments we have made in infrastructure,
people and product will solidify our position as THE Athletic Brand of
THIS Generation. And NEXT.
WE VIEW 2009 AS A YEAR OF PROGRESS TOWARDS OUR GOAL OF MAKING UNDER
ARMOUR® A MULTI-BILLION DOLLAR GLOBAL BRAND. BUT WE ARE NOT SATISFIED.