Under Armour 2010 Annual Report Download - page 12

We are the title sponsor of The Under Armour (Baltimore) Marathon and we have a strong brand presence
at several other major running events across the country. We are also the title sponsor of The Under Armour
All-America Lacrosse Classic, as well as the All-America games in softball and volleyball for elite high school
athletes. We believe these relationships create significant on-field product and brand exposure that contributes to
our on-field authenticity.
Media and Promotion
We feature our products in a variety of national digital, broadcast, and print media outlets. Our media
campaigns run in a variety of lengths and formats and have included our signature “Protect this House” and
“Click-Clack” campaigns featuring several NFL players. Our “Protect this House” campaign continues to be used
in several NFL and collegiate stadiums during games as a crowd prompt. Our ability to secure product placement
in movies, television shows and video games has allowed us to reinforce our authenticity as well as establish our
brand with broader audiences who may not otherwise be exposed to our advertising and brand efforts. In 2010,
we returned to a version of our signature campaign with “Protect this House.®I Will.” This campaign focused
heavily on the training aspect of sports, which we believe is at the core of today’s athletes’ performance and
improvement.
Retail Marketing and Product Presentation
The primary component of our retail marketing strategy is to increase and brand floor space dedicated to our
products within our major retail accounts. The design and funding of Under Armour concept shops within our
major retail accounts has been a key initiative for securing prime floor space, educating the consumer and
creating an exciting environment for the consumer to experience our brand. Under Armour concept shops
enhance our brand’s presentation within our major retail accounts with a shop-in-shop approach, using dedicated
floor space exclusively for our products, including flooring, lighting, walls, displays and images.
Across our many retailers, factory house and specialty stores we also use in-store fixtures and displays that
highlight our logo and have a performance-oriented, athletic look. We believe our in-store fixtures and displays,
including our life-size athlete mannequins, are exciting and unique. These displays provide an easily identifiable
place for consumers to look for our products and are intended to reinforce the message that our brand is distinct
from our competitors. We work with our retailers to establish optimal placement for our products and to have the
brand represented in the many departments of our large national or regional retail chains.
Customers
Our products are offered in over twenty three thousand retail stores worldwide, of which nearly sixteen
thousand retail stores are in North America. We also sell our products directly to consumers through our own
factory house and specialty stores, website and catalogs.
Wholesale Distribution
In 2010, 73% of our net revenues were generated from wholesale distribution. Our principal customers
located in the United States include national and regional retail chains such as, in alphabetical order, Academy
Sports and Outdoors, Dick’s Sporting Goods, Hibbett Sporting Goods, Modell’s Sporting Goods, and The Sports
Authority; hunting and fishing, mountain sports and outdoor retailers such as Bass Pro Shops and Cabela’s; and
The Army and Air Force Exchange Service. Our principal customers located in Canada include national retail
chains such as Sportchek International and Sportman International. In 2010, our two largest customers were, in
alphabetical order, Dick’s Sporting Goods and The Sports Authority. These two customers accounted for a total
of 27% of our net revenues in 2010, and one of these customers individually accounted for at least 10% of our
net revenues in 2010.
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