Under Armour 2011 Annual Report Download - page 15

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Other Foreign Countries
Only 6% of our net revenues were generated outside of North America in 2011. We believe the future
success of our brand is dependent on developing our business outside of North America.
EMEA
We sell our apparel, footwear and accessories to approximately four thousand retail stores and through our
websites in certain European countries. We also sell our apparel, footwear and accessories to independent
distributors in various European countries where we do not have direct sales operations. In addition, we sell our
branded products to soccer, running and golf clubs in the United Kingdom, soccer teams in France, Germany,
Greece, Ireland, Italy, Spain and Sweden, as well as First Division Rugby clubs in France, Ireland, Italy and the
United Kingdom. Beginning in 2012, we will sell the Tottenham Hotspur Football Club replica product for the
Club’s supporters around the world.
We generally distribute our products to our retail customers and e-commerce consumers in EMEA through a
third-party logistics provider based out of Venlo, The Netherlands. This agreement continues until April 2013.
Asia
Since 2002 we have had a license agreement with Dome Corporation, which produces, markets and sells our
branded apparel, footwear and accessories in Japan. We are actively involved with this licensee to develop
variations of our products for the different sizes, sports interests and preferences of the Japanese consumer. Our
branded products are now sold in Japan to professional sports teams, including Omiya Ardija, a professional
soccer club in Saitama, Japan, as well as baseball and other soccer teams, and to over twenty five hundred
independent specialty stores and large sporting goods retailers. We made a cost-based minority investment in
Dome Corporation in January 2011.
We also sell our apparel, footwear and accessories to independent distributors in Australia and New Zealand
where we do not have direct sales operations.
During 2011, we opened our first specialty store in Shanghai, China to begin to learn about the Chinese
consumer. We generally distribute our products to our retail customers in Asia through a third-party logistics
provider based out of Hong Kong.
Latin America
We sell to Latin American consumers through independent distributors in Latin American countries where
we do not have direct sales operations. We generally distribute our products to these independent distributors
through our distribution facilities in the United States.
Seasonality
Historically, we have recognized a significant portion of our income from operations in the last two quarters
of the year, driven primarily by increased sales volume of our products during the fall selling season, reflecting
our historical strength in fall sports, and the seasonality of our higher priced COLDGEAR®line. The majority of
our net revenues were generated during the last two quarters in each of 2011, 2010 and 2009. The level of our
working capital generally reflects the seasonality and growth in our business. We generally expect inventory,
accounts payable and certain accrued expenses to be higher in the second and third quarters in preparation for the
fall selling season.
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