Under Armour 2012 Annual Report Download - page 11

Download and view the complete annual report

Please find page 11 of the 2012 Under Armour annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 96

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96

We are the official outfitter of athletic teams in several high-profile collegiate conferences, and since 2006
we have been an official supplier of footwear to the National Football League (“NFL”). In 2010, we signed an
agreement to become an official supplier of gloves to the NFL beginning in 2011 and we are the official combine
scouting partner to the NFL with the right to sell combine training apparel beginning in 2012. In addition, in
2011 we became the Official Performance Footwear Supplier of Major League Baseball, as well as becoming a
partner with the National Basketball Association (“NBA”) which allows us to market our NBA athletes in game
uniforms in connection with our basketball footwear starting with the 2011/2012 season.
Internationally, we are providing and selling our products to European soccer and rugby teams. Beginning
with the 2012 season, we provide the Tottenham Hotspur Football Club with performance apparel, including
training wear and playing kit for the Club’s First and Academy teams, together with replica product for the
Club’s supporters around the world. We’re the official technical kit supplier to the Welsh Rugby Union and have
exclusive retail rights on the replica products.
We also seek to sponsor events to drive awareness and brand authenticity from a grassroots level. We host
combines, camps and clinics for many sports at regional sites across the country for male and female athletes.
These events, along with the products we make, are designed to help young athletes improve their training
methods and their overall performance. We are also the title sponsor of a collection of high school All-America
Games that create significant on-field product and brand exposure that contributes to our on-field authenticity.
Media
We feature our products in a variety of national digital, broadcast, out-of-home and print media outlets. We
also utilize social marketing to engage consumers and promote conversation around our brand and our products.
Retail 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.
Sales and Distribution
The majority of our sales are generated through wholesale channels which include national and regional
sporting goods chains, independent and specialty retailers, department store chains, institutional athletic
departments and leagues and teams. In addition, we sell our products to independent distributors in various
countries where we generally do not have direct sales operations and through licensees.
We also sell our products directly to consumers through our own network of specialty and factory house
stores in our North American Operating Segment, and through our website operations in the United States,
Canada and certain countries in Europe. These factory house stores serve an important role in our overall
inventory management by allowing us to sell a significant portion of excess, discontinued and out-of-season
products while maintaining the pricing integrity of our brand in our other distribution channels. Through our
specialty stores, consumers experience our brand first-hand and have broader access to our performance
products. In 2012, sales through our wholesale, direct to consumer and licensing channels represented 69%, 29%
and 2% of net revenues, respectively.
We operate in four geographic segments: (1) North America, (2) Europe, the Middle East and Africa
(“EMEA”), (3) Asia, and (4) Latin America. Each geographic segment operates predominantly in one industry:
the design, development, marketing and distribution of performance apparel, footwear and accessories. While our
3