Under Armour 2013 Annual Report Download - page 4

We have a mission: To Make All Athletes Better. Since
1996, this has not only been what we do but it has been
who we are, and this philosophy will take us to greater
heights in the years to come. Under Armour began with
an innovative product that struck a chord with consum-
ers who had a need. It was a better T-Shirt—one that
could wick sweat and keep athletes dry, comfortable
and light. Eighteen years
later, we are far more than
a T-shirt company; we are
a fully integrated, global
athletic brand rooted in in-
novation and we still use
the same philosophy to win:
Make Athletes Better. With
27% revenue growth in 2013,
the scoreboard shows our
game plan is working and
we are winning. Net revenues surpassed $2.3 billion as
we delivered more than 20% top line growth for the 15th
consecutive quarter.
In 2013, three drivers pushed the mission forward, and
continue to position Under Armour for growth in the
future: continued innovation, global expansion, and the
acquisition of MapMyFitness. Our customers expect new-
ness and innovative ideas from us and we rose to the chal-
lenge in 2013. We enhanced and expanded our platforms
to continue to grow with our athletes as their preferences
move into new categories and end uses for our products.
e strong, continued growth in our core North Ameri-
can business gave us the firepower to continue building
the infrastructure and foundation for international ex-
pansion. In 2014, we are positioned to tell our story in an
authentic and relevant way to consumers around the world,
as we reach more athletes than ever before. e next big
story we’re pioneering is what we call “Connected Fitness,”
which we took another major step towards growing with
our acquisition of MapMyFitness. is puts us in a great
position to design open, digital products for the athlete
of tomorrow and provide solutions that will help people
across the world lead healthier lives. Connected Fitness is
growing rapidly and we are positioning Under Armour to
be the leader in this space.
Innovation is about creating new platform technolo-
gies like Charged Cotton®, UA Storm, or our latest, Cold-
Gear® Infrared – none
of which existed prior
to 2011. It’s also about
reinventing and improv-
ing the performance of
our legacy platforms
like HeatGear® or part-
nering with DC Comics
and Marvel Entertain-
ment on our Under Armour Alter Ego superhero lines.
Brands are built on trust. at trust is earned in drops
and lost in buckets. Our approach to incorporate innova-
tion into new and existing products is how we continue to
build brand equity and trust with our consumer.
As we continue to innovate in Footwear, we are putting
more and more points on the board. Industry leading plat-
forms like the UA Highlight Cleat helped us gain market
share in football and baseball, and we completely changed
how kids dressed on field! Our latest innovation in run-
ning – UA SpeedForm™ – leverages our DNA in apparel
to deliver what consumers have come to expect from our
brand: innovation around
fit. Competitor Magazine
named UA SpeedForm
the “Best Innovation” in
2013, and Runner’s World
2014 Spring Shoe Guide
awarded UA SpeedForm™
Apollo “Best Debut”. is
is the first true performance
running shoe made entirely
in a clothing factory and is
a game-changing innovation that has unlimited poten-
tial. Beyond running, we are building authenticity on the
court and on the pitch, and we are just getting started!
Our constant innovation helps drive our core busi-
ness, and in 2013 we successfully got out our message
and helped drive sales by telling our story in a new way to
complement our new products. e world heard a louder,
more impactful voice during our Global Brand Holidays.
We delivered three holidays during the year and rallied
behind the right stories at the right time to maximize the
impact of our voice across all channels. We continued
this strategy in early 2014 when we rang the NYSE bell
and took over Grand Central Terminal's Vanderbilt Hall
in New York City in the days leading up to the Super
Bowl to showcase our latest innovations: UA SpeedForm
Apollo running shoes and ArmourVent™ apparel.
Leveraging our ever increasing brand recognition, in
2013 we continued to expand and invest in partnerships that
make Under Armour visible, again helping to drive a strong
year for our business. We became the official supplier for the
U.S. women's and men's gymnastics teams, and we recently
extended our partnership with the U.S. speedskating team.
We partnered with the NFL and GE to form Head Health
Challenge II – an open innovation competition that will
award up to $10 million for innovations and materials that
help protect against traumatic brain injuries, as well as tools
for tracking head impacts in real time. Most recently, we
announced game-changing
partnerships with the Uni-
versity of Notre Dame and
the U.S. Naval Academy.
ese partnerships not
only enhance our connec-
tion with consumers, but
strengthen our long-stand-
ing relationships with key
sporting-goods partners. is is the foundation of our North
American business and will continue to be a focus in 2014. It
includes key growth areas like Women’s apparel, where we
topped $500 million in net revenues in 2013, and Youth
apparel, which more than doubled the growth rate of both
NET REVENUES BY DISTRIBUTION
YEAR 2013
WHOLESALE 67.2%
DIRECT TO CONSUMER 30.4%
LICENSING & OTHER 2.4%
NET REVENUES BY PRODUCT
CATEGORY YEAR 2013
APPAREL 75.6%
FOOTWEAR 12.8%
ACCESSORIES 9.2%
LICENSING & OTHER REVENUES 2.4%
LIMITED EDITION UNDER ARMOUR® ALTER EGO HIGHLIGHT CLEAT
KEVIN PLANK & NFL COMMISSIONER ROGER GOODELL
AT UNDER ARMOUR’S GLOBAL HEADQUARTERS IN BALTIMORE, MD.