Under Armour 2014 Annual Report Download - page 20

•
our potential exposure to litigation and other proceedings; and
•
our ability to attract and retain the services of our senior management and key employees
.
T
h
e
f
orwar
d
-
l
oo
ki
n
g
statements conta
i
ne
di
nt
hi
s Form 10-K re
fl
ect our v
i
ews an
d
assumpt
i
ons on
ly
as o
f
t
h
e
d
ate o
f
t
hi
s Form 10-K. We un
d
erta
k
enoo
blig
at
i
on to up
d
ate an
yf
orwar
d
-
l
oo
ki
n
g
statement to re
fl
ect event
s
o
rc
i
rcumstances a
f
ter t
h
e
d
ate on w
hi
c
h
t
h
e statement
i
sma
d
eortore
fl
ect t
h
e occurrence o
f
unant
i
c
i
pate
d
e
v
en
t
s
.
O
ur results of operations and financial condition could be adversely affected by numerous risks. You
s
hould carefully consider the risk factors detailed below in con
j
unction with the other information containe
d
i
n this Form 10-K. Should any of these risks actually materialize, our business, financial condition and future
prospects could be negatively impacted.
D
urin
g
a downturn in the economy, consumer purchases of discretionary items are affected, which could
materiall
y
harm our sales,
p
rofitabilit
y
and financial condition
.
M
an
y
o
f
our pro
d
ucts ma
yb
e cons
id
ere
ddi
scret
i
onar
yi
tems
f
or consumers. Factors a
ff
ect
i
n
g
t
h
e
l
eve
l
o
f
consumer spen
di
n
gf
or suc
hdi
scret
i
onar
yi
tems
i
nc
l
u
d
e
g
enera
l
econom
i
c con
di
t
i
ons, t
h
e ava
il
a
bili
t
y
o
f
consumer cre
di
tan
d
consumer con
fid
ence
i
n
f
uture econom
i
c con
di
t
i
ons. Uncerta
i
nt
yi
n
gl
o
b
a
l
econom
ic
con
di
t
i
ons cont
i
nues, an
d
tren
d
s
i
n consumer
di
scret
i
onar
y
spen
di
n
g
rema
i
n unpre
di
cta
bl
e. However, consumer
p
urc
h
ases o
fdi
scret
i
onar
yi
tems ten
d
to
d
ec
li
ne
d
ur
i
n
g
recess
i
onar
y
per
i
o
d
sw
h
en
di
sposa
bl
e
i
ncome
i
s
l
ower o
r
d
ur
i
n
g
ot
h
er per
i
o
d
so
f
econom
i
c
i
nsta
bili
t
y
or uncerta
i
nt
y
.A
d
ownturn
i
nt
h
e econom
yi
n mar
k
ets
i
nw
hi
c
h
we
se
ll
our pro
d
ucts ma
y
mater
i
a
lly h
arm our sa
l
es, pro
fi
ta
bili
t
y
an
dfi
nanc
i
a
l
con
di
t
i
on.
If
the
fi
nanc
i
al cond
i
t
i
on o
f
our reta
i
l customers decl
i
nes, our
fi
nanc
i
al cond
i
t
i
on and results o
f
o
p
erat
i
on
s
could be adversel
yi
m
p
acted.
We extend credit to our customers based on an assessment of a customer’s financial condition, generally
without requiring collateral. We face increased risk of order reduction or cancellation when dealing with
f
inancially ailing customers or customers struggling with economic uncertainty. During weak economic
conditions, retail customers may be more cautious with orders. In addition, a slowing economy in our key
markets or a continued decline in consumer purchases of sporting goods generally could have an adverse effec
t
o
n the financial health of our retail customers, which could in turn have an adverse effect on our sales, our abilit
y
to collect on receivables and our financial condition
.
A decl
i
ne
i
n sales to, or the loss o
f
, one or more o
f
our key customers could result
i
n a mater
i
al loss o
f
net
r
evenues and negat
i
vely
i
mpact our prospects
f
or growth.
I
n 2014, approx
i
mate
l
y 14.4% o
f
our net revenues were generate
df
rom sa
l
es to our
l
argest customer. We
current
l
y
d
o not enter
i
nto
l
ong term sa
l
es contracts w
i
t
h
t
hi
s customer or our ot
h
er
k
ey customers, re
l
y
i
n
g
i
nstea
d
on our re
l
at
i
ons
hi
ps w
i
t
h
t
h
ese customers an
d
on our pos
i
t
i
on
i
nt
h
e mar
k
etp
l
ace. As a resu
l
t, we
f
ace t
he
ri
s
k
t
h
at t
h
ese
k
ey customers may not
i
ncrease t
h
e
i
r
b
us
i
ness w
i
t
h
us as we expect, or may s
i
gn
ifi
cant
l
y
d
ecreas
e
t
h
e
i
r
b
us
i
ness w
i
t
h
us or term
i
nate t
h
e
i
rre
l
at
i
ons
hi
pw
i
t
h
us. T
h
e
f
a
il
ure to
i
ncrease our sa
l
es to t
h
ese customers
as muc
h
as we ant
i
c
i
pate wou
ld h
ave a negat
i
ve
i
mpact on our growt
h
prospects an
d
any
d
ecrease or
l
oss o
f
t
h
es
e
k
ey customers’
b
us
i
ness cou
ld
resu
l
t
i
n a mater
i
a
ld
ecrease
i
n our net revenues an
d
net
i
ncome
.
I
f we continue to
g
row at a rapid pace, we may not be able to effectively mana
g
e our
g
rowth and the
increased complexity of a
g
lobal business and as a result our brand ima
g
e, net revenues and profitability
may decline.
We
h
ave expan
d
e
d
our operat
i
ons rap
idly
s
i
nce our
i
ncept
i
on an
d
our net revenues
h
ave
i
ncrease
d
to
$
3,084.4 million in 2014 from $1,063.9 million in 2010. If our operations continue to
g
row at a rapid pace, w
e
ma
y
exper
i
ence
diffi
cu
l
t
i
es
i
no
b
ta
i
n
i
n
g
su
ffi
c
i
ent raw mater
i
a
l
san
d
manu
f
actur
i
n
g
capac
i
t
y
to pro
d
uce ou
r
10