Under Armour 2014 Annual Report Download - page 46

N
et revenues in our North American operating segment increased
$
467.0 million to
$
2,193.7 million i
n
2013 from
$
1,726.7 million in 2012 primarily due to the items discussed above in the Consolidated Results o
f
Operations. Net revenues in other foreign countries and businesses increased by
$
30.1 million to
$
138.3 million
in 2013 from
$
108.2 million in 2012 primarily due to unit sales growth in our EMEA and Asia operating
segments and to distributors in our Latin American operating segment
.
O
perating income (loss) by segment is summarized below:
Y
ear Ended December 31
,
(
In t
h
ousan
d
s
)
201
3
2
0
1
2
$
Change % Chang
e
N
orth America
$
271,338
$
200,084
$
71,254 35.6%
Other foreign countries and businesses (6,240) 8,611 (14,8
5
1) (172.
5
)
T
otal operatin
g
income
$
265,098
$
208,695
$
56,403 27.0
%
Operatin
g
income in our North American operatin
g
se
g
ment increased
$
71.2 million to
$
271.3 million in
2013 from
$
200.1 million in 2012 primarily due to the items discussed above in the Consolidated Results o
f
Operations. Operating income (loss) in other foreign countries and businesses decreased by
$
14.8 million to
$
(6.2) million in 2013 from
$
8.6 million in 2012 primarily due to our continued investment to support our
i
nternat
i
ona
l
expans
i
on
i
n our EMEA, As
i
aan
d
Lat
i
n Amer
i
can operat
i
ng segments. Investments
i
n 2013
p
r
i
mar
il
y
i
nc
l
u
d
et
h
e open
i
ng o
fb
ran
d
an
df
actory
h
ouse stores
i
nC
hi
na an
d
o
ffi
ces an
ddi
str
ib
ut
i
on
f
ac
ili
t
i
es
i
n
B
raz
il
an
d
C
hil
e, a
l
ong w
i
t
hhi
g
h
er personne
l
costs an
di
ncent
i
ve compensat
i
on
.
S
easonality
H
i
stor
i
ca
ll
y, we
h
ave recogn
i
ze
d
ama
j
or
i
ty o
f
our net revenues an
d
as
i
gn
ifi
cant port
i
on o
f
our
i
ncome
f
rom
o
perat
i
ons
i
nt
h
e
l
ast two quarters o
f
t
h
e year,
d
r
i
ven pr
i
mar
il
y
b
y
i
ncrease
d
sa
l
es vo
l
ume o
f
our pro
d
ucts
d
ur
i
n
g
t
h
e
f
a
ll
se
lli
ng season,
i
nc
l
u
di
ng our
hi
g
h
er pr
i
ce
d
co
ld
weat
h
er pro
d
ucts, a
l
ong w
i
t
h
a
l
arger proport
i
on o
f
hi
g
h
er marg
i
n
di
rect to consumer sa
l
es. T
h
e
l
eve
l
o
f
our wor
ki
ng cap
i
ta
l
genera
ll
yre
fl
ects t
h
e seasona
li
ty an
d
growt
hi
n our
b
us
i
ness. We genera
ll
y expect
i
nventory, accounts paya
bl
ean
d
certa
i
n accrue
d
expenses to
be
hi
g
h
er
i
nt
h
e secon
d
an
d
t
hi
r
d
quarters
i
n preparat
i
on
f
or t
h
e
f
a
ll
se
lli
ng season
.
T
h
e
f
o
ll
ow
i
ng ta
bl
e sets
f
ort
h
certa
i
n
fi
nanc
i
a
li
n
f
ormat
i
on
f
or t
h
e per
i
o
d
s
i
n
di
cate
d
.T
h
e
d
ata
i
s prepare
d
o
n
t
h
e same
b
as
i
sast
h
eau
di
te
d
conso
lid
ate
dfi
nanc
i
a
l
statements
i
nc
l
u
d
e
d
e
l
sew
h
ere
i
nt
hi
s Form 10-K. A
ll
r
ecurr
i
ng, necessary a
dj
ustments are re
fl
ecte
di
nt
h
e
d
ata
b
e
l
ow
.
Q
uarter Ended (unaudited)
(
In t
h
ousan
d
s
)
Mar 31
,
2013
Jun 30,
2
01
3
S
ep 30,
2013
D
ec 31,
201
3
M
ar 31,
20
1
4
Jun 30
,
2
0
1
4
S
ep 30
,
2
0
14
Dec 31
,
20
1
4
Net revenues
$
471,608
$
454,541
$
723,146
$
682,756
$
641,607
$
609,654
$
937,908
$
895,201
Gross
p
rofit 216,551 219,631 350,135 350,353 300,690 299,952 465,300 446,264
Marketin
g
SG&A expenses 62,841 48,952 74,175 60,521 87,977 70,854 99,756 74,462
Other SG&A ex
p
enses 140,218 138,369 155,131 191,365 185,857 194,404 219,438 225,50
3
Income from o
p
erations 13,492 32,310 120,829 98,467 26,856 34,694 146,106 146,299
(
As a
p
ercentage o
f
annua
l
tota
l
s)
Net revenues 20.2% 19.5% 31.0% 29.3% 20.8% 19.8% 30.4% 29.0%
Gross
p
rofit 19.1% 19.3% 30.8% 30.8% 19.9% 19.8% 30.8% 29.5%
Marketin
g
SG&A expenses 25.4% 19.9% 30.1% 24.6% 26.4% 21.3% 29.9% 22.4%
Other SG&A ex
p
enses 22.4% 22.2% 24.8% 30.6% 22.5% 23.6% 26.6% 27.3
%
Income from o
p
erations 5.1% 12.2% 45.6% 37.1% 7.6% 9.8% 41.3% 41.3%
36