Under Armour, Inc.

Sector: Apparel and footwear Countries of operation: Over 100 countries worldwide, with stores in Canada, Chile, China, Mexico, Korea and the US Key product categories: Accessories, footwear and apparel Annual Metrics [caption id="attachment_148356" align="aligncenter" width="700"] Fiscal year ends on December 31. Following a three-month transition period (January 1–March 31, 2022), Under Armour’s fiscal year 2023 will run from April 1, 2022, through March 31, 2023. Consequently, there will be no fiscal year 2022.
*Trailing 12 months ended March 31, 2022[/caption]   Summary Founded in 1996 and headquartered in Baltimore, Maryland, Under Armour is a sportswear company that develops, distributes and markets branded performance apparel, footwear and related products for men, women and children. Its performance apparel and footwear are designed and engineered to suit the needs of athletes. Apparel is the company’s biggest revenue source, accounting for 67.6% of total sales in 2021, followed by footwear at 22.2%. As of December 31, 2021, the company operates 422 stores, located primarily in Canada, Chile, China, Mexico, Korea and the US. Company Analysis Coresight Research insight: Under Armour had a strong fiscal 2021, with sales 7.5% higher than pre-crisis levels. However, the company faced several challenges in early calendar 2022, including ongoing supply chain challenges, Covid-19 uncertainty and inflationary trends. The company expects revenue to increase by 5%–7% in fiscal 2023 versus the comparable baseline period of $5.7 billion. We believe that the single-digit growth rate will be short term, and the company’s continued product innovations, sustainability initiatives, digital marketing investment and collaboration with sports celebrities will fuel growth, driving revenue growth to mid-teens in a post-pandemic world.

Tailwinds	Headwinds
Channel mix favors direct communication with customers Continued product innovation Consumer shift to casual and sports wear	Supply chain pressures, including longer-than-usual transit times as backlogs and congestion find balance, which may create some variability in Under Armour’s sales results Overall inflationary macro environment that may drive raw materials costs higher and put pressure on product costs

  Strategy In 2022, Under Armour continues to pursue to its strategic plan, aiming to focus on the company’s core customer—referred to as “the focused performer”—and elevating the brand with innovation and selective wholesale distribution. Under Armour will also seek to refine its operating model to drive efficiency across all end-to-end processes. 1. Strengthen the brand through increased engagement with “the focused performer”

• Lean more heavily into brand and product marketing to support successful product introductions.
• Promote partnerships—for example, the company has been collaborating with American basketball player Stephen Curry to launch the Curry brand of performance products.

2. Refine its operating model to drive efficiency across all end-to-end processes

• Seek out vendors that can perform multiple manufacturing processes, such as procuring raw materials and providing finished products, in order to help control costs.
• Develop and design products in a 3D digital environment, transitioning to fully digital sampling by 2023.
• Improve its e-commerce platform in North America to better compete in the rapidly evolving digital landscape.
• Refocus its cost structure to ensure it is well positioned, from a strategic, operational and financial perspective with both an appropriate foundation and the agility to scale with future growth.
• Improve visibility and tighter alignment of consumer demand and supply planning functions.

3. Prioritize a consumer-focused approach to elevate brand experience and deepen consumer connections

• Search actively for undifferentiated retail partners, primarily in North America, to more meaningfully reduce its wholesale footprint, starting in 2021 and extending to 2022 and beyond.
• Evolve store concepts to drive more profitable formats, particularly for full-price brand house locations.
• Accelerate e-commerce and tighten wholesale.

4. Drive shareholder value over the long term

• Maintain discipline around profitability to drive sustainable long-term shareholder value, across operating model refinements, the innovation pipeline and brand strategies, as well as tighter inventory management and a refocused cost structure.

Revenue Breakdown (FY21) [caption id="attachment_146777" align="aligncenter" width="700"] Notes: The Corporate Other category accounts less than 0.1% of the company’s revenue and is excluded from the figures.
Source: Company reports[/caption]   Company Developments

Date	Development
June 9, 2022	Under Armour launches its first running shoe for women.
May 18, 2022	Under Armour announces that Patrik Frisk will step down as President and Chief Executive Officer and as a member of the Board of Directors, effective June 1, 2022. Until a successor is named, the Board has appointed Colin Browne, the company's Chief Operating Officer , as interim President and CEO, effective June 1, 2022.
January 17, 2022	Under Armour launches new ‘Sesame Street’ footwear in collaboration with Stephen Curry
December 21, 2021	Under Armour announces launch of a new line of shoes that feature biometric sensors for enhanced run-tracking capabilities.
October 14, 2021	Under Armour appoints Massimo Baratto as Chief Consumer Officer.
May 3, 2021	Under Armour announces the settlement of a previously disclosed Securities and Exchange Commission Matter, resolving an investigation related to the disclosure and impact of certain “pull forward” sales for the third quarter of 2015 through the fourth quarter of 2016.
April 19, 2021	Under Armour announcesits future headquarters in Port Covington,  Maryland, US.
April 9, 2021	Under Armour commits to new sustainability targets, aiming to reduce its greenhouse gas emissions by 30% and use 100% renewable energy by 2030.
December 18, 2020	Under Armour completes the sale of the MyFitnessPal platform to Francisco Partners.
December 1, 2020	Under Armour launches the Curry brand with American basketball player Stephen Curry.
May 28, 2020	Under Armour announces phased store reopenings in North America.
May 18, 2020	Under Armour names Mohamed A. El-Erian as Lead Independent Director of the Board of Directors
April 15, 2020	Under Armour appoints Lisa Collier as Chief Product Officer.
October 22, 2019	Under Armour announces that President and COO Patrik Frisk will become the company’s CEO, effective January 1, 2020.
September 5, 2019	Under Armour announces the appointment of Stephanie Pugliese as President of North America.

  Management Team

• Kevin A. Plank—Chairman and Brand Chief
• Colin Browne—Interim President and CEO
• David E. Bergman—CFO
• Colin Browne—Chief Operating Officer
• Lisa Collier—Chief Product Officer

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Source: Company reports