under armour global hq baltimore, md

96 Pages·2013·3.22 MB·English

SPEED AND
INNOVATION
We pride ourselves on
knowing athletes better
than anyone else out there,
which is why we have the
vision required to imagine,
innovate, and invent things
athletes never even knew
they needed. The innovation
on this page, however, isn’t
available just yet. But it’s
being worked on at Under
Armour right now.
uNDEr ArmOur glObAl hq
baltimore, md
BoArd oF direCtors
Kevin A. PlAnK
ChAirmAn of The BoArd of direCTors & Chief exeCUTive offiCer
Byron K. AdAms, Jr.
Chief PerformAnCe offiCer
douglAs e. ColthArP
exeCUTive viCe PresidenT & Chief finAnCiAl offiCer,
heAlThsoUTh CorPorATion
Anthony W. deering
former Chief exeCUTive offiCer &
ChAirmAn of The BoArd of direCTors, The roUse ComPAny
A.B. KrongArd
former Chief exeCUTive offiCer &
under armour® brand house ChAirmAn of The BoArd of direCTors, Alex.BroWn, inCorPorATed
bAlTImOrE, mD
WilliAm r. mCdermott
Co-Chief exeCUTive offiCer And exeCUTive BoArd memBer, sAP AG
eriC t. olson
AdmirAl, U.s. nAvy (reTired)
former CommAnder, U.s. sPeCiAl oPerATions CommAnd
BrendA PiPer
Chief mArkeTinG offiCer, AnimATion, yoUnG AdUlTs & kids mediA GroUP,
TUrner BroAdCAsTinG sysTem, inC.
hArvey l. sAnders
former Chief exeCUTive offiCer &
ChAirmAn of The BoArd of direCTors, nAUTiCA enTerPrises, inC.
thomAs J. siPPel
PArTner, Gill siPPel & GAllAGher
ThE FIrST-EVEr uA brAND hOuSE
in the heart of our hometown, we’ve
created a store unlike any athletes have
seen before, featuring the very best UA
innovations. The UA Brand house is the
ultimate expression of the Under Armour
Brand, giving shoppers access to our full
line of performance footwear, apparel, and
accessories, along with expert advice from
our UA Brand house teammates.
under armour® shop
shanghai, china
under armour® shop
harrod’s, london
under armour® shop
dick’s sporting goods, chicago
NET REVENUES NET REVENUES BY DISTRIBUTION
$1,834,921
in thousands; year 2008–2012 year 2012
+25%
$1,472,684
+38%
$1,063,927
+24%
$856,411
$725,244 +18%
+20%
2008 2009 2010 2011 2012 WhOlESalE 68.6%
DIREcT TO cONSUmER 29.0%
5-YEaR cOmpOUND aNNUal gROWTh RaTE* 24.8%
lIcENSINg 2.4%
* Based on fiscal year 2007 net revenues of $606,561
When we innovate, we win. This simple in 2012, adding a softer touch and anti-odor bution gaps in locations like department stores.
statement epitomized our approach in 2012 attributes. It’s the notion of “newness” that The notion of “NeXT” is a guiding principle
and will only be amplified as we set the bar our customer demands and will be a height- in our Youth business–
higher in 2013 and beyond. It is the philosophy ened focus as we flow more product to the the UA consumers of
and attitude that put points on the scoreboard market while reducing our reliance on legacy tomorrow–as well as
for 2012, with 25% net revenues growth, 31% programs. It’s broadening our appeal to more how we are communi-
earnings per share growth, and significant im- consumers while also reducing our dependen- cating with these future
provement to our inventory positioning, which cy on weather extremes by focusing on areas athletes. We remain fo-
drove a nearly doubling of our cash position to like Fleece, which grew nearly 50% in 2012. cused on capturing the
$342 million. It has helped deliver eleven con- And it’s understanding that the needs of our “NeXT” generation of
secutive quarters of 20%+ net revenue growth athletes are changing, and that versatility is a professional athletes,
for the Under Armour Brand. It has enabled us winning proposition. including 2012 Nation-
to add nearly $1 Another specific area where innovation al League MVP and
billion in net rev- is driving results is in Women’s, where key World Series Champion
enues over the investments made over the past few years in Buster Posey, 2012 Na-
past three years, areas such as fit and design are helping intro- tional League Rookie of
putting the Com- duce Under Armour to a whole new consumer. the Year Bryce harper,
pany in position to reach our goal established at We debuted platforms like Armour Bra and up-and-coming ten-
“…ThE pOTENTIal Of OUR
our June 2011 Investor Day: 2X our net revenues UA Studio, which are redefining her expecta- nis phenom Sloane BRaND IS SEEmINglY
from 2010 to 2013. tions for the Brand. These product messages Stephens, WBC super- lImITlESS WITh kIDS.”
Innovation has helped successfully transi- were amplified by our first targeted Women’s welterweight champion Canelo Alvarez and
tion our Brand from a “tight t-shirt company” campaign, What’s Beautiful, which provided former world #1 amateur golfer, 19-year-old
to a fully integrated athletic brand capable of a unique community to challenge and shat- Jordan Spieth.
servicing the full needs of athletes. As a state- ter expectations on what she can accomplish. Part of the promise of the Brand and our
ment to this progression, compression apparel While we are pleased with the nearly $400 ability to be next with the upcoming genera-
represented 63% of our apparel mix during million Women’s business we have built to tion of athletes will be driven by our efforts in
our IPO year of 2005. Today, it is down to just date, we are positioned to amplify her voice Footwear. Still just in our seventh year, the cat-
14%. in 2013. We recently added our new executive egory grew 32 percent to reach nearly a quar-
Innovation can drive platforms for the Brand, Creative Director for Women’s, and we are fo- ter of a billion dollars. however, to date, this
including Charged Cotton and UA Storm, which cused on assortment, fit, color, and the right success has really only manifested into mean-
both posted substantial growth in 2012 follow- distribution. ingful market share in one category: cleats. We
ing their 2011 introductions. It can also produce Much like Women’s, the potential of our are building on-field credibility with our ath-
technologies like coldblack, a fabrication that re- Brand is seemingly limitless with kids. Youth letes through truly game-changing products
flects the sun’s heat and light, keeping you cooler product grew at a faster rate than both Men’s such as our $130 UA highlight football cleat.
and more comfortable on a hot summer day. and Women’s in 2012 and should again lead This type of pinnacle product helped UA ap-
Innovation for us also means making our the way in 2013 as we focus on product expan- proach nearly 30 percent market share in both
core UA TeCh t-shirts better than ever before sions in areas like graphic t-shirts and fill distri- baseball and football in 2012, and we will con-
We have delivered 11 consecutive
NET REVENUES BY DISTRIBUTION INcOmE fROm OpERaTIONS NET REVENUES BY pRODUcT
year 2012 in thousands; year 2008–2012 caTEgORY year 2012 quarters of 20%+ groWth, Which
has enabled us to add nearly $1
$208,696
+28% billion in net revenues over the
$162,767 past three years.
+45%
$112,355
+32%
$85,273
$76,925
+11%
-11%
appaREl 75.6%
2008 2009 2010 2011 2012 fOOTWEaR 13.0%
5-YEaR cOmpOUND aNNUal gROWTh RaTE* 19.3% accESSORIES 9.0%
lIcENSINg REVENUES 2.4%
* Based on fiscal year 2007 income from operations of $86,265
tinue to build upon that momentum in 2013. sumers. We expanded this store base in the U.S. tional approach to reaching consumers in new
Some of that momentum will be evident in from 80 stores in 2011 to 101 in 2012. markets through digital means like ecommerce
Running footwear, where we built upon some Beyond outlets, we opened the next gen- and social media.
of the early success of our $120 UA Charge RC eration of UA Specialty with our harbor east With all of our focus on building great prod-
product and Micro G cushioning technology store in downtown Baltimore in February uct for athletes, no
to unveil UA Spine last July. UA Spine is our 2013. Delivering an unrivaled store experi- element of our busi-
unique stance on melding lightweight and sta- ence through specialization, localization, and ness is more criti-
bility, and the platform will move well beyond innovation, the store provides an important cal to our success
running in 2013. learning lab that we will continue to refine than the continued
Great product requires great distribution, and test with additional stores in the future in development of our
and we continue to work with our partners like strategic locations. team. As we build
Dick’s Sporting Goods, The Sports Authority, Rounding out Direct-to-Consumer, ecom- the organizational
and Academy to elevate our Brand. Ongoing merce will continue to be a growth vehicle for structure in Balti-
investments such as our All-American and the company as we drive enhanced merchan- more and around
gamE-chaNgINg pRODUcT lIkE
Blue Chip shop-in-shops with Dick’s Sporting dising and storytelling, including a clearer the world, we will ThE Ua hIghlIghT clEaT haS
Goods are providing a more comprehensive as- connection with some of our larger branding consistently sup- pROVIDED mOmENTUm fOR US IN
OThER fOOTWEaR caTEgORIES.
sortment to our consumers. At the same time, initiatives planned in 2013. plement this great
we continue to look for new ways to reach con- While all these initiatives continue to drive leadership to help ensure our progress as a lead-
sumers, especially in channels that are more our business at home, we are mindful that the ing global athletic brand. In 2012, we added
relevant to certain product categories like opportunities abroad are bigger. Our interna- new leadership within International, Supply
Women’s and Youth. To that end, we entered tional business represented only 6% of net rev- Chain, Women’s, and human Resources. Our
more than 500 new department store doors enues in 2012, and we continue to believe that success in 2012 is a direct result of the team
in 2012, including Macy’s, Dillards, Belk and the strength in our core U.S. business affords we have and continue to build in Baltimore and
Lord & Taylor, and are positioned to broaden us the opportunity and patience to make the around the world.
this reach going forward. right decisions in europe, Latin America, and expect to see more of us in 2013 and be-
Our conversation around distribution Asia. We are able to take a different, broader yond. expect a louder, more focused, more
would not be complete without our Direct-to- approach to how we enter these markets. Our disruptive voice. expect more innovation and
Consumer channel. Direct-to-Consumer net grassroots efforts help us build the Brand by product that redefines how an athlete performs.
revenues grew 34 percent in 2012 to over a half being intensely focused on sport authenticity As we prepare for 2013 and beyond, we will re-
of a billion dollars, or nearly the size of our en- in local markets. We are able to balance this main humble in the success we have achieved
tire business in 2007. The channel represented approach with larger brand-building initia- and hungry to press on to new opportunities.
29 percent of total net revenues for the year, up tives such as the July 2012 introduction of
from 27 percent in 2011 and 23 percent in 2010. our kit for Tottenham hotspur of the english
The bulk of this business is driven by our Fac- Premier League, reaching over 20 million fans
tory house outlet stores, which continue to help globally. Finally, in the age where we are all Kevin A. Plank
us better manage our excess inventory while connected like never before through technol- Chairman of the Board of Directors &
reaching out and providing value to our con- ogy, we have the ability to change the tradi- Chief executive Officer
OFFICIAL TECHNICAL PARTNER OF
TOTTENHAM HOTSPUR FOOTBALL CLUB
In 2012, we took our most signifi cant step into the world’s most popular
sport by signing a partnership to outfi t the Tottenham Hotspur Football
Club of the Barclays Premier League. The entire global audience
saw the introduction of the Spurs’ full collection of Under Armour®
performance training gear and kits, resulting in Tottenham Hotspur’s
most successful kit launch to date.
THE RELENTLESS PURSUIT OF INNOVATION
We continue to be the thought leaders in innovation with new products
like the Armour39™, the fi rst-of-its-kind performance monitoring system
for athletes that measures what matters most: WILLpower™.
HOW STRONG IS YOUR WILLPOWER™?
THE ARMOUR 39™ WILL TELL YOU.
WILLpower™ is the score that tells you exactly how hard you’ve worked
during a training session. The Armour39™ system also tracks vitals like
calories burned, heart rate, and real-time intensity. Now you won’t just
see yourself getting better—you’ll be keeping score.
GEORGES
ST-PIERRE
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington,D.C.20549
Form 10-K
(MarkOne)
Í ANNUALREPORTPURSUANTTOSECTION13OR15(d)OFTHESECURITIES
EXCHANGEACTOF1934
ForthefiscalyearendedDecember31,2012
or
‘ TRANSITIONREPORTPURSUANTTOSECTION13OR15(d)OFTHESECURITIES
EXCHANGEACTOF1934
Forthetransitionperiodfrom to
CommissionFileNo.001-33202
UNDER ARMOUR, INC.
(Exactnameofregistrantasspecifiedinitscharter)
Maryland 52-1990078
(Stateorotherjurisdictionof (I.R.S.Employer
incorporationororganization) IdentificationNo.)
1020HullStreet
Baltimore,Maryland21230 [phone]
(Addressofprincipalexecutiveoffices)(ZipCode) (Registrant’sTelephoneNumber,IncludingAreaCode)
SecuritiesregisteredpursuanttoSection12(b)oftheAct:
ClassACommonStock NewYorkStockExchange
(Titleofeachclass) (Nameofeachexchangeonwhichregistered)
SecuritiesregisteredpursuanttoSection12(g)oftheAct:
None
Indicatebycheckmarkiftheregistrantisawell-knownseasonedissuer,asdefinedinRule405oftheSecurities
Act. Yes Í No ‘
IndicatebycheckmarkiftheregistrantisnotrequiredtofilereportspursuanttoSection13orSection15(d)ofthe
Act. Yes ‘ No Í
Indicatebycheckmarkwhethertheregistrant(1)hasfiledallreportsrequiredtobefiledbySection13or15(d)ofthe
SecuritiesExchangeActof1934duringthepreceding12months(orforsuchshorterperiodthattheregistrantwasrequiredto
filesuchreports),and(2)hasbeensubjecttosuchfilingrequirementsforthepast90days. Yes Í No ‘
IndicatebycheckmarkwhethertheregistranthassubmittedelectronicallyandpostedonitscorporateWebsite,ifany,
everyInteractiveDataFilerequiredtobesubmittedandpostedpursuanttoRule405ofRegulationS-T(§229.405ofthis
chapter)duringthepreceding12months(orforsuchshorterperiodthattheregistrantwasrequiredtosubmitandpostsuch
files. Yes Í No ‘
IndicatebycheckmarkifthedisclosureofdelinquentfilerspursuanttoItem405orRegulationS-K(§229.405ofthis
chapter)isnotcontainedherein,andwillnotbecontained,tothebestofregistrant’sknowledge,indefinitiveproxyor
informationstatementsincorporatedbyreferenceinPartIIIofthisForm10-KoranyamendmenttothisForm10-K. Í
Indicatebycheckmarkwhethertheregistrantisalargeacceleratedfiler,anacceleratedfiler,anon-acceleratedfiler,ora
smallerreportingcompany.Seedefinitionsof“largeacceleratedfiler,”“acceleratedfiler,”and“smallerreportingcompany”
inRule12b-2oftheExchangeAct.
Largeacceleratedfiler Í Acceleratedfiler ‘
Non-acceleratedfiler ‘ (Donotcheckifasmallerreportingcompany) Smallerreportingcompany ‘
Indicatebycheckmarkwhethertheregistrantisashellcompany(asdefinedinRule12b-2ofthe
Act). Yes ‘ No Í
AsofJune30,2012,thelastbusinessdayofourmostrecentlycompletedsecondfiscalquarter,theaggregatemarket
valueoftheregistrant’sClassACommonStockheldbynon-affiliateswas$3,682,610,640.
AsofJanuary31,2013,therewere83,469,813sharesofClassACommonStockand21,300,000sharesofClassB
ConvertibleCommonStockoutstanding.
DOCUMENTSINCORPORATEDBYREFERENCE
PortionsofUnderArmour,Inc.’sProxyStatementfortheAnnualMeetingofStockholderstobeheldonApril30,2013
areincorporatedbyreferenceinPartIIIofthisForm10-K.
UNDERARMOUR,INC.
ANNUALREPORTONFORM10-K
TABLEOFCONTENTS
PARTI.
Item1. Business
General ................................................................. 1
Products ................................................................ 1
MarketingandPromotion .................................................. 2
SalesandDistribution ..................................................... 3
Seasonality .............................................................. 5
ProductDesignandDevelopment ............................................ 5
Sourcing,ManufacturingandQualityAssurance ................................ 6
InventoryManagement .................................................... 7
IntellectualProperty ....................................................... 7
Competition ............................................................. 8
Employees .............................................................. 8
AvailableInformation ..................................................... 8
Item1A.RiskFactors ................................................................. 9
Item1B. UnresolvedStaffComments .................................................... 19
Item2. Properties ................................................................... 20
Item3. LegalProceedings ............................................................ 20
ExecutiveOfficersoftheRegistrant .............................................. 21
Item4. MineSafetyDisclosures ....................................................... 22
PARTII.
Item5. MarketforRegistrant’sCommonEquity,RelatedStockholderMattersandIssuerPurchases
ofEquitySecurities ......................................................... 23
Item6. SelectedFinancialData ........................................................ 26
Item7. Management’sDiscussionandAnalysisofFinancialConditionandResultsofOperations ... 27
Item7A.QuantitativeandQualitativeDisclosuresAboutMarketRisk........................... 43
Item8. FinancialStatementsandSupplementaryData ...................................... 46
Item9. ChangesinandDisagreementsWithAccountantsonAccountingandFinancialDisclosure... 74
Item9A.ControlsandProcedures ....................................................... 74
Item9B. OtherInformation ............................................................ 75
PARTIII.
Item10. Directors,ExecutiveOfficersandCorporateGovernance ............................. 76
Item11. ExecutiveCompensation ....................................................... 76
Item12. SecurityOwnershipofCertainBeneficialOwnersandManagementandRelatedStockholder
Matters ................................................................... 76
Item13. CertainRelationshipsandRelatedTransactions,andDirectorIndependence .............. 76
Item14. PrincipalAccountantFeesandServices ........................................... 76
PARTIV.
Item15. ExhibitsandFinancialStatementSchedules ....................................... 77
SIGNATURES ........................................................................ 80
PARTI
ITEM1. BUSINESS
General
Ourprincipalbusinessactivitiesarethedevelopment,marketinganddistributionofbrandedperformance
apparel,footwearandaccessoriesformen,womenandyouth.Thebrand’smoisture-wickingfabricationsare
engineeredinmanydesignsandstylesforwearinnearlyeveryclimatetoprovideaperformancealternativeto
traditionalproducts.Ourproductsaresoldworldwideandarewornbyathletesatalllevels,fromyouthto
professional,onplayingfieldsaroundtheglobe,aswellasbyconsumerswithactivelifestyles.
Ournetrevenuesaregeneratedprimarilyfromthewholesaledistributionofourproductstonational,
regional,independentandspecialtyretailers.Wealsogeneratenetrevenuefromproductlicensingandfromthe
saleofourproductsthroughourdirecttoconsumersaleschannel,whichincludessalesthroughourfactoryhouse
andspecialtystoresandwebsites.AlargemajorityofourproductsaresoldinNorthAmerica;howeverwe
believethatourproductsappealtoathletesandconsumerswithactivelifestylesaroundtheglobe.Internationally,
wesellourproductsinChinaandcertaincountriesinEurope.AthirdpartylicenseesellsourproductsinJapan
anddistributorssellourproductsinotherforeigncountries.Weplantocontinuetogrowourbusinessoverthe
longtermthroughincreasedsalesofourapparel,footwearandaccessories,expansionofourwholesale
distribution,growthinourdirecttoconsumersaleschannelandexpansionininternationalmarkets.Virtuallyall
ofourproductsaremanufacturedbyunaffiliatedmanufacturersoperatingin14countriesoutsideoftheUnited
States.
WewereincorporatedasaMarylandcorporationin1996.Asusedinthisreport,theterms“we,”“our,”
“us,”“UnderArmour”andthe“Company”refertoUnderArmour,Inc.anditssubsidiariesunlessthecontext
indicatesotherwise.Wehaveregisteredtrademarksaroundtheglobe,includingUNDERARMOUR®,
HEATGEAR®,COLDGEAR®,ALLSEASONGEAR®andtheUnderArmourUALogo,andwehaveappliedto
registermanyothertrademarks.ThisAnnualReportonForm10-Kalsocontainsadditionaltrademarksand
tradenamesofourCompany.AlltrademarksandtradenamesappearinginthisAnnualReportonForm10-Kare
thepropertyoftheirrespectiveholders.
Products
Ourproductofferingsconsistofapparel,footwearandaccessoriesformen,womenandyouth.Wemarket
ourproductsatmultiplepricelevelsandprovideconsumerswithproductsthatwebelieveareasuperior
alternativetotraditionalathleticproducts.In2012,salesofapparel,footwearandaccessoriesrepresented76%,
13%and9%ofnetrevenues,respectively.Licensingarrangementsforthesaleofourproductsrepresentedthe
remaining2%ofnetrevenues.RefertoNote16totheConsolidatedFinancialStatementsfornetrevenuesby
product.
Apparel
Ourapparelisofferedinavarietyofstylesandfitsintendedtoenhancecomfortandmobility,regulatebody
temperatureandimproveperformanceregardlessofweatherconditions.Ourapparelisengineeredtoreplace
traditionalnon-performancefabricsintheworldofathleticsandfitnesswithperformancealternativesdesigned
andmerchandisedalonggearlines.Ourthreegearlinesaremarketedtotellaverysimplestoryaboutourhighly
technicalproductsandextendacrossthesportinggoods,outdoorandactivelifestylemarkets.Wemarketour
apparelforconsumerstochooseHEATGEAR®whenitishot,COLDGEAR®whenitiscoldand
ALLSEASONGEAR®betweentheextremes.Withineachgearlineourapparelcomesinthreeprimaryfittypes:
compression(tightfit),fitted(athleticfit)andloose(relaxed).
HEATGEAR®isdesignedtobeworninwarmtohottemperaturesunderequipmentorasasinglelayer.Our
firstcompressionT-shirtwastheoriginalHEATGEAR®productandremainsoneofoursignaturestyles.While
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asweat-soakedtraditionalnon-performanceT-shirtcanweightwotothreepounds,HEATGEAR®isengineered
withamicrofiberblenddesignedtowickmoisturefromthebodywhichhelpsthebodystaycool,dryandlight.
WeofferHEATGEAR®inavarietyoftopsandbottomsinabroadarrayofcolorsandstylesforwearinthegym
oroutsideinwarmweather.
Becauseathletessweatincoldweatheraswellasintheheat,COLDGEAR®isdesignedtowickmoisture
fromthebodywhilecirculatingbodyheatfromhotspotstohelpmaintaincorebodytemperature.Our
COLDGEAR®apparelprovidesbothdrynessandwarmthinasinglelightlayerthatcanbewornbeneatha
jersey,uniform,protectivegearorski-vest,andourCOLDGEAR®outerwearproductsprotecttheathlete,aswell
asthecoachandthefanfromtheoutsidein.OurCOLDGEAR®productsgenerallysellathigherpricesthanour
othergearlines.
ALLSEASONGEAR®isdesignedtobeworninbetweenextremetemperaturesandusestechnicalfabricsto
keepthewearercoolanddryinwarmertemperatureswhilepreventingachillincoolertemperatures.
Footwear
Webeganofferingfootwearformen,womenandyouthin2006,andeachyearwehaveexpandedour
footwearofferings.Ourfootwearofferingsincludefootball,baseball,lacrosse,softballandsoccercleats,slides,
performancetrainingfootwear,runningfootwear,basketballfootwearandhuntingboots.Ourfootwearislight,
breathableandbuiltwithperformanceattributesforathletes.Ourfootwearisdesignedwithinnovative
technologieswhichprovidestabilization,directionalcushioningandmoisturemanagementengineeredto
maximizetheathlete’scomfortandcontrol.
Accessories
Accessoriesincludesthesaleofheadwear,bagsandgloves.OuraccessoriesincludeHEATGEAR®and
COLDGEAR®technologiesandaredesignedwithadvancedfabricationstoprovidethesamelevelof
performanceasourotherproducts.
WealsohaveagreementswithourlicenseestodevelopUnderArmouraccessories.Ourproduct,marketing
andsalesteamsareactivelyinvolvedinallstepsofthedesignprocessinordertomaintainbrandstandardsand
consistency.During2012,ourlicenseesofferedsocks,teamuniforms,babyandkids’apparel,eyewearand
inflatablefootballsandbasketballsthatfeatureperformanceadvantagesandfunctionalitysimilartoourother
productofferings.Licenserevenuesgeneratedfromthesaleoftheseaccessoriesareincludedinournetrevenues.
MarketingandPromotion
Wecurrentlyfocusonmarketingandsellingourproductstoconsumersprimarilyforuseinathletics,
fitness,trainingandoutdooractivities.Weseektodriveconsumerdemandbybuildingbrandequityand
awarenessthatourproductsdeliveradvantagesthathelpathletesperformbetter.
SportsMarketing
Ourmarketingandpromotionstrategybeginswithprovidingandsellingourproductstohigh-performing
athletesandteamsonthehighschool,collegiateandprofessionallevels.Weexecutethisstrategythrough
outfittingagreements,professionalandcollegiatesponsorships,individualathleteagreementsandbyproviding
andsellingourproductsdirectlytoteamequipmentmanagersandtoindividualathletes.Asaresult,ourproducts
areseenonthefield,givingthemexposuretovariousconsumeraudiencesthroughtheinternet,television,
magazinesandliveatsportingevents.Thisexposuretoconsumershelpsusestablishon-fieldauthenticityas
consumerscanseeourproductsbeingwornbyhigh-performingathletes.
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