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Under armor 2010 10k

Business

We plan to continue to grow our business over the long term through increased sales of our apparel,

footware and accessories, expansion of our wholesale distribution, growth in our direct to consumer

sales channel and expansion in international markets.

Product offerings consist of apparel, footware and accessories. We market our products at multiple

price levels. What different price levels? Apparel is 80% of sales, and footware is 12%.

For apparel, there is heatgear, coldgear, and allseasongear. They sponsor a few college teams.

Categorically, is does UA have most of their brand equity in football, basketball, or some other sport?

My guess would be football. Since 2006 they have sponcered the NFL.

In 2010 73% of net revenues were from wholesale distribution united state retail chains such as

academy sports, dicks, hibbet, models, and sports authority. 23% of net revenues came from direct

consumer sales.

My thought that football is biggest user looks to be correctseasonality in the fall season)

75% of fabric used came from 8 suppliers in el Salvador, mexico, peru, and US. Most of there synthetic

fabrics use patrolium based products.

Intellectual property:

We believe we own the internally developed material trademarkts used in connection with the

marketing, distribution, and sale of all our products.

We believe the distinctive trademarks we use in connection with our products are important in buiding

our brand image and distinguishing our products from those of other. These trademarks are among our

most valuable assets. I would agree sinec anyone could buy this fiber.

The intellectual property rights in much of the technology, materials and processes used to manufacture

our products are often owned or controlled by our suppliers.( THEY DONT SAY NONAFFILIATE HERE-HA)

Risk factors

Fluctuation of cost, loss of key suppliers, change in consumer preference

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1. During a downturn in the economy, discretionary purchases are less. My worry is that peoplesay to themselves that they only need one UA shirt and not 5.

2. If UA continues to grow at a strong pace, they may not be able to manage the growth. Thisbrings up a good issue; when should this company start feeling more of the competitive squeeze

and move towards its ltgr?

3. We operate in a highly competitive market and the size and resources of some of ourcompetitors may allow them to compete more effectively than we can, resulting in a loss of our

market share and a decrease in our net revenues. Because we currently do not own any fabric

or process patents, our current and future competitors are able to manufacture and sell produts

with performance characteristics similar to ours. It is tough to see any sustained competitive

advantage with this company. Many of our competitiors are large apparel and footware

companies with strong worldwide brand recognition. Because of the fragmented nature of the

industry, we also compete with other manufactures, including those specializing in outdoor

apparel. Many of our competitors have signifigant competitive advantages, including greater

financial, distribution, marketing and other recources, longer operating histories, better brand

recognition, and greater econ of scale.

4. Our fabrics and manufacturing technology are not patented and can be imitated by ourcompetitors. Because many of our competitors have signifigantly greater financial, distribution,

marketing and other resources, they may manufacturer and sell products based on our fabrics

and manufacturing technology at lower prices than we can.

The fact that they introduced cotton into their product mix says something. Possibly that there

margins on there past clothes wre not good.