Under Armour Reports First Quarter Net Revenues Growth of 23%; Raises Full Year Outlook

  Under Armour Reports First Quarter Net Revenues Growth of 23%; Raises Full
                                 Year Outlook

- First Quarter Net Revenues Increased 23% to $472 Million

- Company Raises 2013 Net Revenues Outlook to a Range of $2.21 Billion to
$2.23 Billion (+21% to +22%)

- Company Raises 2013 Operating Income Outlook to a Range of $256 Million to
$258 Million (+23% to +24%)

PR Newswire

BALTIMORE, April 19, 2013

BALTIMORE, April 19, 2013 /PRNewswire-FirstCall/ --Under Armour, Inc. (NYSE:
UA) today announced financial results for the first quarter ended March 31,
2013. Net revenues increased 23% in the first quarter of 2013 to $472 million
compared with net revenues of $384 million in the prior year's period. Net
income decreased 47% in the first quarter of 2013 to $8 million compared with
$15 million in the prior year's period, largely reflecting the planned timing
of marketing expenditures. Diluted earnings per share for the first quarter
of 2013 were $0.07 compared with $0.14 per share in the prior year's

(Logo: http://photos.prnewswire.com/prnh/20110127/NE37387LOGO )

First quarter apparel net revenues increased 22% to $346 million compared with
$283 million in the same period of the prior year, driven primarily by the
introduction of new Baselayer product and strong sales of Fleece. First
quarter footwear net revenues increased 27% to $81 million from $64 million in
the prior year's period, primarily driven by new running styles led by UA
Spine Venom. First quarter accessories net revenues increased 22% to $36
million from $30 million in the prior year's period. Direct-to-Consumer net
revenues, which represented 26% of total net revenues for the first quarter,
grew 31% year-over-year.

Kevin Plank, Chairman and CEO of Under Armour, Inc., stated, "In the first
quarter, we drove growth in excess of 20% for the 12th consecutive quarter in
total revenues and the 14th consecutive quarter in apparel revenues. This
growth is the direct result of our enhanced design and innovation, including
new and improved HeatGear Sonic Baselayer and the attention-grabbing UA Alter
Ego line, featuring iconic superheroes such as Batman and Superman. Our Youth
product is stronger than ever and we continue to see traction with our
expanded Women's lines in Studio and ArmourBra. Momentum is also evident in
Footwear with solid sell through of our latest product in the running
platform, Spine Venom."

Gross margin for the first quarter of 2013 was 45.9% compared with 45.6% in
the prior year's quarter, primarily reflecting favorable year-over-year North
American apparel product costs. Selling, general and administrative expenses
as a percentage of net revenues were 43.1% in the first quarter of 2013
compared with 39.2% in the prior year's period, primarily reflecting the
timing of marketing expenses and incentive compensation expenses. First
quarter operating income declined 45% to $13 million compared with $24 million
in the prior year's period. 

Balance Sheet Highlights
Cash and cash equivalents increased 139% to $256 million at March 31, 2013
compared with $107 million at March 31, 2012. The Company had no borrowings
outstanding under its $300 million revolving credit facility at March 31,
2013. Inventory at March 31, 2013 remained unchanged year-over-year at $324
million. Long-term debt decreased to $60 million at March 31, 2013 from $76
million at March 31, 2012.

Updated 2013 Outlook
The Company had previously anticipated 2013 net revenues in the range of $2.20
billion to $2.22 billion, representing growth of 20% to 21% over 2012, and
2013 operating income in the range of $255 million to $257 million,
representing growth of 22% to 23% over 2012. Based on current visibility, the
Company now expects 2013 net revenues in the range of $2.21 billion to $2.23
billion, representing growth of 21% to 22% over 2012, and 2013 operating
income in the range of $256 million to $258 million, representing growth of
23% to 24% over 2012. Despite deleveraging in the first quarter, the Company
continues to expect a relatively unchanged marketing expense rate from the
11.2% rate in 2012. The Company continues to expect an effective tax rate of
39.0% to 39.5% for the full year, compared to an effective tax rate of 36.7%
for 2012, and fully diluted weighted average shares outstanding of
approximately 108 million to 109 million for 2013.

Mr. Plank concluded, "Our strong start to 2013 was underscored by the
successful debut of our first of three Brand Holidays planned for this year,
which included our largest ever global marketing campaign, I WILL^®. As part
of this Brand Holiday, we opened the first UA Brand House retail store in our
hometown of Baltimore, launched the first-of-its kind performance monitoring
system for athletes, Armour39^™ and expanded our footwear running platform led
by UA Spine Venom. Combined with a heightened focus on newness and innovation
throughout our 2013 product portfolio, these efforts magnify our ability to
tell more impactful stories to a global audience. We are excited to share
more of our vision for the future of the Brand at our upcoming Investor Day on
June 5th."

Conference Call and Webcast
The Company will provide additional commentary regarding its first quarter
results as well as its updated 2013 outlook during its earnings conference
call today, April 19^th, at 8:30 a.m. ET. The call will be webcast live at
http://investor.underarmour.com/events.cfmand will be archived and available
for replay approximately three hours after the live event. Additional
supporting materials related to the call will also be available at
http://investor.underarmour.com. The Company's financial results are also
available online at http://investor.underarmour.com/results.cfm.

About Under Armour, Inc.
Under Armour®(NYSE: UA) is a leading developer, marketer, and distributor of
branded performance apparel, footwear, and accessories. The Company's products
are sold worldwide and worn by athletes at all levels, from youth to
professional, on playing fields around the globe. The Under Armour global
headquarters is in Baltimore, Maryland. For further information, please visit
the Company's website at www.ua.com.

Forward Looking Statements
Some of the statements contained in this press release constitute
forward-looking statements. Forward-looking statements relate to expectations,
beliefs, projections, future plans and strategies, anticipated events or
trends and similar expressions concerning matters that are not historical
facts, such as statements regarding our future financial condition or results
of operations, our prospects and strategies for future growth, the development
and introduction of new products, and the implementation of our marketing and
branding strategies. In many cases, you can identify forward-looking
statements by terms such as "may," "will," "should," "expects," "plans,"
"anticipates," "believes," "estimates," "predicts," "outlook," "potential" or
the negative of these terms or other comparable terminology. The
forward-looking statements contained in this press release reflect our current
views about future events and are subject to risks, uncertainties, assumptions
and changes in circumstances that may cause events or our actual activities or
results to differ significantly from those expressed in any forward-looking
statement. Although we believe that the expectations reflected in the
forward-looking statements are reasonable, we cannot guarantee future events,
results, actions, levels of activity, performance or achievements. Readers are
cautioned not to place undue reliance on these forward-looking statements. A
number of important factors could cause actual results to differ materially
from those indicated by the forward-looking statements, including, but not
limited to: changes in general economic or market conditions that could affect
consumer spending and the financial health of our retail customers; our
ability to effectively manage our growth and a more complex business; our
ability to effectively develop and launch new, innovative and updated
products; our ability to accurately forecast consumer demand for our products
and manage our inventory in response to changing demands; increased
competition causing us to reduce the prices of our products or to increase
significantly our marketing efforts in order to avoid losing market share;
fluctuations in the costs of our products; loss of key suppliers or
manufacturers or failure of our suppliers or manufacturers to produce or
deliver our products in a timely or cost-effective manner; changes in consumer
preferences or the reduction in demand for performance apparel, footwear and
other products; our ability to accurately anticipate and respond to seasonal
or quarterly fluctuations in our operating results; our ability to effectively
market and maintain a positive brand image; the availability, integration and
effective operation of management information systems and other technology;
and our ability to attract and maintain the services of our senior management
and key employees. The forward-looking statements contained in this press
release reflect our views and assumptions only as of the date of this press
release. We undertake no obligation to update any forward-looking statement to
reflect events or circumstances after the date on which the statement is made
or to reflect the occurrence of unanticipated events.

(Tables Follow)

Under Armour, Inc.

For the Quarter Ended March 31, 2013 and 2012

(Unaudited; in thousands, except per share amounts)

                                   Quarter Ended
                                               % of Net               % of Net
                                   2013                   2012
                                               Revenues               Revenues
Net revenues                       $ 471,608   100.0   %  $ 384,389   100.0  %
Cost of goods sold                 255,057     54.1    %  209,185     54.4   %
Gross profit                       216,551     45.9    %  175,204     45.6   %
Selling, general and               203,059     43.1    %  150,801     39.2   %
administrative expenses
Income from operations             13,492      2.9     %  24,403      6.3    %
Interest expense, net              (725)       (0.2)   %  (1,355)     (0.3)  %
Other income (expense), net        240         0.1     %  82          0.0    %
Income before income taxes         13,007      2.8     %  23,130      6.0    %
Provision for income taxes         5,193       1.1     %  8,469       2.2    %
Net income                         $ 7,814     1.7     %  $ 14,661    3.8    %
Net income available per common
Basic                              $ 0.07                 $ 0.14
Diluted                            $ 0.07                 $ 0.14
Weighted average common shares
Basic                              104,898                103,847
Diluted                            107,096                105,705
                                             2013         2012        %Change
Apparel                                      $ 345,526    $ 283,331   22.0   %
Footwear                                     80,783       63,663      26.9   %
Accessories                                  36,082       29,635      21.8   %
Total net sales                              462,391      376,629     22.8   %
Licensing revenues                           9,217        7,760       18.8   %
Total net revenues                           $ 471,608    $ 384,389   22.7   %
NET REVENUES BY GEOGRAPHIC                   Quarter Ended
SEGMENT                                      March31,
                                             2013         2012        %Change
North America                                $ 440,868    $ 362,521   21.6   %
Other foreign countries                      30,740       21,868      40.6   %
Total net revenues                           $ 471,608    $ 384,389   22.7   %

Under Armour, Inc.

As of March 31, 2013, December 31, 2012 and March 31, 2012

(Unaudited; in thousands)


                                          As of        As of        As of

                                          3/31/13      12/31/12     3/31/12
Cash and cash equivalents                 $ 255,722    $ 341,841    $ 107,052
Accounts receivable, net                  246,218      175,524      196,411
Inventories                               323,509      319,286      324,354
Prepaid expenses and other current        37,227       43,896       47,121
Deferred income taxes                     24,765       23,051       19,164
Total current assets                      887,441      903,598      694,102
Property and equipment, net               180,591      180,850      158,482
Intangible assets, net                    3,842        4,483        4,648
Deferred income taxes                     26,281       22,606       15,461
Other long term assets                    42,333       45,546       47,544
Total assets                              $ 1,140,488  $ 1,157,083  $ 920,237
Liabilities and Stockholders' Equity
Accounts payable                          $ 127,327    $ 143,689    $ 95,844
Accrued expenses                          66,969       85,077       40,970
Current maturities of long term debt      8,787        9,132        43,330
Other current liabilities                 3,246        14,330       2,550
Total current liabilities                 206,329      252,228      182,694
Long term debt, net of current            51,658       52,757       32,451
Other long term liabilities               39,343       35,176       31,004
Total liabilities                         297,330      340,161      246,149
Total stockholders' equity                843,158      816,922      674,088
Total liabilities and stockholders'       $ 1,140,488  $ 1,157,083  $ 920,237

Under Armour, Inc.

For the Quarter Ended March 31, 2013 and 2012

(Unaudited; in thousands)
                                                         Quarter    Quarter

                                                         Ended      Ended
Cash flows from operating activities
Net income                                               $ 7,814    $ 14,661
Adjustments to reconcile net income to net cash used in
operating activities
Depreciation and amortization                            11,842     10,591
Unrealized foreign currency exchange rate (gains)        606        (1,686)
Loss on disposal of property and equipment               56         390
Stock-based compensation                                 11,908     6,418
Deferred income taxes                                    (5,668)    (1,837)
Changes in reserves and allowances                       3,617      (1,917)
Changes in operating assets and liabilities:
Accounts receivable                                      (76,018)   (60,391)
Inventories                                              (4,323)    1,552
Prepaid expenses and other assets                        9,559      4,538
Accounts payable                                         (10,558)   (6,052)
Accrued expenses and other liabilities                   (11,780)   (26,041)
Income taxes payable and receivable                      (11,591)   (13,274)
Net cash used in operating activities                    (74,536)   (73,048)
Cash flows from investing activities
Purchases of property and equipment                      (18,329)   (8,839)
Change in restricted cash                                —          (198)
Net cash used in investing activities                    (18,329)   (9,037)
Cash flows from financing activities
Payments on long term debt                               (1,443)    (1,943)
Excess tax benefits from stock-based compensation        4,222      9,500
Proceeds from exercise of stock options and other stock  4,670      6,868
Net cash provided by financing activities                7,449      14,425
Effect of exchange rate changes on cash and cash         (703)      (672)
Net decrease in cash and cash equivalents                (86,119)   (68,332)
Cash and cash equivalents
Beginning of period                                      341,841    175,384
End of period                                            $ 255,722  $ 107,052
Non-cash investing and financing activities
Increase (decrease) in accrual for property and          $ (7,380)  $ 436

SOURCE Under Armour, Inc.

Website: http://www.underarmour.com
Contact: Investors: Tom Shaw, CFA, Under Armour, Inc., Tel: 410.843.7676;
Media: Erin Wendell, Under Armour, Inc., Tel: 410.454.6570
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