On this page of StockholderLetter.com we present the latest annual shareholder letter from Under Armour, Inc. — ticker symbol UA. Reading current and past UA letters to shareholders can bring important insights into the investment thesis.

 •  6/27/2024 Letter Continued (Full PDF)
 •  6/27/2023 UA Stockholder Letter
 •  More "Textiles & Apparel" Category Stockholder Letters

UA Shareholder/Stockholder Letter Transcript:

ANNUAL
REPORT
LET TER FROM T H E C E O
-81(               
DEAR SHAREHOLDERS,
Since Under Armour   s founding nearly 30
years ago, our goal has been to deliver
industry-leading, innovative products that
empower athletes to perform at the highest
levels of competition. With a heritage
centered on athletic performance, Under
Armour is one of only a few podium brands
with the credibility of being recognized
worldwide as an authentic, on-field, court,
and pitch performance brand. It is a privilege
we do not take for granted and represents an
immense responsibility. While our strengths
are undeniable, we have been inconsistent in
recent years in how we show up in the market,
articulate stories to consumers, and deliver
industry-leading products every day.
At our best, we can deliver incredible
innovations and storytelling. In our fourth
quarter, we delivered six new footwear
drops     Infinite Pro, Infinite Elite, SlipSpeed
Mega, and Apparition in running, new Curry
colorways at the NBA All-Star game, and
Drive Pro in golf, yet we showed up quietly.
However, at this year   s Boston Marathon, UA
athlete Sharon Lokedi took her third podium
wearing the Velociti Elite 2 running shoes
    and ahead of the race, our team did a
fantastic job flooding social media channels
with our messaging. These examples, our
SlipSpeed footwear franchise, Unstoppable
collection, and women   s Meridian products,
demonstrate the power of fully aligning our
product and marketing engines.
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Moreover, Under Armour delivers some
of our industry   s highest-performing
innovations and materials sciences,
including moisture-wicking, body
temperature management, cushioning,
compression, and sustainable fabrics. Still,
we   ve not consistently communicated our
product advantages to athletes     what it
is, what it does, and how it will make them
better.
This will change. If a product is important
enough for us to develop and release,
it   s important enough to celebrate with
storytelling     if not, we won   t make it.
That is a crucial focus of our work as we
reconstitute our brand, particularly in North
America, moving forward with clarity around
our purpose of empowering those who strive
for more.
In fiscal 2024, we faced a challenging
macroeconomic environment and
increasingly competitive industry dynamics,
which included historically elevated
inventories and a constant drumbeat of
promotions. Amid these conditions, our
revenue declined 3% to $5.7 billion, primarily
due to challenges in our North American
business. Even so, our gross margin
improved 130 basis points to 46.1%, driven
mainly by supply chain benefits, and our
adjusted operating income and adjusted
diluted earnings per share were in line with
the outlook we gave at the beginning of the
year.

Due to a confluence of factors, including lower wholesale channel demand and inconsistent
execution across our business, we are seizing this critical moment to make proactive decisions
to build a premium positioning for our brand, which will pressure our top line in the mid-term.
Under Armour embraces its underdog spirit, and we have the grit and determination to tackle this
next chapter. The output of this work will take time, but we are moving with urgency to deliver
consistently across our business. We have refined and simplified our Protect This House strategy
to concentrate on three main priorities to reposition our business: achieving more, doing less,
and focusing on our core fundamentals. This is what you can expect from us:
1. Delivering Products and Storytelling. We will
prioritize our core performance and technical
innovation competency to avoid competing on
price, particularly in North America. To do this,
we are editing our product offerings and working
to better communicate our product advantages
to athletes in the near term     doing more with
less and being more intentional with our future
offerings by focusing on    better    and    best   
level products and driving greater operational
efficiency. While a critical mass of elevated
offerings won   t fully come to market until the fall/
winter 2025 season, in the next 18 months, we
plan to reduce our SKU/style count by 25% and
add greater flexibility and speed to our go-tomarket capabilities. We are also prioritizing our
core men   s apparel business, reorganizing our
product and marketing teams around our largest
revenue sports categories, and ensuring that our
authenticator of Team Sports, like basketball,
football, and American football, is front and
center to maintain a relationship with our targeted
16-24-year-old athletes. Brands are built with
consistency, and we will strengthen our brand in
this chapter.
2. Running Smarter Plays. We allowed ourselves to
become overly complex in the last few years. We
will be more intentional, simplifying our design
language and how we operate. We will streamline
our operating model, modernize our supply chain
and planning processes, and optimize our cost
base to drive greater efficiencies and, ultimately,
better profitability. This includes assigning single
points of accountable leadership within our
product, marketing, and sales organizations to
stay fully aligned as we deliver go-to-market
strategies focused on our athletes    needs, giving
us greater visibility into the category and product
performance critical to creating greater agility
and adaptation.
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3. Elevating Consumer Experiences. Our
work to elevate the Under Armour brand
experience, become more premium, and
build better connections with athletes
is of particular focus as we look to
address our North American business.
We will make our eCommerce business
a premium platform by deliberately
reducing promotions, discounting,
and harnessing the growing power of
our UA Rewards loyalty program. As
a companion piece to this, we plan to
increase the awareness and velocity
when we release new products    
becoming a brand of launches with
performance solutions athletes
never knew they needed and once
they   ve tried them, cannot imagine
living without them. We also have a
meaningful opportunity to elevate
our retail consumer experience at our
Brand Houses, which must become a
premium showcase for UA, and at our
Factory Houses, where we see additional
opportunities for margin expansion and
a better, more curated expression for our
consumers. This North American focus
does not mean we   re taking our foot off
the gas in international markets, which
remain an essential part of our business.
We will maintain high-quality sales across
all channels and protect our premium
brand positioning in every region
worldwide.
With these priorities, we are leaning into
the things that work well and reducing the
complexity that has distracted us from our
core mission     to make athletes better.
We have a strengthened and experienced
management team, the talent and
determination to deliver on these objectives,
and a strong balance sheet, as evidenced
by our Board   s recent approval of a threeyear, $500 million Class C share buyback
program.
Our strategy will take time to come to
fruition. As we execute against our goals    
we will remain disciplined in our efforts to
strengthen Under Armour, provide stability,
and focus on consistent execution to deliver
better results for all stakeholders. I am
honored to be back leading this iconic brand,
and I am excited to bring a clear sense of
purpose and 100% commitment to unlocking
our full potential and generating more
consistent value creation in the future. While
on this journey, we will continue to care for
the Under Armour brand, our teammates,
and our communities, including our home
in Baltimore, as we move into our new
headquarters later this year.
Thank you for your continued support.
KEVIN PLANK
President & Chief Executive Officer
Under Armour, Inc.
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 6/27/2024 Letter Continued (Full PDF)