Under Armour, Inc. (NYSE:UAA) Q4 2020 Earnings Conference Call February 10, 2021 8:30 AM ET Company Participants Lance Allega - SVP, IR & Corporate Development Patrik Frisk - CEO, President & Executive Director David Bergman - CFO Conference Call Participants James Duffy - Stifel, Nicolaus & Company Paul Trussell - Deutsche Bank John Kernan - Cowen and Company Randal Konik - Jefferies Tom Nikic - Wells Fargo Securities Simeon Siegel - BMO Capital Markets Omar Saad - Evercore ISI Robert Drbul - Guggenheim Se ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________________ Form 10-Q ______________________________________ (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-33202 _________________________ ...

Financial Data and Key Metrics Changes - Third quarter revenue was flat at $1.4 billion compared to the prior year, which was better than expected due to higher demand across wholesale and direct-to-consumer (DTC) channels [21][27] - Gross margin decreased by 40 basis points to 47.9%, impacted by COVID-19 related pricing and discounting [24] - Operating income for the third quarter was $59 million, with adjusted operating income at $133 million [26] Business Line Data and Key Metrics Changes - Direct-to-consumer business increased by 17%, driven by strong e-commerce performance [21] - Apparel revenue was down 6%, while footwear revenue was up 19%, and accessories revenue increased by 23% [22] - Women's business showed strength with key innovations like the Infinity bra and Meridian pants [11] Market Data and Key Metrics Changes - North America revenue was down 5%, while EMEA revenue increased by 31%, and Asia Pacific revenue was up 15% [23] - E-commerce saw over 50% growth globally during the quarter [17][18] Company Strategy and Development Direction - The company is transitioning from a product-driven to a purpose-led organization, focusing on empowering athletes [7][8] - Plans to reduce wholesale footprint by 2,000 to 3,000 doors primarily in North America, while still maintaining wholesale as a crucial part of the business [16][30] - Emphasis on a direct consumer-focused approach to enhance brand experience and profitability [9][17] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the ongoing uncertainty due to COVID-19 but expressed confidence in the company's ability to return to profitability [6][4] - The fourth quarter outlook has improved, with expectations of revenue decline in the low teens percentage rate, better than previous estimates [27][29] - Management anticipates challenges in 2021 due to the sale of MyFitnessPal and the exit from certain wholesale distribution [30][31] Other Important Information - The company announced the decision to sell the MyFitnessPal platform, which does not align with its core consumer needs [19][20] - Inventory grew by 17%, ending the quarter at $1.1 billion [26] Q&A Session Summary Question: What categories are expected to drive growth? - Management sees significant opportunities in core team sports and women's business, with strong product performance across various categories [36][42] Question: What is the expected revenue mix between wholesale and DTC? - The company is focusing on a DTC approach, but the mix may not change significantly in the short term due to partner-owned mono-branded stores [39][40] Question: What is the profitability of the e-commerce channel? - E-commerce has shown strong growth, and the company is investing in CRM and loyalty programs to enhance profitability [55][58] Question: What are the expectations for gross margin in the fourth quarter? - Management expects promotional activity levels to be higher than last year, which may pressure gross margins [29][82] Question: How will the exit from undifferentiated wholesale doors impact revenue? - The exit will be gradual and will involve various customer sizes, aiming to ensure the brand is represented appropriately [53][54]

Revenue Performance - Net revenues decreased by 40.6% in Q2 2020 compared to the prior year period[103] - Wholesale revenue decreased by 57.7%, while direct-to-consumer revenue decreased by 13.0%[103] - Revenue from apparel, footwear, and accessories decreased by 42.4%, 34.8%, and 47.2% respectively[104] - Revenue in North America, Asia-Pacific, Latin America, and EMEA segments decreased by 44.9%, 20.0%, 71.9%, and 38.7% respectively[104] - Net revenues decreased by $484.1 million, or 40.6%, to $707.6 million for the three months ended June 30, 2020, compared to $1,191.7 million for the same period in 2019[115] - Net revenues for the six months ended June 30, 2020 decreased by $758.6 million, or 31.7%, to $1,637.9 million from $2,396.5 million during the same period in 2019[118] - Net revenues in the EMEA segment decreased by $56.2 million, or 38.7%, to $89.1 million for the three months ended June 30, 2020, from $145.3 million for the same period in 2019[125] - North America segment's net revenues decreased by $600.8 million to $1.1 billion for the six months ended June 30, 2020, a decline of 36.2% from $1.7 billion in 2019[129] - Asia-Pacific segment reported a decrease in net revenues of $79.4 million, totaling $219.0 million for the six months ended June 30, 2020, down 26.6% from $298.4 million in 2019[129] - Latin America segment's net revenues decreased by $24.7 million to $64.2 million for the six months ended June 30, 2020, reflecting a decline of 27.8%[129] Financial Losses and Charges - Restructuring and impairment charges totaled $38.9 million for Q2 2020[104] - The company recorded $340.0 million of restructuring and related impairment charges for the six months ended June 30, 2020[106] - Total costs recorded in restructuring and related impairment charges amounted to $38.9 million for the three months ended June 30, 2020, and $340.0 million for the six months ended June 30, 2020[107] - The company recognized $83.8 million of long-lived asset impairment charges for the six months ended June 30, 2020, with $43.4 million recorded in North America and $25.5 million in Asia-Pacific[109] - Goodwill impairment charges of $51.6 million were recognized for the six months ended June 30, 2020, with $15.4 million in North America and $36.2 million in Latin America[110] - Loss from operations increased by $158.2 million to $169.7 million for the three months ended June 30, 2020, compared to a loss of $11.5 million for the same period in 2019[118] - Net income loss was $182.9 million for the three months ended June 30, 2020, compared to a loss of $17.3 million for the same period in 2019[116] - Total operating loss for the six months ended June 30, 2020, was $727.9 million, a significant increase of $751.6 million compared to an operating income of $23.8 million in the same period in 2019, reflecting a change of 3,161.2%[131] - Corporate Other non-operating segment's operating loss increased by $328.7 million to $663.4 million for the six months ended June 30, 2020, compared to $334.7 million for the same period in 2019[132] Cost Management - Gross margin increased by 280 basis points[104] - Selling, general and administrative expenses decreased by 15.2%[104] - Selling, general and administrative expenses decreased by $85.9 million, or 15.2%, to $479.9 million for the three months ended June 30, 2020[117] - Selling, general and administrative expenses decreased by $42.6 million, or 4.0%, to $1,032.6 million for the six months ended June 30, 2020, from $1,075.3 million for the same period in 2019[121] - The company expects to achieve approximately $40 million to $60 million in pre-tax savings from the restructuring plan in 2020[105] Cash Flow and Financing - Cash used in operating activities increased by $422.1 million to $(309.4) million for the six months ended June 30, 2020, compared to $112.7 million for the same period in 2019[136] - Cash used in investing activities increased by $11.0 million to $89.1 million for the six months ended June 30, 2020, primarily due to the acquisition of Triple, a distributor in Southeast Asia[137] - Cash provided by financing activities increased by $825.4 million to $686.2 million for the six months ended June 30, 2020, primarily due to the issuance of Convertible Senior Notes[138] - The company borrowed $700 million under its revolving credit facility as a precautionary measure to increase cash position and preserve liquidity due to COVID-19[134] - The amended credit agreement provides revolving credit commitments of up to $1.1 billion, with $250 million outstanding as of June 30, 2020[139] - The company issued $500.0 million aggregate principal amount of 1.50% convertible senior notes due 2024, with net proceeds of $488.8 million[143] - The initial conversion rate for the Convertible Senior Notes is 101.8589 shares per $1,000 principal amount, equivalent to an initial conversion price of approximately $9.82 per share[143] Interest and Taxation - Interest expense, net increased by $5.3 million to $11.3 million for the three months ended June 30, 2020[118] - Interest expense for Q2 2020 was $11.3 million, up from $6.0 million in Q2 2019, representing an increase of 88.3%[146] - For the first half of 2020, interest expense totaled $17.3 million, compared to $10.2 million in the same period of 2019, indicating a 69.6% increase[146] - The effective tax rate for the six months ended June 30, 2020, was (2.5)%, compared to 20.3% for the same period in 2019[122] Acquisitions and Impairments - The company acquired 100% of Triple Pte. Ltd. for $32.9 million in cash on March 2, 2020, consolidating its results from that date[111] - The company recorded a ROU asset impairment of $290.8 million related to its New York City flagship store for the six months ended June 30, 2020[109] - The lease term for the New York City flagship store commenced on March 1, 2020, with an operating lease ROU asset and liability of $344.8 million recorded[107] Market and Risk Management - The company’s financial statements are prepared in accordance with U.S. GAAP, requiring estimates that could significantly differ from actual results[148] - No significant changes to critical accounting policies were reported during the first half of 2020[149] - There have been no significant changes to market risk exposure since December 31, 2019[151]

Under Armour, Inc. (NYSE:UAA) Q2 2020 Earnings Conference Call July 31, 2020 8:30 AM ET Company Participants Lance Allega - Senior Vice President, Investor Relations and Corporate Development Patrik Frisk - President and Chief Executive Officer Dave Bergman - Chief Financial Officer Conference Call Participants Edward Yruma - KeyBanc Randy Konik - Jefferies Matt McClintock - Raymond James Paul Lejuez - Citi Simeon Siegel - BMO Capital Markets John Kernan - Cowen Jay Sole - UBS Paul Trussell - Deutsche Bank ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________________ Form 10-Q ______________________________________ (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-33202 _____________________________ ...

Under Armour Inc. (NYSE:UAA) Q1 2020 Earnings Conference Call May 11, 2020 8:30 AM ET Company Participants Patrik Frisk - President, Chief Executive Officer Dave Bergman - Chief Financial Officer Lance Allega - Senior Vice President, Investor Relations and Corporate Development Conference Call Participants Matt McClintock - Raymond James Edward Yruma - Keybanc Capital Markets Alexandra Wavis - Goldman Sachs Paul Lejuez - Citigroup Bob Drbul - Guggenheim Michael Binetti - Credit Suisse Matthew Boss - JP Morg ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________________________ Form 10-K ______________________________________________ (Mark One) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-33202 __________________ ...

Financial Data and Key Metrics Changes - Revenue for Q4 2019 increased by 4% to $1.4 billion, with wholesale sales up 2% and direct-to-consumer revenue also up 2% [29][30] - Gross margin improved by 230 basis points to 47.3%, driven by pricing benefits and improved service levels [32] - Operating income was $74 million, with a net loss of $15 million or $0.03 diluted loss per share [33] Business Line Data and Key Metrics Changes - Apparel revenue was relatively flat, footwear revenue increased by 10%, and accessories revenue was up 2% [29] - Licensing revenue surged by 36%, primarily due to contractual royalty minimums and one-time settlements [29] - Direct-to-consumer revenue growth was offset by declines in North America, with international business showing stronger performance [30][31] Market Data and Key Metrics Changes - North America revenue was up 2%, driven by licensing and wholesale channels, while EMEA and Asia-Pacific saw revenue increases of 2% and 10% respectively [30][31] - Latin America revenue increased by 12%, benefiting from growth in both wholesale and direct-to-consumer channels [31] - Connected fitness business revenue rose by 16% to $35 million, driven by subscription strength [31] Company Strategy and Development Direction - The company is focused on athletic performance and aims to enhance brand authenticity through innovative products and experiences [7][9] - A strategic operational and cultural transformation is underway, although it is taking longer than anticipated [7][8] - The company plans to invest heavily in digital and marketing to increase brand awareness and consumer engagement [16][19] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns over softer demand in North America and the impact of the coronavirus outbreak on operations and financials [11][12] - The initial outlook for 2020 anticipates a low-single-digit decline in global revenue, with a significant impact expected from the APAC region due to the coronavirus [15][36] - Management emphasized the need for continued operational improvements and a focus on brand marketing to drive growth [39][40] Other Important Information - The company reported a 41% increase in cash and cash equivalents to $788 million and a 19% decrease in total debt to $593 million [35] - A potential restructuring plan is being assessed, which could involve pre-tax restructuring charges of $325 million to $425 million [40] Q&A Session Summary Question: What would you have done differently regarding North America growth? - Management acknowledged that it is taking longer than expected to regain shelf space and emphasized the importance of timing in their transformation efforts [46][49] Question: When will the mix of full-price to off-price sales be comfortable? - Management indicated that they are on a journey to reduce off-price sales and are excited about the marketing campaign to support this transition [51][54] Question: What is the outlook for the DTC channel and store development? - Management plans to open approximately 275 doors globally, with a focus on new Brand House and Factory House formats, while being cautious about the impact of the coronavirus [61][63]

Revenue Performance - Net revenues decreased by $13.5 million, or 0.9%, to $1,429.5 million for the three months ended September 30, 2019, compared to $1,443.0 million in the same period in 2018[99]. - Wholesale revenue decreased by 2.5%, while direct-to-consumer revenue decreased by 0.6%[91]. - Apparel revenue increased by 0.7%, accessories revenue increased by 1.7%, and footwear revenue decreased by 12.0%[91]. - Revenue in North America and Latin America segments decreased by 4.1% and 3.9%, respectively, while revenue in Asia-Pacific and EMEA segments increased by 3.7% and 9.0%, respectively[91]. - Total net revenues for the three months ended September 30, 2019, were $1,429,456 thousand, a decrease of $13,520 thousand or 0.9% compared to the same period in 2018[108]. - Total net revenues decreased by $43.6 million in North America to $1,015.9 million for Q3 2019, primarily due to a decrease in off-price sales and direct-to-consumer channel[109]. - EMEA segment net revenues increased by $13.3 million to $161.0 million for Q3 2019, driven by growth in the wholesale channel[109]. - Asia-Pacific segment net revenues rose by $5.5 million to $154.9 million for Q3 2019, mainly due to growth in the direct-to-consumer channel[109]. - Net revenues for the nine months ended September 30, 2019, increased by $22,700 thousand, or 0.6%, to $3,825,907 thousand compared to $3,803,205 thousand in the same period in 2018[104]. - Total net revenues for the nine months ended September 30, 2019, increased by $22.7 million to $3,825.9 million, a 0.6% increase compared to the same period in 2018[112]. Profitability - Gross margin increased by 220 basis points, reflecting improvements from the previous year[91]. - Gross profit for the three months ended September 30, 2019, increased by $24,700 thousand to $689,900 thousand, with a gross margin of 48.3%, up 220 basis points from 46.1% in the same period in 2018[102]. - Gross profit for the nine months ended September 30, 2019, increased by $73,800 thousand to $1,789,000 thousand, with a gross margin of 46.8%, up 170 basis points from 45.1% in the same period in 2018[106]. - Net income for the three months ended September 30, 2019, was $102.3 million, compared to $75.3 million in the same period in 2018[97]. - Income from operations increased to $138.9 million for the three months ended September 30, 2019, compared to $119.0 million in the prior year[97]. - Total operating income increased by $19.9 million to $138.9 million for Q3 2019, a 16.8% increase compared to the same period in 2018[110]. - North America operating income decreased by $16.5 million to $237.2 million for Q3 2019, primarily due to decreases in net revenues[110]. - EMEA operating income increased by $5.3 million to $22.0 million for Q3 2019, driven by increased net revenues[111]. - Income from operations for the nine months ended September 30, 2019, increased by $177,300 thousand to $162,700 thousand, compared to a loss of $14,600 thousand in the same period in 2018[107]. - Total operating income for the nine months ended September 30, 2019, increased by $177.3 million to $162.7 million, a significant improvement compared to the prior year[115]. Expenses and Investments - Selling, general and administrative expenses increased by 4.4%[91]. - Selling, general and administrative expenses increased by $23,300 thousand, or 4.4%, to $551,000 thousand for the three months ended September 30, 2019[102]. - Cash provided by operating activities decreased by $16.3 million to $102.5 million for the nine months ended September 30, 2019, compared to the same period in 2018[118]. - Cash used in investing activities decreased by $47.2 million to $107.0 million for the nine months ended September 30, 2019, compared to $154.2 million for the same period in 2018[119]. - Capital expenditures for the full year 2019 are expected to be approximately $180.0 million, primarily for investments in retail stores, global wholesale fixtures, corporate offices, and digital initiatives[119]. - Cash used in financing activities increased by $32.0 million to $138.7 million for the nine months ended September 30, 2019, from $106.7 million during the same period in 2018[119]. Financial Position and Debt - Interest expense, net decreased by $10,400 thousand to $15,900 thousand for the nine months ended September 30, 2019, primarily due to the prepayment of a term loan[107]. - The effective tax rate for the nine months ended September 30, 2019, was 21.9%, compared to (1.4)% for the same period in 2018, reflecting a shift from pre-tax losses to pre-tax income[107]. - The credit agreement provides revolving credit commitments for up to $1.25 billion of borrowings, maturing in March 2024, with no amounts outstanding as of September 30, 2019[120]. - As of September 30, 2019, the company was in compliance with the required consolidated EBITDA to consolidated interest expense ratio of not less than 3.50 to 1.00[120]. - The weighted average interest rate under the revolving credit facility borrowings was 3.6% for the nine months ended September 30, 2019[120]. - Interest expense, net, was $15.9 million for the nine months ended September 30, 2019, compared to $26.3 million for the same period in 2018[122]. - The company issued $600.0 million aggregate principal amount of 3.250% senior unsecured notes due June 15, 2026, with interest payable semi-annually[121]. - There were $5.1 million of letters of credit outstanding as of September 30, 2019, with up to $50.0 million of the facility available for such issuances[120]. - There have been no significant changes to market risk since December 31, 2018[127]. Strategic Initiatives - The company plans to continue investing in growth while improving operational efficiencies[91]. - Connected Fitness revenue increased by $7,186 thousand, or 22.3%, to $39,346 thousand for the three months ended September 30, 2019, driven by new subscription revenue and a one-time development fee[108]. - Connected Fitness revenue for the nine months ended September 30, 2019, increased by $11,300 thousand, or 12.5%, to $101,385 thousand, primarily due to new subscription revenue[106].