Under Armour : Reports First Quarter Net Revenues Growth of 25%; 20 Straight Quarters Above 20% Net Revenue Growth

April 21, 2015

● First Quarter Net Revenues Increased 25% to $805 Million, Up 27% on a Currency Neutral Basis

● Raises 2015 Net Revenues Outlook to Approximately $3.78 Billion (+23%)

● Raises 2015 Operating Income Outlook to a Range of $400 Million to $408 Million (+13% to +15%), Inclusive of the Impact of the Connected Fitness Acquisitions

$642 million in the prior year's period. On a currency neutral basis, net revenues increased 27% compared with the prior year's period. Net income decreased 13% in the first quarter of 2015 to $12 million compared with $14 million in the prior year's period, inclusive of costs related to the previously announced acquisitions of Endomondo and MyFitnessPal during the first quarter. Diluted earnings per share for the first quarter of 2015 were $0.05 compared with $0.06 per share in the prior year's period.
First quarter apparel net revenues increased 21% to $555 million compared with $459 million in the same period of the prior year, driven primarily by new product introductions in baselayer and training. First quarter footwear net revenues increased
41% to $161 million from $114 million in the prior year's period, highlighted by expanded SpeedForm running offerings as well as the introduction of the Curry One basketball shoe. First quarter accessories net revenues increased 23% to $63 million from
$52 million in the prior year's period. Direct-to-Consumer net revenues, which represented 25% of total net revenues for the first quarter, grew 21% year-over-year. International net revenues, which represented 12% of total net revenues for the first quarter, grew 74% year-over-year.
Kevin Plank, Chairman and CEO of Under Armour, Inc., stated, "We reached an important milestone to start 2015 with our 20th straight quarter above 20% net revenue growth. This represents five years of consistently exceeding the demands of our athletes and just as importantly, anticipating what those demands will be next. While the 25% growth achieved in the first quarter was a great start to the year, we are even more excited with the foundation we are establishing for future growth. Within our Connected Fitness platform, we closed our two acquisitions of Endomondo and MyFitnessPal to create the world's largest digital health and fitness community. We have already added over 10 million unique registered users to our platform since our initial February announcement, bringing the total Connected Fitness community to over 130 million unique registered users. We opened a 30,000 square foot Brand House store on the Magnificent Mile in Chicago, while also debuting our first stores in Brazil and the Middle East which contributed to the 74% international growth for the quarter. We experienced tremendous demand for our new SpeedForm Gemini running shoe and the Curry One basketball shoe with even bigger things to come in these categories. And in our largest product category, Apparel, we crossed 20% growth for the 22nd consecutive quarter. These are powerful engines that will help ensure the Brand remains firmly entrenched as the leading growth company in our industry."
Gross margin for the first quarter of 2015 was unchanged at 46.9%, primarily reflecting favorable product margins in apparel and footwear offset by the impacts of higher air freight and foreign exchange rates. Selling, general and administrative expenses as a percentage of net revenues were 43.5% in the first quarter of 2015 compared with 42.7% in the prior year's period, primarily reflecting costs associated with the two acquisitions, including $6.3 million of one-time deal-related costs. First quarter operating income increased 3% to $28 million compared with $27 million in the prior year's period.

Cash and cash equivalents increased 29% to $232 million at March 31, 2015 compared with $180 million at March 31, 2014. Inventory at March 31, 2015 increased 22% to $578 million compared with $472 million at March 31, 2014. Total debt increased to $677 million at March 31, 2015 compared with $152 million at March 31, 2014, primarily reflecting borrowing to fund the two Connected Fitness acquisitions.

The Company had previously anticipated 2015 net revenues of approximately $3.76 billion, representing growth of 22% over
2014, and 2015 operating income in the range of $397 million to $407 million, representing growth of 12% to 15% over 2014. Based on current visibility, the Company expects 2015 net revenues of approximately $3.78 billion, representing growth of 23% over 2014 and 2015 operating income in the range of $400 million to $408 million, representing growth of 13% to 15% over
2014. The 2015 guidance continues to reflect the net dilutive impact from the Connected Fitness acquisitions, including one- time deal-related costs, as well as the impact of the strong dollar negatively impacting our operating margin within our international businesses.
Mr. Plank concluded, "We are off to a great start in 2015 and have several powerful stories unfolding in the current quarter. We are incredibly proud that Under Armour athlete Jordan Spieth captured the Green Jacket in record-setting fashion at The Masters last week. At just 21, Jordan is already firmly entrenched on the global sports stage and we look to support Jordan throughout his career winning major championships as he adds to his legacy. Following our 2014 expansion into Brazil and the recent opening of our first Brand House store in-country, we look to accelerate our positioning in this important market with our signing of one of the most popular and successful clubs in Brazil, São Paulo Futebol Clube. Building off the success of our SpeedForm platform, we are currently debuting cleated models in both American and global football, including a boot worn by one of our newest athletes, Memphis Depay, who has proven to be one of the most exciting young football players in the world and at only 21 years old has the potential to become one of the most exciting players in the beautiful game. These are big wins for the Brand and we will continue to leverage our innovative product and targeted marketing investments to attack the vast opportunities ahead."

The Company will provide additional commentary regarding its first quarter results as well as its updated 2015 outlook during its earnings conference call today, April 21st, 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.

The Company reports its financial results in accordance with accounting principles generally accepted in the United States ("GAAP"). However, this press release refers to certain "currency neutral" financial information, which is a non-GAAP financial measure. The Company provides a reconciliation of this non-GAAP measure to the most directly comparable financial measure calculated in accordance with GAAP. See the end of this press release for this reconciliation.
Currency neutral financial information is calculated to exclude foreign exchange impact. Management believes this information is useful to investors to facilitate a comparison of the Company's results of operations period-over-period. This non-GAAP
financial measure should not be considered in isolation and should be viewed in addition to, and not as an alternative for, the Company's reported results prepared in accordance with GAAP. In addition, the Company's non-GAAP financial information may not be comparable to similarly titled measures reported by other companies.

Under Armour (NYSE: UA), the originator of performance footwear, apparel and equipment, revolutionized how athletes across the world dress. Designed to make all athletes better, the brand's innovative products are sold worldwide to athletes at all levels.
The Under Armour Connected Fitness™ platform powers the world's largest digital health and fitness community through a suite of applications: UA Record, MapMyFitness, Endomondo and MyFitnessPal. The Under Armour global headquarters is in Baltimore, Maryland. For further information, please visit the Company's website at www.uabiz.com.

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, and the future benefits and opportunities from acquisitions. 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 global business; our ability to successfully manage or realize expected results from acquisitions and other significant investments; 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 lose market share or reduce the prices of our products or to increase significantly our marketing efforts; 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, including due to port disruptions; our ability to further expand our business globally and to drive brand awareness and consumer acceptance of our products in other countries; our ability to accurately anticipate and respond to seasonal or quarterly fluctuations in our operating results; risks related to foreign exchange rate fluctuations; our ability to effectively market and maintain a positive brand image; our ability to comply with trade and other regulations; the availability, integration and effective operation of information systems and other technology, as well as any potential interruption in such systems or technology; risks related to data security or privacy breaches; our potential exposure to litigation and other

proceedings; and our ability to attraci and retain the services ci our senior management and key emplayees. The torward­

looking statements contained in this press re/ease reflect our views and assumptions on/y as ot the date ot this press re/ease.

!Ve undertake no obligation to update any torward-looking statement to ref/ect events or circumstances atter the déte on which

the statement is made or to ref/ect the occurrence ot unanticipated events.

(Tables Follow)

Uuder Almour, ne.

For the Quarter Eucled M=h 31, 2015 and 2014

(UnaudUed; in tltousands, exccpt per sltare amounts)

CONSOLIDATED STATElIENTS OF!l'iCOME

Quarter Ended

March 31,

%ofNet % oflet

2015 Reve ues 2014 Reuues

Net revenues $ 804,941 100.0% s 641,607 100.0%

Cost of goods so1d 421;2n 53.1 % 340,917 53.1 %

Gross profit 377,66.1 6.9% 300,690 6.9% Selling, generai and administrntive expeuses

349,997 43.5% 273,834 42.7%

Incolllt from operations 27,667 3A% 26,856 H% Interest expeuse, uet (2,210) (0.3)% (846) (0.1)%

Other expeuse,uet (1,840) (0.2)% (874) (01)%

Income befol't income tues 23,617 2.9 25,136 3.9 %

Provision for inc.ome ta.xes 11,889 1.4 % 11,598 1.8%

Net income $ 11,728 1.5 % s 13,538 U %

et incomt anilable per oommon share

Basic $ 0.05 s 0.06

Diluted $ 0.05 s 0.06

Veighte-d awrage cotnmon sharE's outstanding

Basic 214,697 212,383

Diluted 219,616 216,912

Uuder Almour, ne.

For the Quarter Euded March 31, 2015 and 2014

(Unaudited; inthousands)

:-o. T Rl:TNUES BY PRODUCT CATECORY

Quarter Ended

March 31,

201 5 2014 %Ch:u:ge

Appare! s 555,455 s 459,249 20.9%

Footwe.ar 160,966 114,044 41.1%

Accessories 63,151 51,538 22.5% Total net sales 779,572 624,831 24.8% Licensing revenues 16,938 12,809 32.2% Collllected Fitness 8,431 3,967 1125%

Total net revenues s 804,941 s 641,607 25.4%

:-o.TT Rl:VEì'BY SIGMENT

Quarter Ended

M.3J"Ch 31,

201 5 2014 %Ch:u:ge

North America s 700,512 s 582,537 20.3%

Other fore-igncotmtries 95,998 55,103 74.2% Collllected Fitness 8,431 3,967 1125%

Total net revenues s 804,941 s 641,607 25.4%

OPERATJ:'G L'COME BY SEGMf NT

Quarter Ended

March31,

201 5 2014 %Ch:mge

North America s 38,369 s 32,920 166%

Other foreign coDltries 4,334 (654) 762.7% Connected Fitness (15,036) (5,410) 177.9%

Total operating inoolllf s 27,667 s 26,856 3.0%

Uuder Almour, ne.

As of March 31, 2015, December31, 2014 and March 31, 2014

(Unaudited; ili thousands)

CONDf.l'iSED CO:'SOLIDATED BALANCE SHEETS

AsS

Asof Asof Asof

3131115 12131114 3/31/1

Cashand cash eqttivalents $ 232,040 s 593,175 $ 179,926

Accomts receivable., net 395,917 279,835 331)99

Inventories 577,947 536,714 472,244

Prepaid expeusesand other e>UTent assets 167,609 87,177 100,857

Deferredincome ta.xes 65,966 52,498 40,831

Total current assets 1,439,479 1,549,399 1,125,157

Property and eqttipmenne.t 359,489 305,564 240,121

Goodwill 595,492 123,256 123,S88

Intangtble assetsnet 87,075 26,230 31,m

Deferred income taxes 14,104 33,570 35,)38

Other long tenn assets 52,415 57,064 42,641

Total assets $ 2,548,054 s 2,095,083 s 1,599,016

Liabilities and Stockholders'[quity

Revol'ing credi fucility, current $ s $ 100,000

Accotmts payable 252,051 210,432 166,920

AccnJed e.')leDSes 137,482 147,681 103,844

ClUTent maturities of long tenn debt 28,347 28,951 4,812

Other ctUTent liabilities 15,339 34,563 11,676

Total current liabilities 433,219 421,627 387,252

Long tenndebt, net of current maturities 398,500 255,250 46,846

Revol'ing credit fucility, long tenn 250,000

Other long tenn liabilities 81,809 67,906 56,;41

Totalliabilities 1,163,528 744,783 490,39

Total stockholders'eqlity 1,384,526 1,350,300 1,108,m

Total liabilitie.s aud st•>'equi!)·

$ 2,:..SS,05.&

s 2, 095, 083 s 1 , 599, 016

Uuder Almotl, ne.

For the Qu.-uter Euded March 31, 2015 and 2014

(Unaudited; inthousands)

CONSOUDATID STATilIEl'OF CASH FLOWS

Cash flows from optratiug acthitie-s

Qnarter Ended

March 31,

2015 2014

Netincome. $ 11,728 $ 13,538

Adjustments to reconcile nel income to net cash used inoperati.ng activities

Depreciation and amortizatiou 21,308 17,320

Unre.alized fore-ign currencyexchange rate losses 21,416 655

Loss on disposal of property and equipment 227 52

Stock-based co anou 9,043 13,220

Defened income tax.es 4,049 (6,913)

C.bangesinreserves and allowances 5,792 2,282

Changesin operating aJsels and liabilities.net of effectsof acqnjsitious:

Accotmts rece-ivable (127,439) (121,091) lnventories (50,303) (3,915) Prepaid e:ther assets (39,899) (15,479) Acconuls payable 40,066 7,141

Accrued expenses and other liabilities (14,264) (25,841)

Income taxes payable and recei'llble (58,250) (28,505) Net cash U9.d inoperating acti, ties (176,526) (147,536)

Cash flows from inn.sting acthitie.s

Pnrchases of property aud "'!tripmeut (68,619) (39,715) Pnrchase.oflmsinesses, net of cash anired (539,109) (10,924) Pnrchases of other assets (2,494) (261) Net cash used in investing activities (610,222) (50,900)

Cash flows from finaucing acthities

Proceeds from revol,iug cxedit facili!)• 250,000

Proceeds from term loan 150,000

Paymeuls on long term debt (7,355) (1,265) Excess tabenelitsfrom stock-based compensation arrangernenls 34,613 24,038

Proceeds ftom exercise of stock options and other stock issuances 2,922 8,627

Payments of debt financing costs (946)

Net cash provided by financing acti1ties 429,234 31,400

Effect of exchange rate changesou cash and cash equivalenls (3,621) (527) Net decrease incash and cash equivalents (361,135) (167,563)

Cash and cash equh-alents

Beginuing of period 593,175 347,489

End of period $ 232,040 $ 179,926

Nou-c.ash innstiug aud financing acthiries

Decrease in accrual for property and equipment $ (195) $ (8,650)

l'roper!)'and eqwpment nncap1tal!zed Jeases $ 5,631 $

Non-cash acquisition of business $ - $ 11,233

Uuder Almour, ne.

For the Quruter Euded March 31, 2015 and 2014

(Unaudited)

Thc. tablc below prc:Jcnt3 tbc rcconcilintiou of non-GAAP financiol mco:nu-C3 to thc most clirccdy corupns·oblc fiunnciol mc-Murc3 c.alculated in accordauce with GAAP. See "Non-GAAP Financiat Infonuat.ioo" above for further inforruation regarding the Cowpauy's use of non-GPAP fmancial measures.

CURRL:'CY:"EUTRAL:"ET RLVE:"UE GROWTH RLCONCILL.TION

Total Ne-t Rennue

Currency neutrnl net revenu. gro\ctb - Non-GAAP Foreign excllange a ct

Net revenue gro\tb -GAAP

North .llltrica

Currency neutral uet revengrowth .Non-GAAP

Foreign exclu:nge 3-C-t

Net revenue gro\th -GAAP

Other fonign countlies

Currency neutrnl net revenu. gro\tb - Non-GAAP Foreign excllange act

Net revenue gro\th -GAAP

BR'.1.'1> HOUSE Ai'FACTORY HOUSE DOOR C:OU:1

Quarter Ended Man:h >l,

2015

271%

(1.7)%

2H%

21.) %

(0.7)%

203 %

85}%

(11.7)%

74.2%

Asof

March 31,

2015 2014

Brand House ? 6

North America total 133 124

Brand House 12 5

Other foreign countries total 20 IO

Brand Home 19 11

Total Doors !53 134

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