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Under Armour Management Discusses Q2 2012 Results - Earnings Call Transcript

Stocks in this article: UA

Joining us on today's call will be Kevin Plank, Chairman, CEO and President; followed by Brad Dickerson, our Chief Financial Officer, who will discuss the company's financial performance for the second quarter, followed by an update to our 2012 outlook.

After the prepared remarks, Kevin and Brad will be available for a Q&A session that will end at approximately 9:30 a.m. Finally, a replay of this teleconference will be available on our website at approximately 11:00 a.m. Eastern Time today. And with that, I'll turn it over to Kevin Plank.

Kevin A. Plank

Thanks, Tom, and good morning, everyone. The U.S. athletic business is in a very strong upcycle and our second quarter results speak to Under Armour's contribution to that growth. With revenues up 27% in the quarter, it's clear that our growing capacity to innovate and add value for the athlete is working. Equally important, our results today in 2012 are strong evidence that when we add that value for the athlete, we do not see consumer resistance to price.

Our innovation agenda, combined with our improved ability to sequence product, is enabling us to broaden both our distribution and our share of closet while maintaining our premium brand position.

We are growing on multiple fronts. We're growing our core categories like baselayer [Audio Gap]. We're seeing strong results in kids, golf and outdoor. We're expanding our distribution in categories like underwear where we believe we're just scratching the surface of this major growth opportunity for the brand. And we're getting meaningful traction in Footwear, as we launched UA Spine just last month.

While it's always easier to look for one single piece of compelling news on these conference calls, for Under Armour, the reality is that the whole is greater than the sum of its parts. And that has been a hallmark of our 20-plus percent top line growth over the past 9 quarters. We don't talk about it at majority because we know we are still in the early stages of where our brand can go. But we built a product engine that is starting to take full advantage of the strong equity we have built over the years in the Under Armour brand.

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