8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): April 29, 2008

UNDER ARMOUR, INC.

(Exact name of registrant as specified in its charter)

Maryland	001-33202	52-1990078
(State or other jurisdiction of incorporation or organization)	(Commission File Number)	(I.R.S. Employer Identification No.)

1020 Hull Street, Baltimore, Maryland	21230
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (410) 454-6428

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition.

On April 29, 2008, Under Armour, Inc. issued a press release announcing its financial results for the first quarter ended March 31, 2008. A copy of Under Armour’s press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference. Under Armour has scheduled a conference call for 8:30 a.m. EST on April 29, 2008 to discuss its financial results, and portions of the script for that call are attached hereto as Exhibit 99.2 and are incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

Exhibit 99.1:	Under Armour, Inc. press release announcing financial results for the first quarter ended March 31, 2008.
Exhibit 99.2:	Portions of conference call script for April 29, 2008 conference call.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	UNDER ARMOUR, INC.
Date: April 29, 2008	By:	/s/ BRAD DICKERSON
		Brad Dickerson
		Chief Financial Officer

EX-99.1

Exhibit 99.1

Under Armour, Inc.
1020 Hull Street
Baltimore, MD 21230
CONTACTS
Investors:
Alex Miyamoto
Under Armour, Inc.
Tel: 410.454.6578
Financial Media:
Brian Williams
MWWGroup@Deutsch
Tel: 201.964.2407

FOR IMMEDIATE RELEASE

UNDER ARMOUR REPORTS 27% TOP LINE GROWTH FOR THE FIRST QUARTER;

FIRST QUARTER DILUTED EPS OF $0.06; COMPANY’S PREVIOUS OUTLOOK WAS $0.03

TO $0.05 FOR THE FIRST HALF

• First Quarter Net Revenues Increased 26.6% to $157.3 Million

• Apparel Net Revenues Increased 24.6% to $129.2 Million

• Women’s Apparel Net Revenues Increased 35.9%

• Company Reiterates 2008 Net Revenues Outlook of $765 Million to $775 Million (+26% to +28% over 2007)

• Company Revises 2008 Income from Operations Outlook to $103.5 Million to $104.5 Million (+20% to +21% over 2007)

Baltimore, MD (April 29, 2008) – Under Armour, Inc. (NYSE: UA) today announced financial results for the first quarter ended March 31, 2008.

Net revenues increased 26.6% in the first quarter to $157.3 million compared to net revenues of $124.3 million in the first quarter of 2007. Based on the seasonality of net revenues and the timing of marketing and other investments, the Company had previously indicated that earnings would be more heavily weighted to the back half of 2008 relative to 2007. First quarter net income was $2.9 million compared to $9.9 million in the same period of 2007. Diluted earnings per share for the first quarter of 2008 was $0.06 on weighted average common shares outstanding of 49.9 million compared to $0.20 per share on weighted average common shares outstanding of 49.8 million in the first quarter of the prior year. The Company’s previous outlook was diluted EPS of $0.03 to $0.05 for the first half of 2008.

Apparel net revenues rose 24.6% to $129.2 million in the first quarter of 2008 with strong growth across Men’s, Women’s, and Youth. Footwear revenues increased 40.2% to $16.6 million primarily due to a limited amount of Performance Training Footwear shipped during the quarter.

“The Under Armour Brand continues to resonate with athletes,” stated Kevin Plank, Chairman and CEO of Under Armour, Inc. “Our apparel business grew 25% with Women’s growing at an

even faster rate at 36%, illustrating the strength of our Brand. By communicating an authentic message and developing innovative products to meet the needs of today’s new prototype athlete, we continue to drive consumers to our Brand. We believe our message of performance enables us to reach both male and female athletes, to expand beyond team sports to individual sports, and to get the consumer to think of us not just as a great athletic apparel brand but a great athletic brand.”

Gross margin for the first quarter of 2008 was 47.6% compared to 48.7% in the prior year primarily due to an inventory reserve taken on excess gloves. Selling, general and administrative expenses were 44.9% of net revenues in the first quarter of 2008 compared to 35.8% in the prior year. The Company had previously stated that it would be shifting a substantial portion of its full year marketing spend to the first half of the year. Marketing expense for the first quarter of 2008 was 17.8% of net revenues compared to 11.1% in the prior year’s period. The Company still expects to invest in its marketing budget at the high-end of the range of 12% to 13% of net revenues for the full year.

Balance Sheet Highlights

Inventory totaled $167.9 million at March 31, 2008, compared to $166.1 million at December 31, 2007 and $80.1 million at March 31, 2007. Inventory at quarter-end included $13.6 million of Performance Training footwear in preparation for the upcoming launch. Based on its inventory management strategy and supply chain initiatives, the Company expects the inventory growth rate to decelerate beginning in the second quarter, with inventory growing in-line with net revenues by the end of the third quarter. Cash and cash equivalents were $17.6 million at March 31, 2008 compared to $40.6 million at December 31, 2007 and $57.2 million at March 31, 2007. The Company had no borrowings outstanding under its $100 million revolving credit facility at March 31, 2008.

Outlook for 2008

The Company’s long-term growth targets are 20% to 25% for the top and bottom lines. Based on the continued strength of the Brand and the Company’s performance in the first quarter, the Company is reiterating its 2008 net revenues outlook. For 2008, the Company continues to expect annual net revenues in the range of $765 million to $775 million, an increase of 26% to 28% over 2007.

The Company had previously estimated a full year gross margin improvement of 40 to 50 basis points in 2008. However, based on the most recent estimates, full year gross margins for 2008 are expected to decrease 30 basis points year-over-year to 50.0%. As a result, the Company is revising its 2008 income from operations outlook to $103.5 million to $104.5 million, an increase of 20% to 21% over 2007. The Company had previously estimated 2008 income from operations to be in the range of $108.5 million to $110.5 million.

“At Under Armour, we have a culture of growth balanced with a culture of profitability,” stated Wayne Marino, Chief Operating Officer. “As we map out the future growth of this Brand, we will continue to make the appropriate level of investment in our team and our infrastructure while continuously striving towards greater operational execution.”

Performance Trainer Launch

Mr. Plank concluded, “On May 3^rd, we enter the next chapter of our growth story with the launch of our Performance Training footwear. Whether it’s creating the category as we did with compression or reinventing the category as we are doing with Performance Training, our proven ability to bring athletes someplace new and generate excitement for both our retail partners and

our consumer is at the core of what we do. We have invested much to get us to the point of launching our footwear this Saturday, and we must continue to invest if we are to realize the opportunities for growth in new categories and new regions. We continue to have confidence in the power of our Brand and our ability to execute against those opportunities.”

Conference Call and Webcast

Under Armour will host a conference call and webcast to discuss its financial results today, April 29^th, at 8:30 a.m. EST. This call will be webcast live at investor.underarmour.com and 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 investor.underarmour.com. The Company’s financial results are also available online at investor.underarmour.com.

About Under Armour, Inc.

Under Armour^® (NYSE: UA) is a leading developer, marketer, and distributor of branded performance apparel, footwear, and accessories. The brand’s moisture-wicking synthetic fabrications are engineered in many different designs and styles for wear in nearly every climate to provide a performance alternative to traditional natural fiber products. 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, with European headquarters in Amsterdam’s Olympic Stadium, and additional offices in Denver, Hong Kong, Toronto, and Guangzhou, China. For further information, please visit the Company’s website at www.underarmour.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: our ability to forecast and manage our growth effectively; our ability to develop and launch effectively new or updated products; our ability to accurately forecast consumer demand for our products; changes in general economic or market conditions; 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; changes in consumer preferences or the reduction in demand for performance apparel and other products; reduced demand for sporting goods and apparel generally; failure of our suppliers or manufacturers to produce or deliver our products in a timely or cost-effective manner; 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; our ability to attract and maintain the services of our senior management and key employees; and our ability to maintain effective internal controls. 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.

Quarter Ended March 31, 2008 and 2007

(Unaudited; in thousands, except per share amounts)

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

	Quarter Ended 3/31/08		% of Net Revenues		Quarter Ended 3/31/07		% of Net Revenues
Net revenues	$	157,342	100.0	%	$	124,329	100.0	%
Cost of goods sold		82,507	52.4	%		63,748	51.3	%
Gross profit		74,835	47.6	%		60,581	48.7	%
Operating expenses
Selling, general and administrative expenses		70,536	44.9	%		44,544	35.8	%
Income from operations		4,299	2.7	%		16,037	12.9	%
Other income, net		510	0.3	%		694	0.6	%
Income before income taxes		4,809	3.0	%		16,731	13.5	%
Provision for income taxes		1,939	1.2	%		6,790	5.5	%
Net income	$	2,870	1.8	%	$	9,941	8.0	%
Net income available per common share
Basic	$	0.06			$	0.21
Diluted	$	0.06			$	0.20
Weighted average common shares outstanding
Basic		48,412				47,619
Diluted		49,949				49,818

NET REVENUES BY PRODUCT CATEGORY

	Quarter Ended 3/31/08		Quarter Ended 3/31/07		% Change
Men’s	$	82,121	$	68,465	19.9	%
Women’s		33,561		24,690	35.9	%
Youth		13,506		10,491	28.7	%
Apparel		129,188		103,646	24.6	%
Footwear		16,598		11,839	40.2	%
Accessories		6,096		5,274	15.6	%
Total net sales		151,882		120,759	25.8	%
Licensing revenues		5,460		3,570	52.9	%
Total net revenues	$	157,342	$	124,329	26.6	%

Under Armour, Inc.

As of March 31, 2008, December 31, 2007 and March 31, 2007

(Unaudited; in thousands)

CONDENSED CONSOLIDATED BALANCE SHEETS

	As of 3/31/08		As of 12/31/07		As of 3/31/07
Assets
Cash and cash equivalents	$	17,591	$	40,588	$	57,202
Accounts receivable, net		101,991		93,515		84,553
Inventories		167,949		166,082		80,068
Prepaid expenses, income taxes receivable and other current assets		11,314		11,642		7,849
Deferred income taxes		12,462		10,418		9,197
Total current assets		311,307		322,245		238,869
Property and equipment, net		57,403		52,332		35,423
Intangible assets, net		6,083		6,470		7,500
Deferred income taxes		9,547		8,173		6,023
Other non-current assets		4,189		1,393		1,503
Total assets	$	388,529	$	390,613	$	289,318
Liabilities and Stockholders’ Equity
Accounts payable, income taxes payable and accrued expenses	$	74,376	$	91,123	$	53,819
Current maturities of long term debt		6,008		4,576		3,469
Deferred income taxes		1,038		—		—
Total current liabilities		81,422		95,699		57,288
Long term debt, net of current maturities		12,807		9,756		2,961
Other long term liabilities		8,495		4,673		2,446
Total liabilities		102,724		110,128		62,695
Total stockholders’ equity		285,805		280,485		226,623
Total liabilities and stockholders’ equity	$	388,529	$	390,613	$	289,318

EX-99.2

Exhibit 99.2

Under Armour: First Quarter 2008 Earnings Call – Brad Dickerson

Thanks Kevin. I would now like to provide some information around our first quarter Income Statement as well as some key Balance Sheet items.

First, our Income Statement.

Our net revenues for the first quarter grew 27% over the prior year quarter. This was largely driven by 25% growth in our apparel sales, highlighted by 36% growth specific to our Women’s apparel.

In April, we successfully implemented a new warehouse management system in our distribution center. As a result of the system switch, some of our customers elected to take shipments in March that were originally scheduled for the first weeks of April. As part of this shift and in preparation for our upcoming launch, a small portion of our new Performance Training footwear was also shipped in March.

In the first quarter, gross margin decreased 110 basis points to 47.6% from 48.7% in the prior year.

The gross margin decline was a result of inventory reserves, primarily on excess glove inventories identified this quarter.

The margin impact of Performance Trainers in the first quarter was more than offset by the strong growth in Direct-to-Consumer revenues, which at a growth rate of 77%, continues to grow at a faster rate and achieve higher gross margins than our overall business.

SG&A as a percentage of net revenues for the quarter was 44.9% compared to 35.8% in the prior year quarter. On television, in print, and in-store, our New Prototype campaign has been ramping up in anticipation of our Performance Training footwear launch this Saturday. In-line with our previously announced plans, we are shifting a greater portion of our marketing dollars to the first half of the year to support the campaign, and

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this was a major driver of the year-over-year increase in SG&A. Marketing increased from 11.1% of net revenues in the first quarter of last year to 17.8% this year. Also contributing to the increase in SG&A growth were increased investments in product innovation and employee equity compensation costs.

Our operating income for the quarter was $4.3 million compared to $16.0 million in the prior year.

Operating margin for the first quarter was 2.7% compared to 12.9% in the prior year quarter. This decrease in operating margin was driven by our lower gross margins and the planned increases in SG&A as previously discussed.

Our effective income tax rate for the first quarter was 40.3% compared to 40.6% in the same period last year. We benefited from a one-time true-up in the first quarter, and expect our full year 2008 effective income tax rate to be approximately 42.3%.

Our resulting Net Income for the quarter was $2.9 million compared to $9.9 million in the same period last year. First quarter diluted earnings per share was $0.06 compared to $0.20 in the prior year. Our previous guidance was $0.03 to $0.05 in total for the first half of the year.

Now I would like to move on to the Balance Sheet.

Total cash and cash equivalents at the end of the quarter were $17.6 million, compared to $40.6 million at December 31, 2007 and $57.2 million at the end of the first quarter of 2007. The year-over-year decrease was primarily a result of investments in inventory and capital expenditures, which I will speak about shortly. For the full year 2008, we continue to expect cash to remain relatively flat from our 2007 year end balance. Currently, we continue to have full availability on our $100 million line of credit facility.

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Net Accounts Receivable increased 21%, or $17.4 million, on a year-over-year basis, which was below our net revenue growth for the quarter. In 2008 we continue to expect Net Accounts Receivable to grow in line with top line growth.

At the end of the first quarter, inventory increased to $167.9 million compared to $166.1 million at December 31, 2007 and $80.1 million at March 31, 2007. It is worth noting that the inventory balance at the end of the first quarter included nearly $14 million of Performance Training footwear in preparation for our launch this coming Saturday.

We expect our year-over-year inventory growth rate to decelerate as we move through the year beginning with the second quarter. By the end of the third quarter, we expect inventory growth to be in-line with sales growth, and by the end of the fourth quarter, we are projecting inventory to grow at a rate below our annual sales growth for 2008.

One item to note is that although we expect our year-over-year inventory growth rate to decelerate, in the second quarter we expect our highest absolute dollar inventory balance of the year as we prepare for the start of our fall season in the third quarter. Wayne will discuss our inventory initiatives in more detail shortly.

As we move to capital expenditures, we always like to point out that we are building the foundation for large, scalable businesses. Our investment in capital expenditures for the first quarter was approximately $9.0 million.

Our full year 2008 capital investments are still planned at approximately $40 to $42 million and will include:

• Approximately $14 million in our branded concept shops and in-store fixtures,

• $10 million in upgrades and improvements to our information technology infrastructure, which is an increase over our previous estimate and includes additional SAP modules specific to inventory and financial planning as well as additional investments to our website

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• $5 million in upgrades and improvements to our existing distribution facilities,

• $10 million for the build-out of new outlet and additional full-price test stores, and

• The remaining balance in general corporate improvements to support our growth.

Now Wayne will take you through our remaining outlook for 2008.

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Under Armour: First Quarter 2008 Earnings Call – Wayne Marino

Thank you Brad, and good morning everyone. Before I discuss our outlook for 2008, I would like to spend a few minutes on our inventory strategy.

Kevin spoke earlier about the strength of the Under Armour brand. The brand connects with the consumer even in the face of a difficult economic environment, and all of us in the organization are focused on protecting and growing this brand.

One component of this is controlling the presentation of our brand at retail. In order to more quickly address current and future seasonal excess inventory, we have put a plan in place to sell more of this seasonal excess product through our outlet channel.

As a result of this strategy, we have lowered our target gross margin for the outlets. Doing so allows us to move units through our existing outlet base at a faster rate but has a negative impact on our full year gross margin outlook in 2008. I should point out that our outlet gross margins are still well above our overall company gross margins. In addition to this tactical decision to more efficiently sell our excess seasonal product, we are now planning to open 9 retail outlet stores in 2008 as compared to our original plan of 5 stores.

The combination of this outlet strategy along with the initiatives we already had in place to reduce the safety stock levels on core auto-replenishment items is expected to result in a slowdown in the rate of our inventory growth as we move through the year.

In addition to these tactical initiatives that I just outlined we are at the same time putting measures in place to improve our operational efficiency. Specifically, we are putting systems and processes in place to improve our production planning process.

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We have recently implemented an S&OP, or Sales and Operations Planning, process that gives us added visibility and control to better manage our inventory. This process allows us to better link the forecasting and sales sides of our organization with the production planning functions.

To complement this process, we are also investing from an IT infrastructure perspective. Coming off the heels of a successful warehouse management system implementation, we have also invested in SAP’s inventory and financial planning modules. The combination of new internal processes and new technology will help us operate faster, smarter, and more efficiently as we continue to strive to be a great growth company coupled with strong operational efficiencies.

We have confidence in the skills and talent of our team, and we believe the approach we are taking will not only allow us to achieve the inventory targets Brad outlined earlier but also lead to greater inventory efficiency in 2009 and beyond.

Now, I would like to move on to our outlook for 2008.

First, I would like to remind you that our long term growth targets remain at 20-25% for both our top and bottom lines.

As you can tell from our first quarter results, the Under Armour brand continues to resonate. Even with over 96% of our 2008 revenues coming from a challenging retail environment in North America, we continue to be a growth leader in our industry. We are able to do this because consumers are still trading up to performance products and selecting our brand. As a result, we are reiterating our 2008 full year net revenue guidance of $765 million to $775 million, which represents 26-28% growth over 2007.

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The outlook for our strategic growth initiatives remains the same:

• We continue to expect our Men’s apparel business to grow in the range of our long-term growth targets of 20-25%.

• Additionally, our Women’s and Youth businesses are expected to grow at an even faster rate, much as they did in the first quarter.

• As Kevin mentioned, we are preparing for the launch of Performance Training footwear this Saturday. We continue to project this to be a one million unit program in its first year, but what is most exciting is the opportunity we see to grow this category while positioning us to introduce additional performance footwear categories in 2009 and beyond.

• We remain excited about the opportunity in Europe and the progress we are making in diversifying our account base, which has grown to over 1700 doors. From a distribution perspective, we continue to focus on authentic, sport specific distribution, and our goal with big box specifically is to further develop our share of shelf space with existing partners. Additionally, we recently announced signings with the Welsh Rugby Union and Hannover 96, a German soccer league club. These sports marketing deals are our first official kit supplier deals in Europe, and they give us an authentic presence on-field in two of our key markets, the U.K. and Germany. Given the retail component of these deals, we believe these signings are sound investments. However, some of the best reaction we have gotten is from our customers, who have shared their excitement about the impact this could have on our brand presence in Europe. While our International revenue in the first quarter was impacted by one of our major accounts in the U.K., we continue to expect our rate of top line growth internationally for 2008 to outpace the Company’s overall year-over-year growth rate. I want to point out that International is in an investment mode and we’re willing to be patient to grow this business for the long-term and be authentic.

• Our Direct-to-Consumer channel continues to be a strong performer across the board whether you’re talking about the web, outlet, or the

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single full-price test store we have in Annapolis. We continue to believe in the opportunity this brand has to communicate and connect directly to the consumer. For 2008, we are planning to test at least 2 additional full-price retail stores.

For the first half, we continue to project top line growth in-line with our full year growth targets of 26% to 28%.

Gross Margin:

Based on the updated outlet strategy I laid out earlier, along with the gross margin detail Brad provided regarding the first quarter, we now anticipate our 2008 full year gross margins to be approximately 50% or 30 basis points lower than 2007. We expect any gross margin impact from the increase in footwear to be largely offset by the growth in the Direct-to-Consumer business.

SG&A:

We will continue to make investments to drive the growth of the brand in 2008 while also investing in initiatives that will drive our long-term growth. Part of what has made this company great is our belief in the opportunity of this brand and our willingness to invest to capitalize on that opportunity. And for 2008, our plans have not changed.

Consistent with what we have stated the last two quarters, we are still planning to invest at the high-end of 12-13% of net revenues for Marketing in 2008. This investment will support the launch of our Performance Training footwear, the installation of additional concept shops, and also encompasses our most recent college signings in the U.S. and our professional team deals in Europe.

This 12-13% of net revenues range – although inline with our previous outlook – is higher than the 11.7% of net revenues we invested in Marketing

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for the full year of 2007. However, we still expect to offset much of the increased year-over-year investment in Marketing by leveraging certain fixed components of our SG&A. Therefore, consistent with our previous outlook, we are anticipating a 40 basis point increase in SG&A as a percentage of net revenues for 2008.

Although our top line and SG&A investment outlook remains the same, the impact of gross margins I mentioned earlier results in a revised outlook for income from operations. We now believe 2008 income from operations will grow 20-21% for a full year range of $103.5 million to $104.5 million.

For the full year, we now estimate our effective tax rate to increase to 42.3%, up from the previously projected 41.6%. Our weighted average diluted share count is still estimated at 50.5 – 51.0 million shares.

We are excited about the future of this brand and the opportunities available to us in Apparel, Footwear, International and Direct-to-Consumer. For 2008 we will remain focused on executing our plans to drive growth while laying the foundation for growth in 2009 and beyond. While the business environment may change, our belief in our brand and opportunity does not. This belief drives our conviction to make an investment in our business each and every quarter, each and every year.

Now, Kevin, Brad and I will take your questions.

Forward Looking Statements

Some of the statements contained in this script 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 script 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: our ability to forecast and manage our growth effectively; our ability to develop and launch effectively new or updated products; our ability to accurately forecast consumer demand for our products; changes in general economic or market conditions; increased competition causing us to reduce the prices of our products or to increase significantly our

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marketing efforts in order to avoid losing market share; changes in consumer preferences or the reduction in demand for performance apparel and other products; reduced demand for sporting goods and apparel generally; failure of our suppliers or manufacturers to produce or deliver our products in a timely or cost-effective manner; 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; our ability to attract and maintain the services of our senior management and key employees; and our ability to maintain effective internal controls. The forward-looking statements contained in this script reflect our views and assumptions only as of the date of this script. 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.

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