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): October 26, 2010

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 October 26, 2010, Under Armour, Inc. issued a press release announcing its financial results for the third quarter ended September 30, 2010. 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. ET on October 26, 2010 to discuss its financial results, and a portion of the script for that call is attached hereto as Exhibit 99.2 and is 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 third quarter ended September 30, 2010.

Exhibit 99.2: Portion of conference call script for October 26, 2010 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: October 26, 2010	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:

Tom Shaw, CFA

Under Armour, Inc.

Tel: 410.468.2512 x6363

Media:

Diane Pelkey

Under Armour, Inc.

Tel: 410.246.5927

FOR IMMEDIATE RELEASE

UNDER ARMOUR REPORTS THIRD QUARTER 2010 NET REVENUES GROWTH OF 22%;

RAISES NET REVENUES AND EPS OUTLOOK FOR THE FULL YEAR; PROVIDES INITIAL

2011 OUTLOOK

• Net Revenues Increased 22% to $328.6 Million

• Diluted EPS Increased 31% to $0.68 from $0.52 in the Prior Year’s Quarter; Includes $0.05 EPS Benefit from Taxes

• Company Raises 2010 Net Revenues Outlook to $1.030 Billion to $1.035 Billion (+20% to +21%) from $990 Million to $1.01 Billion (+16% to +18%)

• Company Raises 2010 EPS Outlook to $1.23 to $1.24 (+34% to +35%) from $1.11 to $1.13 (+21% to +23%)

• Company Expects 2011 Net Revenues and EPS Growth at the Higher End of the Company’s 20%-25% Long-Term Growth Target

Baltimore, MD (October 26, 2010) – Under Armour, Inc. (NYSE: UA) today announced financial results for the third quarter ended September 30, 2010. Net revenues increased 22% in the third quarter of 2010 to $328.6 million compared with net revenues of $269.5 million in the third quarter of 2009. Net income increased to $34.9 million in the third quarter of 2010 compared with $26.2 million in the prior year’s period. Diluted earnings per share for the third quarter of 2010 were $0.68 on weighted average common shares outstanding of 51.2 million compared with $0.52 per share on weighted average common shares outstanding of 50.7 million in the third quarter of the prior year. EPS benefited approximately $0.05 from a lower than expected effective income tax rate of 37.7%, primarily resulting from federal and state tax credits and tax planning strategies.

Third quarter apparel net revenues increased 28% to $276.7 million compared with $215.4 million in the same period of the prior year, driven by strong growth across the Men’s, Women’s, and Youth apparel businesses. Direct-to-Consumer net revenues, which represented 18% of total net revenues for the quarter, grew 47% year-over-year during the third quarter. Footwear net revenues in the third quarter of 2010 declined to $26.5 million from $33.0 million in the third quarter of 2009. The Company had previously indicated that Running and Training footwear net revenues were expected to decline in 2010 compared with 2009.

Kevin Plank, Chairman and CEO of Under Armour, Inc., stated, “Third quarter results demonstrate our growth engines remain strong. Importantly, we see significant opportunities ahead to broaden our consumer reach, supported by continued growth in both our wholesale apparel and Direct-to-Consumer channels. We expect these businesses, along with bringing our licensed hats and bags business in-house and an expected return to growth in footwear, will continue to drive results through 2011.”

For the third quarter, operating income rose to $56.7 million compared with $47.1 million in the prior year’s period. Gross margin for the third quarter of 2010 was 50.9% compared with 49.5% in the prior year’s quarter primarily due to lower sales returns and other reserves, a more favorable year-over-year impact of liquidations and inventory reserves, as well as a higher percentage of revenue from our higher margin Direct-to-Consumer channel. Selling, general and administrative expenses as a percentage of net revenues were 33.6% in the third quarter of 2010 compared with 32.0% in the third quarter of 2009 as a result of continued expansion of the Factory House stores as well as increased investments in product innovation and supply chain. Marketing expense for the third quarter of 2010 was 10.9% of net revenues compared with 10.5% in the prior year.

For the first nine months of 2010, net revenues increased 20% to $762.8 million compared with $634.2 million in the prior year. Net income for the first nine months of 2010 increased 44% to $45.5 million compared with $31.6 million in the same period of 2009. Diluted earnings per share for the first nine months of 2010 increased 44% to $0.89 compared with $0.62 per share in the prior year’s period.

Balance Sheet Highlights

Cash and cash equivalents increased 43% to $133.9 million at September 30, 2010 compared with $93.4 million at September 30, 2009. The Company had no borrowings outstanding under its $200 million revolving credit facility at September 30, 2010. Inventory at quarter-end increased 28% to $196.2 million compared with $152.8 million at September 30, 2009. Net accounts receivable increased 20% to $174.2 million at September 30, 2010 compared with $145.0 million at September 30, 2009.

Outlook

The Company had previously anticipated 2010 annual net revenues in the range of $990 million to $1.01 billion, an increase of 16% to 18% over 2009, and 2010 diluted earnings per share for the full year of $1.11 to $1.13, an increase of 21% to 23% over 2009. Based on the third quarter results and improved visibility for the full year, the Company now expects 2010 annual net revenues in the range of $1.030 billion to $1.035 billion, an increase of 20% to 21% over 2009. The Company also expects 2010 diluted earnings per share in the range of $1.23 to $1.24, an increase of 34% to 35% over 2009. The updated earnings outlook reflects a full year effective tax rate of approximately 39.2%. Based on current visibility, the Company expects both 2011 annual net revenues and 2011 diluted earnings per share to grow at the higher end of its long-term growth target of 20%-25%.

Mr. Plank concluded, “We are excited about the $1 billion net revenue milestone in 2010 and remain committed to taking the next step toward becoming a multi-billion dollar, global brand. To reach our goals we must remain disciplined in investing to grow the business, not just investing to defend. Important steps include the evolution of our current ColdGear product, the introduction of our first basketball shoes this past weekend, and leading the market once again with an innovative new apparel launch in early 2011.”

Conference Call and Webcast

The Company will provide additional commentary regarding its third quarter results and 2010 outlook as well as provide a preliminary view on its 2011 outlook during its earnings conference call today, October 26^th, at 8:30 a.m. ET. The call will be webcast live at http://investor.underarmour.com/events.cfm 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 http://investor.underarmour.com. The Company’s financial results are also available online at http://investor.underarmour.com/results.cfm.

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 fabrications are engineered in many different designs and styles for wear in nearly every climate to provide a performance alternative to traditional 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: changes in general economic or market conditions that could affect consumer spending and the financial health of our retail customers; our ability to forecast and manage our growth effectively; our ability to effectively develop and launch new or updated products; our ability to accurately forecast consumer demand for our products; our ability to obtain the financing required to grow our business, particularly when credit and capital markets are unstable; 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; 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; changes in consumer preferences or the reduction in demand for performance apparel and other products; reduced demand for sporting goods and apparel generally; 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; and our ability to attract and maintain the services of our senior management and key employees. 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 and Nine Months Ended September 30, 2010 and 2009

(Unaudited; in thousands, except per share amounts)

CONSOLIDATED STATEMENTS OF INCOME

	Quarter Ended 9/30/10			% of Net Revenues			Quarter Ended 9/30/09			% of Net Revenues			Nine Months Ended 9/30/10			% of Net Revenues			Nine Months Ended 9/30/09			% of Net Revenues
Net revenues	$	328,568			100.0	%	$	269,546			100.0	%	$	762,761			100.0	%	$	634,194			100.0	%
Cost of goods sold		161,196			49.1	%		136,226			50.5	%		387,832			50.8	%		337,921			53.3	%
Gross profit		167,372			50.9	%		133,320			49.5	%		374,929			49.2	%		296,273			46.7	%
Selling, general and administrative expenses		110,683			33.6	%		86,257			32.0	%		297,764			39.1	%		237,933			37.5	%
Income from operations		56,689			17.3	%		47,063			17.5	%		77,165			10.1	%		58,340			9.2	%
Interest expense, net		(542	)		(0.2	)%		(466	)		(0.2	)%		(1,668	)		(0.2	)%		(1,909	)		(0.3	)%
Other income (expense), net		(184	)		(0.1	)%		96			0.0	%		(1,036	)		(0.1	)%		(253	)		(0.0	)%
Income before income taxes		55,963			17.0	%		46,693			17.3	%		74,461			9.8	%		56,178			8.9	%
Provision for income taxes		21,106			6.4	%		20,511			7.6	%		28,932			3.8	%		24,595			3.9	%
Net income	$	34,857			10.6	%	$	26,182			9.7	%	$	45,529			6.0	%	$	31,583			5.0	%
Net income available per common share
Basic	$	0.68					$	0.52					$	0.90					$	0.64
Diluted	$	0.68					$	0.52					$	0.89					$	0.62
Weighted average common shares outstanding
Basic		50,926						50,046						50,703						49,731
Diluted		51,168						50,749						51,047						50,585

NET REVENUES BY PRODUCT CATEGORY

	Quarter Ended 9/30/10		Quarter Ended 9/30/09		% Change			Nine Months Ended 9/30/10		Nine Months Ended 9/30/09		% Change
Apparel	$	276,666	$	215,427		28.4	%	$	599,507	$	459,706		30.4	%
Footwear		26,458		33,048		(19.9	)%		105,236		127,475		(17.4	)%
Accessories		12,755		10,760		18.5	%		29,130		23,548		23.7	%
Total net sales		315,879		259,235		21.9	%		733,873		610,729		20.2	%
Licensing revenues		12,689		10,311		23.1	%		28,888		23,465		23.1	%
Total net revenues	$	328,568	$	269,546		21.9	%	$	762,761	$	634,194		20.3	%

Under Armour, Inc.

As of September 30, 2010, December 31, 2009 and September 30, 2009

(Unaudited; in thousands)

CONDENSED CONSOLIDATED BALANCE SHEETS

	As of 9/30/10		As of 12/31/09		As of 9/30/09
Assets
Cash and cash equivalents	$	133,936	$	187,297	$	93,376
Accounts receivable, net		174,207		79,356		145,043
Inventories, net		196,170		148,488		152,753
Prepaid expenses and other current assets		21,088		19,989		16,041
Deferred income taxes		10,944		12,870		12,178
Total current assets		536,345		448,000		419,391
Property and equipment, net		76,559		72,926		73,557
Intangible assets, net		4,148		5,681		6,203
Deferred income taxes		20,516		13,908		12,078
Other long term assets		5,295		5,073		4,839
Total assets	$	642,863	$	545,588	$	516,068
Liabilities and Stockholders’ Equity
Accounts payable	$	90,815	$	68,710	$	59,257
Accrued expenses		43,685		40,885		41,949
Current maturities of long term debt		8,067		9,178		8,135
Current maturities of capital lease obligations		—		97		157
Other current liabilities		9,767		1,292		5,852
Total current liabilities		152,334		120,162		115,350
Long term debt, net of current maturities		10,476		10,948		9,985
Other long term liabilities		18,662		14,481		13,219
Total liabilities		181,472		145,591		138,554
Total stockholders’ equity		461,391		399,997		377,514
Total liabilities and stockholders’ equity	$	642,863	$	545,588	$	516,068

Under Armour, Inc.

For the Nine Months Ended September 30, 2010 and 2009

(Unaudited; in thousands)

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Nine Months Ended 9/30/10			Nine Months Ended 9/30/09
Cash flows from operating activities
Net income	$	45,529		$	31,583
Adjustments to reconcile net income to net cash provided by (used in) operating activities
Depreciation and amortization		23,191			20,795
Unrealized foreign currency exchange rate (gains) losses		4,127			(6,135	)
Stock-based compensation		10,046			7,760
Loss on disposal of property and equipment		44			37
Deferred income taxes		(5,116	)		(2,441	)
Changes in reserves for doubtful accounts, returns, discounts and inventories		(4,077	)		(1,213	)
Changes in operating assets and liabilities:
Accounts receivable		(99,502	)		(57,728	)
Inventories		(44,583	)		28,433
Prepaid expenses and other assets		(5,494	)		371
Accounts payable		21,604			(13,885	)
Accrued expenses and other liabilities		9,899			15,093
Income taxes payable and receivable		12,425			2,987
Net cash provided by (used in) operating activities		(31,907	)		25,657
Cash flows from investing activities
Purchase of property and equipment		(22,533	)		(16,049	)
Purchase of trust-owned life insurance policies		(325	)		(35	)
Net cash used in investing activities		(22,858	)		(16,084	)
Cash flows from financing activities
Payments on revolving credit facility		—			(25,000	)
Proceeds from long term debt		5,262			3,567
Payments on long term debt		(6,846	)		(5,580	)
Payments on capital lease obligations		(97	)		(301	)
Excess tax benefits from stock-based compensation arrangements		2,594			4,266
Payments of deferred financing costs		—			(1,354	)
Proceeds from exercise of stock options and other stock issuances		3,796			4,331
Net cash provided by (used in) financing activities		4,709			(20,071	)
Effect of exchange rate changes on cash and cash equivalents		(3,305	)		1,832
Net decrease in cash and cash equivalents		(53,361	)		(8,666	)
Cash and cash equivalents
Beginning of period		187,297			102,042
End of period	$	133,936		$	93,376

EX-99.2

Exhibit 99.2

Under Armour: Third Quarter 2010 Earnings Call, October 26, 2010 (Brad Dickerson)

Thanks, Kevin. With Kevin having taken you through some highlights and strategies for our business, I would now like to spend some time discussing our third quarter financial results.

Our net revenues for the third quarter of 2010 increased 22% to $329 million. Year-to-date, net revenues are up 20% to $763 million. This strong growth was largely driven by apparel, which was up 28% to $277 million during the quarter and up 30% to $600 million year-to-date. Apparel strength was broad-based during the quarter with each of our Men’s, Women’s, and Youth apparel businesses growing at least 25% year-over-year.

Our Direct-to-Consumer net revenues increased 47% for the quarter and 58% year-to-date, representing approximately 18.1% and 19.0% of net revenues, respectively. Similar to last quarter, third quarter net revenue growth was driven by a combination of new Factory House stores, strong same-store sales growth, and the web business. We opened five new Factory House stores during the third quarter increasing our Factory House store base to 50. We expect to end 2010 with approximately 54 total Factory House stores, up from 35 locations at the end of 2009.

Footwear net revenues declined 20% to $26 million in the third quarter, in line with our previous indication that Running and Training footwear revenues were expected to decline in 2010 compared with 2009.

International net revenues increased 60% to $21 million in the third quarter and represented approximately 6% of revenues, up from roughly 5% of revenues in last year’s quarter.

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Third quarter gross margins were 50.9% compared with 49.5% in the prior year’s quarter. Several factors contributed to the 140 basis point gross margin expansion:

• First, we incurred lower sales returns and markdowns, contributing approximately 60 basis points.

• Second, we experienced a favorable impact year-over-year from liquidations and inventory reserves, contributing approximately 50 basis points.

• And finally, we continued to see a higher percentage of revenues from our higher-margin Direct-to-Consumer business, contributing approximately 45 basis points.

Selling, general and administrative expenses as a percentage of net revenues increased to 33.6% in the third quarter of 2010 compared with 32.0% in the prior year’s period. Let me take you through the four major components of SG&A, many of which are consistent with our story throughout 2010.

• Marketing costs increased to 10.9% of net revenues for the quarter from 10.5% in the prior year period, primarily driven by increased sponsorships and higher marketing costs for specific customers. It is important to note that third quarter marketing costs reflect an approximate $2 million shift of certain media costs to the fourth quarter. Given our updated full year plan, we now expect 2010 marketing costs as a percentage of net revenues at approximately 12% compared to our previously indicated range of 12%-13%.

• Second, Selling costs increased to 7.1% of net revenues for the quarter from 6.6% in the prior year period, primarily driven by the continued expansion of our Factory House stores, which carry better gross margins but also incur higher SG&A expense as a percentage of revenue.

• Third, Product Innovation and Supply Chain costs represented 7.7% of net revenues for the quarter compared with 7.3% in the prior year period. This increase was

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primarily a function of increased investments in personnel associated with the design and sourcing of our expanding apparel, accessories, and footwear lines.

• Finally, Corporate Services increased to 7.9% of net revenues for the quarter compared to 7.6% in the prior year period as we invested in additional corporate personnel and facility expenses and information technology initiatives needed to support our growth.

Operating income during the third quarter grew nearly 21% to $56.7 million compared with $47.1 million in the prior year. Operating margin was 17.3% compared with 17.5% in the prior-year quarter.

In other expense, we experienced a net loss of $180 thousand related to foreign currency during the quarter and a net loss of $1 million year-to-date.

Looking at our tax rate, several factors positively impacted our third quarter rate. First, we received a state tax credit, similar to ones previously received in 2002 and 2006, along with a Federal research and development tax credit. Second, we continued to develop and implement our tax planning strategies. These efforts reduced our effective income tax rate in the third quarter to 37.7% compared with 43.9% in the third quarter of 2009, and are expected to result in a full year tax rate of approximately 39.2%.

Our resulting net income in the third quarter increased 33% to $34.9 million compared with $26.2 million in the prior year period. Third quarter diluted earnings per share increased 31% to $0.68 compared with $0.52 in the prior year. While our operations remained strong during the quarter, we did experience approximately a $0.05 favorable impact from the lower-than-expected effective tax rate during the period and approximately a $0.02 benefit from the shift of marketing spend from the third quarter to the fourth quarter.

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Now moving over to the balance sheet. Total cash and cash equivalents at quarter-end increased 43% to $134 million compared with $93 million at September 30, 2009. Cash, net of debt, increased $40 million at quarter-end to $115 million compared with $75 million at September 30, 2009. We continue to have no borrowings outstanding on our $200 million credit facility.

Inventory at quarter-end increased 28% year-over-year to $196 million compared to $153 million at September 30, 2009. In line with previous guidance, inventory growth outpaced net revenue growth as we increased our safety stock around core programs to better meet consumer demand and increased our made-for strategy across our Factory House store base.

Our investment in capital expenditures was approximately $9 million for the third quarter and approximately $25 million year-to-date. We now anticipate capital expenditures in 2010 will come in toward the lower end of our previously indicated $35-$40 million range.

Now moving onto our updated outlook for the remainder of 2010. Previously, we provided an outlook for 2010 net revenues in the range of $990 million to $1.01 billion, an increase of 16% to 18% over 2009, and 2010 diluted earnings per share of $1.11 to $1.13, an increase of 21% to 23%.

Given the sustained strength in our apparel and Direct-to-Consumer channel, our improved visibility for the remainder of the year, and a lower effective tax rate, we are raising our full year outlook. We now expect 2010 annual net revenues in the range of $1.030 to $1.035 billion, an increase of 20% to 21% over 2009. We also expect 2010 diluted earnings per share in the range of $1.23 to $1.24, an increase of 34% to 35% over 2009.

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Similar to last quarter, we want to elaborate on three areas of our updated 2010 guidance: SG&A, taxes, and inventory.

For SG&A, we see year-over-year dollar growth in the fourth quarter approaching 30%. We continue to make the right investments to support our growth platforms. This includes footwear, which was planned down this year, and hats and bags, which are not generating revenue until 2011. It also includes higher personnel costs at our Factory House channel, where we plan to end the year with 54 stores, up from 35 stores at the end of 2009.

Now looking at our tax rate. Our effective tax rate in the third quarter benefited from one-time state and federal tax credits along with an improved outlook relative to long-term tax planning strategies. As we stated earlier, these items will drive our effective tax rate for the full year in 2010 to 39.2%, down from our previous outlook of 42.0%. As we move into 2011, we anticipate our effective tax rate will increase to a range of 40.5% to 41.0% due to the one-time nature of the tax credits received in 2010, however this increase will be partially offset from the permanent impact relative to our continued long-term tax strategies.

Finally on inventory. We continue to see the same factors from the third quarter driving fourth quarter inventory growth ahead of sales growth. This includes an increase in our safety stock and continued investments around made-for product for our Factory House outlet channel. It also includes new product categories for 2011, including hats and bags coming in house and the introduction of our new cotton product.

Before we turn it over for Q&A, we would also like to provide you with a preliminary view for 2011. Based on our current visibility, we anticipate both 2011 net revenues and 2011 EPS growth to be at the higher end of our longer-term growth target of 20%-25%. We intend to give more details on our 2011 guidance in the coming months.

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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: 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 business; 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; our ability to obtain the financing required to grow our business, particularly when credit and capital markets are unstable or tighten; 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; 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; changes in consumer preferences or the reduction in demand for performance apparel, footwear and other products; 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; and our ability to attract and maintain the services of our senior management and key employees. The forward-looking statements contained in this script 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.

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