Under Armour Reports Third Quarter Net Revenues Growth Of 28%; Raises Full Year Outlook

BALTIMORE, Oct. 22, 2015 /PRNewswire/ — Under Armour, Inc. (NYSE: UA)today announced financial results for the third quarter ended September 30, 2015. Net revenues increased 28% in the third quarter of 2015 to $1.20 billion compared with net revenues of $938 million in the prior year’s period. On a currency neutral basis, net revenues increased 31% compared with the prior year’s period. Net income increased 13% in the third quarter of 2015 to $100 million compared with $89 million in the prior year’s period and diluted earnings per share for the third quarter of 2015 were $0.45 compared with $0.41 per share in the prior year’s period, inclusive of the impacts of the Endomondo and MyFitnessPal acquisitions.

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Third quarter apparel net revenues increased 23% to $866 million compared with $705 million in the same period of the prior year, driven primarily by enhanced product offerings in baselayer and the expanded Storm innovation platform. Third quarter footwear net revenues increased 61% to $196 million from $122 million in the prior year’s period, primarily reflecting continued product expansion across the running, basketball, and training categories. Third quarter accessories net revenues increased 22% to $104 million from $85 million in the prior year’s period, driven primarily by new introductions across the bags category. Direct-to-Consumer net revenues, which represented 26% of total net revenues for the third quarter, grew 28% year-over-year. International net revenues, which represented 11% of total net revenues for the third quarter, grew 52% year-over-year.

Kevin Plank, Chairman and CEO of Under Armour, Inc., stated, “Our scoreboard in the third quarter not only marked our 22nd straight quarter of at least 20% net revenue growth, but also our first $1 billion quarter. Our ongoing success in 2015 has been driven by innovative, head-to-toe product, combined with game-changing performances by our athletes. Leveraging these great successes throughout 2015, our current Rule Yourself global marketing campaign highlights the training and dedication that drives our athletes to be their best on the biggest stages. The campaign features Tom Brady, Misty Copeland, Stephen Curry, and recently named PGA Tour Player of the Year Jordan Spieth. When combined with over 150 million unique registered users across our Connected Fitness community, logging more than 6.5 billion food items and 1.5 billion workouts year-to-date, our brand is resonating with more athletes than ever before and we are investing to not only build deeper relationships with these athletes today, but fulfill our longer term vision to change the way athletes live.”

Gross margin for the third quarter of 2015 was 48.8% compared with 49.6% in the prior year’s period, primarily reflecting the impacts of foreign exchange rates and sales mix, partially offset by favorable product margins. Selling, general and administrative expenses as a percentage of net revenues were 34.6% in the third quarter of 2015 compared with 34.0% in the prior year’s period, primarily reflecting 2015 openings of global Brand House stores and investments to support the Connected Fitness business. Third quarter operating income increased 17% to $171 million compared with $146 million in the prior year’s period.

Balance Sheet HighlightsCash and cash equivalents decreased 36% to $159 million at September 30, 2015 compared with $249 million at September 30, 2014. Inventory at September 30, 2015 increased 36% to $867 million compared with $637 million at September 30, 2014. Total debt increased to $905 million at September 30, 2015 compared with $192 million at September 30, 2014, primarily reflecting borrowing to fund the two Connected Fitness acquisitions.

Updated 2015 OutlookThe Company had previously anticipated 2015 net revenues of approximately $3.84 billion, representing growth of 25% over 2014, and 2015 operating income in the range of $405 million to $408 million, representing growth of 14% to 15% over 2014. Based on current visibility, the Company expects 2015 net revenues of approximately $3.91 billion, representing growth of 27% over 2014 and 2015 operating income of approximately $408 million, representing growth of 15% over 2014. The 2015 guidance continues to reflect the net dilutive impact from the Connected Fitness acquisitions, as well as the impact of the strong dollar negatively affecting our operating margin within our international businesses.

Mr. Plank concluded, “We are experiencing powerful brand momentum in 2015 and we continue to invest to capitalize on our success in the near-term while establishing the foundation for sustainable growth in the future. We are confident that the building blocks to reach our Investor Day target of $7.5 billion in net revenues by 2018 are firmly in place. As we think bigger about the opportunity of our brand, an ongoing focus on investing in key areas like footwear, international, Connected Fitness and manufacturing capability will position us for the long runway of growth beyond just the next three years. Still, with all the success we have seen to date, we firmly believe that we are just getting started.”

Conference Call and WebcastThe Company will provide additional commentary regarding its third quarter results as well as its updated 2015 outlook during its earnings conference call today, October 22nd, 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.

Non-GAAP Financial InformationThe 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.

About Under Armour, Inc.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(TM) 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.

Forward Looking StatementsSome 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 implementation of our marketing and branding strategies, 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 or capital expenditures; 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 currency 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 ability to raise additional capital required to grow our business on terms acceptable to us; our potential exposure to litigation and other proceedings; and our ability to attract and retain 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. For the Quarter and Nine Months Ended September 30, 2015 and 2014 (Unaudited; in thousands, except per share amounts) CONSOLIDATED STATEMENTS OF INCOME Quarter Ended September 30, Nine Months Ended September 30, ————————— ——————————- 2015 % of Net 2014 % of Net 2015 % of Net 2014 % of Net Revenues Revenues Revenues Revenues ——– ——– ——– ——– Net revenues $1,204,109 100.0% $937,908 100.0% $2,792,627 100.0% $2,189,169 100.0% Cost of goods sold 616,949 51.2% 472,608 50.4% 1,448,750 51.9% 1,123,227 51.3% ——- —- ——- —- ——— —- ——— —- Gross profit 587,160 48.8% 465,300 49.6% 1,343,877 48.1% 1,065,942 48.7% Selling, general and 415,763 34.6% 319,194 34.0% 1,112,912 39.8% 858,286 39.2% administrative expenses Income from operations 171,397 14.2% 146,106 15.6% 230,965 8.3% 207,656 9.5% Interest expense, net (4,100) (0.3)% (1,535) (0.2)% (10,572) (0.4)% (3,608) (0.2)% Other expense, net (3,239) (0.3)% (3,355) (0.3)% (5,038) (0.2)% (3,982) (0.2)% —— —– —— —– —— —– —— —– Income before income taxes 164,058 13.6% 141,216 15.1% 215,355 7.7% 200,066 9.1% Provision for income taxes 63,581 5.3% 52,111 5.6% 88,384 3.2% 79,733 3.6% —— — —— — —— — —— — Net income $100,477 8.3% $89,105 9.5% $126,971 4.5% $120,333 5.5% ======== === ======= === ======== === ======== === Net income available per common share Basic $0.47 $0.42 $0.59 $0.56 Diluted $0.45 $0.41 $0.58 $0.55 Weighted average common shares outstanding Basic 215,743 213,522 215,347 213,035 Diluted 221,053 217,982 220,708 217,601

Under Armour, Inc. For the Quarter and Nine Months Ended September 30, 2015 and 2014 (Unaudited; in thousands) NET REVENUES BY PRODUCT CATEGORY Quarter Ended September 30, Nine Months Ended September 30, ————————— ——————————- 2015 2014 % Change 2015 2014 % Change —- —- ——– —- —- ——– Apparel $865,514 $704,557 22.8% $1,936,221 $1,583,834 22.2% Footwear 196,279 121,597 61.4% 510,864 345,177 48.0% Accessories 103,564 84,949 21.9% 249,755 196,419 27.2% ——- —— ——- ——- Total net sales 1,165,357 911,103 27.9% 2,696,840 2,125,430 26.9% Licensing revenues 24,313 22,307 9.0% 59,355 49,800 19.2% Connected Fitness 14,439 4,498 221.0% 36,432 13,939 161.4% —— —– —— —— Total net revenues $1,204,109 $937,908 28.4% $2,792,627 $2,189,169 27.6% ========== ======== ========== ========== NET REVENUES BY SEGMENT Quarter Ended September 30, Nine Months Ended September 30, ————————— ——————————- 2015 2014 % Change 2015 2014 % Change —- —- ——– —- —- ——– North America $1,059,440 $847,563 25.0% $2,440,728 $1,988,141 22.8% Other foreign countries 130,230 85,847 51.7% 315,467 187,089 68.6% Connected Fitness 14,439 4,498 221.0% 36,432 13,939 161.4% —— —– —— —— Total net revenues $1,204,109 $937,908 28.4% $2,792,627 $2,189,169 27.6% ========== ======== ========== ========== OPERATING INCOME BY SEGMENT Quarter Ended September 30, Nine Months Ended September 30, ————————— ——————————- 2015 2014 % Change 2015 2014 % Change —- —- ——– —- —- ——– North America $181,822 $147,509 23.3% $272,543 $227,045 20.0% Other foreign countries 6,180 3,817 61.9% 6,126 (3,910) 256.7% Connected Fitness (16,605) (5,220) (218.1)% (47,704) (15,479) (208.2)% ——- —— ——- ——- Total operating income $171,397 $146,106 17.3% $230,965 $207,656 11.2% ======== ======== ======== ========

Under Armour, Inc. As of September 30, 2015, December 31, 2014 and September 30, 2014 (Unaudited; in thousands) CONDENSED CONSOLIDATED BALANCE SHEETS As of As of As of 9/30/15 12/31/14 9/30/14 ——- ——– ——- Assets Cash and cash equivalents $159,398 $593,175 $249,469 Accounts receivable, net 551,188 279,835 449,221 Inventories 867,082 536,714 637,459 Prepaid expenses and other current assets 136,936 87,177 86,914 Deferred income taxes 60,692 52,498 40,840 —— —— —— Total current assets 1,775,296 1,549,399 1,463,903 Property and equipment, net 478,418 305,564 264,629 Goodwill 591,872 123,256 123,356 Intangible assets, net 79,692 26,230 28,850 Deferred income taxes 42,866 33,570 47,602 Other long term assets 67,358 57,064 49,770 —— —— —— Total assets $3,035,502 $2,095,083 $1,978,110 ========== ========== ========== Liabilities and Stockholders’ Equity Revolving credit facility, current $300,000 $ – $ – Accounts payable 274,285 210,432 273,687 Accrued expenses 188,266 147,681 143,299 Current maturities of long term debt 42,124 28,951 19,524 Other current liabilities 43,929 34,563 53,969 —— —— —— Total current liabilities 848,604 421,627 490,479 Long term debt, net of current maturities 362,550 255,250 172,124 Revolving credit facility, long term 200,000 – – Other long term liabilities 89,094 67,906 61,366 —— —— —— Total liabilities 1,500,248 744,783 723,969 Total stockholders’ equity 1,535,254 1,350,300 1,254,141 ——— ——— ——— Total liabilities and stockholders’ equity $3,035,502 $2,095,083 $1,978,110 ========== ========== ==========

Under Armour, Inc. For the Nine Months Ended September 30, 2015 and 2014 (Unaudited; in thousands) CONSOLIDATED STATEMENTS OF CASH FLOWS Nine Months Ended September 30, ————- 2015 2014 —- —- Cash flows from operating activities Net income $126,971 $120,333 Adjustments to reconcile net income to net cash used in operating activities Depreciation and amortization 72,211 52,391 Unrealized foreign currency exchange rate losses 24,677 4,881 Loss on disposal of property and equipment 434 78 Stock-based compensation 44,800 38,965 Deferred income taxes (15,266) (19,783) Changes in reserves and allowances 19,577 10,794 Changes in operating assets and liabilities, net of effects of acquisitions: Accounts receivable (288,687) (248,256) Inventories (357,874) (176,770) Prepaid expenses and other assets (52,629) (20,282) Accounts payable 58,155 118,236 Accrued expenses and other liabilities 44,863 20,180 Income taxes payable and receivable 9,320 26,737 —– —— Net cash used in operating activities (313,448) (72,496) ——– ——- Cash flows from investing activities Purchases of property and equipment (226,733) (96,596) Purchase of businesses, net of cash acquired (539,460) (10,924) Purchases of available-for-sale securities (80,272) – Sales of available-for-sale securities 68,314 – Purchases of other assets (2,670) (724) Net cash used in investing activities (780,821) (108,244) ——– ——– Cash flows from financing activities Proceeds from revolving credit facility 500,000 – Payments on revolving credit facility – (100,000) Proceeds from term loan 150,000 150,000 Payments on long term debt (29,527) (11,275) Excess tax benefits from stock-based compensation arrangements 40,768 33,056 Proceeds from exercise of stock options and other stock issuances 7,527 14,060 Payments of debt financing costs (947) (1,714) —- —— Net cash provided by financing activities 667,821 84,127 Effect of exchange rate changes on cash and cash equivalents (7,329) (1,407) —— —— Net decrease in cash and cash equivalents (433,777) (98,020) Cash and cash equivalents Beginning of period 593,175 347,489 ——- ——- End of period $159,398 $249,469 ——– ——– Non-cash investing and financing activities Increase (decrease) in accrual for property and equipment $4,800 $(10,601) Property and equipment acquired under build-to-suit leases 5,631 – Non-cash acquisition of business – 11,233

Under Armour, Inc. (Unaudited) The table below presents the reconciliation of non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with GAAP. See “Non-GAAP Financial Information” above for further information regarding the Company’s use of non- GAAP financial measures. CURRENCY NEUTRAL NET REVENUE GROWTH RECONCILIATION September 30, 2015 —————— Total Net Revenue Quarter Nine Months Ended Ended ——– ———— Currency neutral net revenue growth – Non-GAAP 31.1% 29.9% Foreign exchange impact (2.7)% (2.3)% Net revenue growth – GAAP 28.4% 27.6% ==== ==== North America Currency neutral net revenue growth – Non-GAAP 26.3% 23.9% Foreign exchange impact (1.3)% (1.1)% Net revenue growth – GAAP 25.0% 22.8% ==== ==== Other foreign countries Currency neutral net revenue growth – Non-GAAP 67.8% 84.0% Foreign exchange impact (16.1)% (15.4)% Net revenue growth – GAAP 51.7% 68.6% ==== ====

BRAND HOUSE AND FACTORY HOUSE DOOR COUNT As of September 30, ————- 2015 2014 —- —- Factory House 137 121 Brand House 10 5 North America total doors 147 126 === === Factory House 7 3 Brand House 19 8 Other foreign countries total doors 26 11 === === Factory House 144 124 Brand House 29 13 Total doors 173 137 === ===

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CONTACT: Investors: Tom Shaw, CFA, Under Armour, Inc., Tel: 410.843.7676;Media: Diane Pelkey, Under Armour, Inc., Tel: 410.246.5927

Web site: http://www.underarmour.com/