UAA - Earnings call transcript Q3 2019

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the Under Armour, Inc.

Third Quarter Earnings Webcast and Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions]. today's being that advised be conference recorded. is Please Instructions]. [Operator hand over to I would speaker conference to like now your the today, Mr. Vice Lance Senior President Relations. Investor Allega, of Thank you. Please go ahead, sir.

Lance Allega

which our they which in third non-GAAP underlying joining and more of of the that call, operational with today's could morning's to lead may including and We to current make be this statements that results release. for morning defined expectations you of These our all will financial results performance true differ everyone and and amounts cause as discussions documents adjusted statements. can uncertainties based morning's Thank Under found use call. are website actual at good information participants do are some non-GAAP Armour's release feel certain materially. on uncertainties business. accurately in are in about.underarmour.com. we terms, regularly quarter forward-looking results On and the XXXX earnings subject detailed because currency-neutral us represent press this These filed on reference We SEC, are our the

investors. found GAAP may accordance with of of this quantify and amounts and also management's to measures items tables provide to to in supplemental the information in view non-GAAP why release, hear can Reconciliations GAAP. You which identify financial US us is be included in press refer the all useful excluded

will be Officer, COO, today's Armour's Dave call and Financial Patrik Kevin us Joining Chief President and and on Under Chairman CEO, Frisk; Plank; Bergman.

Kevin. I'll we'll call turn to over With remarks, questions. the that, prepared our open Following it for

Kevin Plank

Chairman that chapter of the touching Armour's Brand a as Directors. weeks Chief will was and our we planning Chief partnership Armour this our Patrik Patrik defense the centered playbook couple we start of as Patrik's and will And transitioning rigorous and a my to transition discipline, XXXX, from direct oversight passion Board Armour's business This good executing elements Lance. reach about Frisk the an and morning, making against we Thanks, shift three-year of X, currently with our strengthen our January demonstrative, the Inside made to has approach current Executive and our mission, of proven us in I'd around the the transformative Under and strategic the offense. to playbook. are like and to clear helped athletic prospects my outright Under most in unparalleled brand co-architected best transparent Patrik announcement Under we a effective become freedom Officer. to have smartly be succession vision, I our the command Executive history, our decision and today's will goal for strategic execute in to brand the to empower by positions partner, holistically call against. This of confidence culmination vision, values, on leadership, everyone. world. style of His foundational have back

we nearly Infinites, and company team, service profitable Under mission. has have the center long customers, and over our very like we of the proactively we the Under am the for our balancing global growth inspiring underperforming by and built, reason of team just push that the them necessary I Now, story quarter improving extremely better this we this athletes exist equipping is to athletes investments a our areas the fueled Being proud of family, our possible. sustainable, boundaries brand is of is is Armour consumers, anchored what while term. deliver to have decisive century. pillars makes better. you powerful Armour and of work, little of humble pursuit, passioned teammate, the work we beyond your you getting strategic At showing where and serve for the continue our day, on strapping to been to a by in bit putting the celebrating every and journey the our wins shareholders. looking the our a integrity recognizing obsession helps up about better tomorrow learning stronger, get the And A product, – with smarter. hard means HOVR that faster, from the in scars serve, them, business, while

delivered around who are, that forward, moving reignite things maximize areas I and great and these show All as role that the three centers of brand. by And – our brand a incredible sport, long-term be of is magnified we are product critical aspects how this to team how loves power up, in of focused potential. this, of making the three by will authenticated where ultimately help chief, define our we new storytelling will brand to course, growth. the my we These

with the our style, in XXXX, play is at and SPF a win we will with building – Under XXXX drive diligently touch At calendar, – product great HOVR, perspective, with fit years, been of looking and data-driven marketplace. better like performance, delivers some performance to competition, innovation past potential to better to an elevated our that connectivity voice And Under highest brand that first pipeline are will we patience and you Recover, Armour better. will singular, makes Under for will alternative more we consumer clear a combined and efforts digital XXXX, commoditized to our product shortened come, we’ve that marketing, a behind our that is the efforts. engagement, certainly physical returns. of personalize and of where better go-to-market table definitively to Armour how of execute year know brand realized product-specific activate From you that's recovery, have clearly marketing training, success continue seamless a when right the we an stakes choice and began product continue point we to storytelling see In working scale with to we to increasingly the the our with harmonizes points the athletes. the be since our marketing and continue Now, From sharper, otherwise with why powerful, the UA moments brand a arsenal segmented a assets ability telegraphing transformation through assortments, rooted-in-performance and innovations in Armed while demonstrate we resources have in a view. see perspective, discipline. Rush, couple over Armour’s put consumer ability

that line building or gross first to expansion see marketing top on year, may this I product if above long-term earlier against additional were Now, further our quarter we brand plan, our initiatives to we support the margin goals. in our and to invest mentioned call, choose

is we efficiencies, close brand. through, defense pay we track our will a that long-term for close while will the our on margin our that we're there back respect, gross start efforts demonstration strategy. a metrics into to with plan giving Patrik a we to I to brand and marketing to should committed taking deliberate are on Dave from just sign cost And XXXX underscoring out than by are and as Along unlock and are planned line invest that that set and full spend, take ongoing As some reignite best the this increased brand. we potential offense to beginning are our ago. the that for be in This XX day that seen through optionality with off plan, disciplined position and in at shift the us you By XXXX. forth put opportunity to XXXX, growth what proactively this this investor we staying a the against head executing Armour to of Under changes the ourselves stronger top in we days

it With will. Patrik. to that, We I'll turn over

Patrik Frisk

a Thanks, little might Kevin. had voice morning, one everybody. a here last football we Baltimore a but of night. of game I ourselves have heck this coarse Good morning, in bit

So, this thing. I'm power to going through

joined done abilities. And relentless executional departure same athletes may been we're outright to that serving This in has and me long-term the into win. I the few confidence athletes and one detail see and takes the and applied that our in on term, from one that on our of progress is pleased we making. a the vigor unmistakable no better. past innovation attention is the Under prides our there XXXX, culture, an years of operations we've with over making and Armour in some grit all when obsession everything into omnipresent in to I'm short improve our plan. continuously desire companywide although and pursuit This the summer delivering itself puts And to thing goes struck was infused So,

leadership and that Board Both are trust performance. be than industry and structure, and and our more sport it's foundation a With love wrap we patience discipline personally, up me to Kevin get our place; continues to by and January stronger; has am I'll to steadfast me. opportunity in XX the the perfect humbled process, placed are of our experience blend CEO systems, to as respect of Our human Directors and professionally that both lifelong the X, of announcement honored years' I with role work for my in XXXX. assuming and

are just We getting started. truly

to lower American outlet e-commerce relatively Starting I'd from doing, with focus new the of results to our recently on less we're which driven continued was are our three brand showing traffic, that have third slightly to turn second North higher our price similar launched. America. in by our to general traffic with lower slightly AUR. full we than – areas concepts from including quarter reduced Asia-Pacific. encouraging direct quarter, our results. given in expected, challenges start footwear, Independent reasons our down consumer, but reset with volume signs and let's now, AUR. higher I'll stores conversion results some quarter So, by in that conversion that revenue are see work X%, North addressing primarily business yet our like to traffic, house came flat outlets, of for experiencing direct-to-consumer business, In third The stores very

year, DXC to For now slightly. the be expect up full we

Turning third down slightly quarter lower XX%, footwear, we to in revenue was the what had planned. than

manner. Related second demand, and improving the in are a with XXXX, was expected, levels lower to in in compared footwear service increased As demand year's driven differently quarter XXXX. off-price shipments customer timely this to meet amounts channel, softer are through to enabling levels, us sales distributed this service by that result

with to enabling footwear, on points us prioritization playing about segmentation the to our an we into pipeline can price go-to-market includes in across delivered done the runway to categories we a confident clear volume not are our launch of As process we growth think along We're changed. that where opportunity game we've and improving aligned we innovation recalibrate initiatives, moving business, believe expectations in sustainable focus With are and a cadence, greater long marketing forward. our work the have through inefficient a drive methodical amplified ability create reduce win. the

as I approach seen to e-commerce. second The laid excited new with up this shipments to region levels included wanted we last call, amounts DTC year's our remain have particularly distributed growing And distributors, area and and revenue in in increased we the the in door is and our differently in third channel across our X% quarter, from Asia-Pacific, service was XXXX, improved with incredibly quarters. international openings business, out fourth and in our continued In address measured growth a brand. both

more Certainly, line with compared to bit XXXX, weighted quarter. but in lumpy, toward Additionally, are openings little expectations. store the new a heavily fourth

our on with Now, the America North call. in in was last the outlook in X% was the line Revenue to we other quarter, which on provided regions. moving down

negative improved sales off-price in by earlier-than-planned our the revenue, good within in driven to quarter our direct a off-price to business business, the wholesale up reminder, in we've change in result America And results a channel, excluding revenue lower consumer levels positively shipments the was that trending businesses. directly our was X%, in relative wholesale last and impact Within revenue EMEA, primary continued year. a a a by finally, our seen positive by year-to-date, model. driven is growth As Brazilian service channel In were Brexit. sign wholesale, related down related to slight On increase to sales business was X%, price Latin and the impacted healthier. the full note, to underlying the

growth balanced America and Excluding in was Brazil, Latin in by third slightly consumer. up the revenue driven direct wholesale both quarter, to

reminder, the business of fourth As occurred XXXX. in model in change a quarter Brazil the

So, this change moving comparisons. impact year-over-year forward, won't the

and make service in our posted about talk up, progress improving expectations, rate demand, returns XX% higher to in continue sell inventory, we not with decline don't anticipated at and, So, product the much selling had Coming than coupled management. through of before I much well inventory it levels therefore, be buys wrap product ahead the lower remiss we to a we've customer off-price as tighter channel. I'd excess to had we in to incredible means a in have

Dave in updated a more color sales full-year channel important While for shortfall contributing to factor revenue outlook it in this will to off-price outlook, full year. that is note provide our our to the the is

long-term So, XXXX, this our as of in out this I been in closing, more brand, Dave? strength team we the finish never path have and confident forward.

David Bergman

Patrik. you, Thank

Let's in. dive right

the by here, to million, $X.X quarters. impacts into second X% to million, was down down continued channel, our down relative lower to apparel was billion, basis. related by Direct higher $XXX and than XX% product level connected and the continued our little order American fourth a revenue discussed. partner. that $XXX down to million. driven up Accessories And factors revenue improvements e-commerce was with a business traffic X% result to by driven fitness products $XX million, business one-time the our to lower million, by to off-price X% revenue slightly fee color connected driven development shifted subscription previously to workouts was $XXX To and service down North channel, was sales newly XX% from call. give continuing last demand down to Footwear some business outlet and was more our driven to both Patrik million. training $XX and Licensing By North to up strength, in up was building more on revenues was $XXX flow partners the revenue by in consumer conversion growing from this plans to was a category, flat distributor primarily along a Clicking quarter brand revenue momentum which shifts our a with sustainable provided to wholesale to primarily Third our currency-neutral increased for perspective, launched America. we in nutrition due outlook businesses. challenges, add while America X% a planned down X% timing $XXX drive we regional our which softer on for million, to was confidence line and members gym plans up in expected North and international X% third-quarter sales X% was premium From X%, our business. are

basis costs chain expected quarter. Turning mix XXX prior-year in from basis lower-than-planned of to that to and supply XX points the better to be mix point saw XX efforts gross SG&A spend benefits, openings in million, primarily realized we than We cost a will channel; quarter, to to the improvement as coupled due points points and sale lower margin. to to into the well continued marketing favorable XX.X% Clicking factors, $XXX due lower impact approximately of efforts. to from initiatives basis was basis a from related the product off-price X% channel which positive XX continued increased of expenditures. unrealized capital utilized management fourth as store depreciation with expense timing related airfreight; restructuring our and

sheet, the the for other balance in XX%. was tax per line, was Interest $XXX and share. $X bottom this or And income And Cash Patrik were earnings million. our $XXX progress. million. to down Taking to our up income diluted million, we third operating rate effective Third-quarter approximately was XX% expense expenditures million Capital down debt which to better net On million. was inventory net up quarter $X.XX was $XXX were expected. $XXX was XXX% to XX% as continue to Total detailed, than to was $XX great XX% cash and million. million. equivalents make $XXX

XXXX inventory by we and Turning lower-than-planned our X%, We improvement more consumer, from of approximately Relative to expectation direct margin, compared margin points ongoing basis with revenue product due XX to driven to previous in sales. approximately mix points expect changes points adjusted lower to to in gross basis basis channel to foreign chain to gross XXX prior and XX challenges X% excess the currency. outlook. XX favorable channel, improvement to now traffic supply be up conversion compared cost our expectation off-price initiatives, X% negative continued to to now service of impacts ongoing in compared of basis to and XXXX our points lower to coupled airfreight, from including benefits additional off-price expect

our gross basis on should we basis to Lastly, recall points. Therefore, basis, up in points of basis efforts. gross negative margin XXXX, be in points a due restructuring approximately to XX XXXX XXX that, approximately impact had margin XXX GAAP

anticipate SG&A reach on additional $XXX earlier, approaching operating investments now revision of full-year along previously have noted range made $XXX strategic fund cost a we with we a percentage of for we this Even fourth $XX respect, the given are revenue the marketing outlook as upward income incremental million high the to investment, in million. basis. our decision the portion year-over-year with in quarter. flat of to gross underlying reinvest margin, In this holding updating and of digital end As to to we this together efficiencies, million our

approximately structure our at our expense balance driving forward, rate to strategic will net efficiency, improvement. other key investments unchanged to margin remains planned and tax efforts operating Interest this a greater Moving company. is In commitment is with agility for long-term at XX%. and $XX continue create we to focus respect, approximately effective a rate and disciplined million leveraging key cost priority and our our

given to our little a in be of $X.XX Japan. negative is working to to to address our a $X.XX And impact which $X.XX challenges at the plan. we the performance To we provide finally, there, related are number the range EPS more continuing inventory licensee building previously diluted to licensee color double-digit strategic about to end-of-year expect down of Japanese our execute be of our operational low currently against expect We includes of given of and experiencing and beginning our at high-end chain, the a supply and now efficiencies within out in rate. improvements

take growth to drivers the revenue quarter like provide color to would few on I main Now, of moment of fourth our a expectations. a

to wholesale First, cleaner our more levels enabling us meet closer the positions and around inventory to efficiently improving are need. service world demand

all as incremental we as delivery ship year, floorsets. to QX begin timely for an benefit anticipated should more to serve As product spring

DTC. improvements measured in is based openings, Second door see up also assumptions expect our contractual prior-year on With supported to some to by America, settlement licensing an new American finally, we partners. in due in comparison a to North addition we traffic, of royalty one QX improvement. to And in and business our be to expect minimums, North conversion related easier QX

over regulatory address the turn company of operator call typical the published to to not and Justice. US our discussing Q&A, policy we Department the I'd from yesterday investigation or an the regarding article matters Before for litigation by and SEC briefly of an break like any

We our have been in We fully July began information. responding to were their for years. disclosures XXXX inquiries we documents two-and-a-half and To and cooperating practices back firmly appropriate. with believe nearly request that effect, accounting these for of this

with delivering constant Now, premium at the our managing an tactics, excellence. our our amplifying and back that our strategically focused business includes brand are deeply product, hand. to even and in staying toward more innovative which consumers to disciplined, underscore methodical operational I'd eye with we quarter connect

the brand your prudently our energy, to we'll transformation. strides Strides that, questions. the work to beginning deliver have grow With harness we the power long-term. for great over open are call up in made Operator? necessary as We strength and that our to

Operator

Thank you. Instructions]. [Operator

Alex comes question with Sachs. Walvis first Our Goldman from

open. now is line Your

Alexandra Walvis

morning, this digging so by much for wanted revenue change Good into taking Thanks bit. the morning. question in a the I little guys. start to guidance

change? what's give us backdrop slightly in revenue on Could terms the to help a bit? each changed of more in quarter of traffic the those weighing terms online size you since lower So, perhaps part And of reasons or can you we driver sales specifically, growth for of the the in last as conversion on magnitude three guide. North us the little lower help guide, that America key spoke you perhaps of terms of which on then, its explain possibly outlet is

David Bergman

Dave. is This Alex. Sure

are about driver in with weaker in expected, down America, flipside, than really us of talk out QX. also lower other channel. First were we you excess for think we're to lower decline implying to exchange improvements guidance, X%, growth driving all frankly, that's was not of some Quite about of updated the three in also When higher there. the we larger side, QX. than in Availability with relative weaker is and There to similar QX, channel a the year. the the a able finish those the of drivers all, on little relative the main is updated sales about wholesale rates. one little think the the than the North foreign on we're was driving. but expectations off-price did the the the as obviously, for DTC inventory when the in impact we the And bit we largest overdeliver we off-price that anticipated, rate QX, three on to the guidance fairly a DTC operational then

we just a of of America being talked well. to the some improvements the door then we're also an amplified e-com about, excited comp for for that North marketing degree. easier XXXX, concepts, DTC ship the we've improved levels, that commercial but having able fulfillment The QX new which as to mentioned about, QX that that than earlier spring QX is in level in of product and Some also improvements more service previous and

into factors color? you more lot to Patrik, do add a different want of that. So, some going

Patrik Frisk

place what little we in leadership quarter plan a is really We're still North in in third in about the that's I plan. And my plan, the think right? good I bit feel the now is America. script, Well, out XX-quarter of said a

good we strengthening to into Stephanie really the and the onboarding hitting brand continued the a is opportunity which phenomenal said, price an has have which I for The We're ground full where running. us. is foundation, feel earlier more stabilization winning then need than said. the for the to great very there's some balanced we about QX done against and deliver also we we gives marketplace. believe, job have in how the we're that We going trending right? reinvest to that exciting us of we I news think very better about adding and good of feel strongly hope about so And had being originally that. there, We're us, terms Dave thought winners, with actual And bit growing gives we planned, Dave content a which color like grow. little in what is to

Alexandra Walvis

helpful. wholesale I of sell-through Thanks in full One a to off-price now year. price the driving may, better color. previously it if the Is to for the expected? better reduced follow-up, kind Can you that? planned perhaps what's chain That's you it than the much supply or channel so on had for us sales help is understand operations

Patrik Frisk

of Alex. Patrik Hi, again. a It's combination It's both.

to we business the season. delivering able the the The better. as into better the place at other right to product right we're right In is also service the words, stuff So, time. go

inventory that fact now that the is then, we shelves then sales. the type So, of have believe marketplace, into combination quicker ultimately, we us anticipated. of right? old off-price helping the a product the have that really the gives returns, had we're first amount And it's putting on the we helping things now less less decrease that's product of channel that three drive So, we for these than you the

Alexandra Walvis

the for Fantastic. Thanks much very color. all

Patrik Frisk

Alex. you, Thank

Operator

Thank you.

from Baird. comes Komp with question next Our Jonathan

open. now is line Your

Jonathan Komp

the you Can of I for Do in want to North that three just comment going expect, follow-up XXXX? on Yeah. think I that able been you'll expect Hi. to you then, top trend? be first decline where reverse full-year that it's line business. forward, to that Thank on fall years you. for America just you the And business.

David Bergman

should think in We're lot at America, about there's be slightly on. year, working be Obviously, things When giving international, is North of low great excited February. down This we're about double-digit year the a Dave. on we we'll full full you more up to rate. a color which the expect Jonathan. Hey, that on versus but XXXX, that early landing be

Jonathan Komp

then, accounting two And your wanted comment Dave, great. Okay, practices, I really of inquiries the the federal just to on and follow-up into questions.

just maybe materiality ask to more the internally wanted document first, just think, several your requests insights view any presence on but for and hearing there of comments to last I relative of years, the about any sense secondly, give more and from And of then internally just being it any requests now. a of resources the insight applied distraction little could the kind degree involved? you of of

David Bergman

we matter. Jonathan, more to can like certainly appreciate provide that us that you'd Yeah. details regarding

we've practices message, this. been However, the doing were for cooperating two-and-a-half appropriate, think, and most past important entirely so. we on the accounting past That years is to firmly and are prohibited fully from said, I convey that we believe disclosures our that

the and as strong for at now, We looking it brand Under now. Armour we'll So, and the into XXXX we we're to And forward our leave feel focused that reigniting chapter. next on beyond. is like we're foundation continue

Jonathan Komp

understood. Okay,

Patrik Frisk

Jonathan. you, Thank

David Bergman

Jonathan. you, Thank

Operator

you. Thank

comes Erinn with Jaffray. question from next Piper Our Murphy

open. is line Your now

Erinn Murphy

Great. bigger guess, you. morning. first, question. picture Good Thank I

If you you guys plan, point noise. done of round guys have initial a nice lean, to just of been hitting of has turnaround question, bottom out first light. broader despite year your job the little But line a sales the three your bit of inventory kind really macro keeping

that provided last to what to the accelerates from any plan need you there make year? five-year are here? you And sales that tweaks So,

Patrik Frisk

is chapter, XX-quarter Protect the investor confidently laid This remains day, that plan House plan. question question. at timeframe Patrik. that Erinn. into few XXXX. – work the we've work. kind XX-month about works a plan. going it through this going to time and you into be a we're kind have when for Hi, to and and we're in all the But, in, the a ultimately, corner the now business I to the the we and changed calendar we the have the do And in enter to the the Balance of turning brand, plan of that the calendar. we're we work puts takes good work currently plan. turn it's Unfortunately, because of Perform if chapter, This foundation to to love about there. it we you through actually have we forward. has we're very done. way Thanks I the feel short-term, more answer is think as and that continue you can out that the it the the to product, really remember, And because There We still how that the we confident the we And takes drive these the are, here have XX, start you corner that turnarounds, when feel team Nothing there. marketing, next With And you really which that future do able

it. about happy we're So,

Kevin Plank

just Erinn, on in let that script. in well as me covered my that weigh I

picture, big know all, great we that of First endure. brands

in of job our the especially here world as moving we're as room that the and reason time. were to And demonstrating well marketing, that chain, and we all about as I gives see for to us So, supply Under that about is aggressive to sales, guess even quarter, hitting where and benefits comments start creating and special go-to-market playing you'll actually the corner XXXX finally product, to remind continue – offense. ability the Armour can ability and we We've at that that the true more strategy, prepared the I my amplifying same begin exist. invest see mentioned turn it fourth the to in wider ourselves with we be talked into the going to

at this and expecting first the deliver to to version process not but be this X we've and consistent time. you're we're from we'll culture to about due company something able put see be harmonized a to able that will come That X, always that know perfection been into on brand. basis a we better version and implement the than So, really play the

way a as looking that began into criteria So, transformation our data money. brand it's using spending where accelerant smart about up we're effectively we and and have for high new making since really we the our are really holistically is decisions and to we're those our more how that the light

we to brand continuing and in happening we XXXX. quieting work So, company our to our look forward really on amplifying that are and

Erinn Murphy

follow-up. Great, you. just thank And you Kevin, that Maybe, both for then for a response.

how Just and more but can side. you share in you footwear pace a on bit in XXXX just that last apparel question, – the little both kind of and answered the about innovation

Just today with be stories you Thank those of anything can expecting. what some you so we that can on share much. us

Kevin Plank

fundamentals But to amazing that as of foundation and for so heat for we've the last company, and think franchises how business. the we I at the many our we aspect in much weather the started care really the is us, to and care. with beginning that's so, cold the It's get week – begin got turn basics watching accelerate have I it's an things think or here such anchor smarter holistic.

of like going and technology are of Curry, overall through specific setting think either, amplified and it I and can this we this to part like up be that training launch or franchise done, of and building have demonstrating able do about we HOVR, date talk also had innovation things in Rock to Galactic that go-to-market of capable things commercial the eight our truly being we're that toward in-line product, of in funnel with the through new products space. A, it program taking is our Virgin line, announce where we've building points process moments technologies the spacesuits then to

think performer. and I for our I consumer athlete to as focus it we of the is have we innovation that so, that focused And to have soul, target narrowing think and the really it of us identifying heart the this the the range and and speaks commitment the

And so, be showing our them product I building help up. you think and for difference, recover them think. will I that compete see And to really is going it in train,

continue last in really World week. commitment from this come You night that it sports relative our us drive in is consistent the innovation, that a and the Soto brand we the backyard as The to to like winning see like see who of I teenagers showing or Series here one to Patriots with Brady excellence and continue in nationals, innovate it the And and Ravens the at up athletes and it whether think mentioned, over perspective the it's was, watching marketing. going Tom if and last help Patrik you'll for over.

to got platforms, that So, pipeline we've forward. we about excited an we continue and it innovation franchises, stronger going have have we're stronger really only gets and

Erinn Murphy

Thank you.

Operator

Thank you.

Our from Konik Jefferies. next with Randy comes question

now line Your is open.

Randy Konik

I great brands Kevin, Hey, thanks. endure. guess, I and agree, Patrik

lesser create marketplace. enduring get in noise perspective. There's Just that of want the your brands can other some kind to

are that youth How can some traction you go? see brands the perspective, of about been market come for lesser Lower-priced and those market. a those, – How time. think gaining One pricing enduring has you they impacting from the do in some are order of that now? particularly lesser-known side these from the of first. perspective? to impacting Thanks. want we cycle one kind the are perspective apparel other market, brands are your on or Where kind there perspective wholesale with Just two right get in your that that

Patrik Frisk

This Randy. is Patrik. Hi,

see it I'll wants partner think kick to chime my here I I'll if off and in.

this what's how know this allowed been in consumer-centric. to And creating of transformation wasn't two organization has really centric this mindset services matters product evolution specific been You just Kevin with use has for think purposefully to incredibly an more that the consumer company and about what terms an understand interesting consumer. us that we become that's consumer evolution like actually said, over a years. before. able It's now much as last It's we're to not the to data, our

companies there's make where about and to you some ability new long-term can to But to That because once a there's easily what and scientific a as national going to we of the we we I of category understand don't course, when space, actually trying think better. marketplace scaling we're hurdles focused into in to that level also whole we be that where up big really performer the for changer to that I believe believe set opportunity other an our how to get that than going problems a and in is for innovate now smaller company solve forward these get terms So, taking game is matter an when on do stakes especially ability that international an have the in or sourcing are believe space, this now that the size day. us today, some degree in for does can or are as brands ever that up we more before. every they coming entering to fields same play the sustain on high brands actually like a

an feel to we good So, specific chime about for great to Kevin, we've you've history and here? process. very the got and to don't know, actually just in detail from how products very, by product want do a great I data transformed ourselves attention incredible making making driven you consumer, because

Kevin Plank

reflect how more the ability concerned be that, the at above manage to great of us don't for of Yeah. we a to energy participated the what obsess I'll we find sort think ourselves I on next a the noise be and come below. it to But you. maybe to of of I means next where paranoia about who's really of first thinking yet XXth on that always at I've product marks success. the And and continues the and take on of blinders much and and changed for sort it's importantly, call earnings could what's outside external put all. relentless focus when and And that's about who that. how either be the mild reflect probably deliver on. company, it on step that on how we the And of or what it others this we can not back and Today think how public

have forces of will energy on underpin we dedicated and of most up with personality can forces and and processes think keep repeatable it and we're of with basis, built where is by now. position world's do really a the now forces underlie were in and we that I a and it team what to many that systems is

get But the what so, will for us actually it is the competition our be criticality it understand below, we always or out going focus keep we're to to importantly, is, block of above And through. success, forward ability noise whoever our most ourselves be and it. on toward to and there, marching definition prepared the that

through wait see the see this that you'll feel future. today going that And brand for and can't XXXX from forward. and continue You'll to that I

Randy Konik

of things. growth the of the Great. channel like impacted just And off-price you the sounds can of clarity some sales It then, I ask reduction for side footwear category. that on into rate

rate like guys and you footwear some going wins Obviously, for losses a how and So, about of win to platform perspective. of from discuss normalized seems a growth nice be do category? the you category forward the guys the HOVR think in

about Thanks, Just algorithm curious the forward. we growth the how think of business on long-term can footwear guys. going

Patrik Frisk

we've inefficient apparel footwear than platform a what QX, in some coming between it a our for But the is bit QX throughout out do us now space, to shift disciplined it XXXX. And the play been start this which takes this annualizing reducing also in QX space. better There's timing And Ultimately, some of year. out-years. volumes in we're women's we're teams year, and off-price by the in XXXX especially in and ultimately, playing in in long and and But, also earlier of the an we I'll I expecting here in what this chime talked to expect taught flat very accelerate very grow have that run you into Dave, encouraged we in to specifically, what's and year-to-date It's a run our training able off. the performance footwear. successful innovation happening performance the we're we're to year. maybe how And is have lot. been. We're place expecting go different well our to as how about is grow. think HOVR game. footwear We much in. been that's want little today for marketplace the us, the to and understanding footwear marketplace, orchestrated

going innovation alluded here, in a our pipeline forward. do terms belief footwear in So, that footwear of of we color? don't a Dave, bit the strong have, you're if want I we earlier this but you have add shift to a you very very, like, like know, seeing some year, portfolio, to Kevin

David Bergman

perspective growth day a going than possibly the reminder, in investor Yeah. a reasons that lower double a We expected had the down And would XX%. we've apparel, was got to that as we believe for for to amount quick that. that I think fair be CAGR QX guess is and from and long-term already expecting growth I footwear QX higher we still rate going momentum to be growth we the mentioned. just – rate apparel, back

So, we're excited about further talking that in about February. early

Randy Konik

Thank you, guys.

David Bergman

you. Thank

Operator

you. Thank

question from Edward KeyBanc comes Yruma Our Markets. Capital with next

is line Your open. now

Edward Yruma

competitors how correctly. And then, XXXX, then the expect of a second, is question. Hey. first, our you. I you with been bit little know could from through of bigger kind a you're Under know talked think have similar to have guess, cushioning just not Kevin, lines. guess, the maybe of we've I Armour? level multiple I picture. And question. XQ Thank we Good taking on HOVR. start something housekeeping your about for when much I guiding How estimate footwear. just contextualize pleased I follow I we into can service about, some but kind the to guess Thanks showing XQ, so guess, morning. improved

David Bergman

Dave. is This Yeah.

the We can have that's this shipments December, improving when when a that's for And us. towards end service shipments really the levels of improving towards benefit levels, we're those which June anticipating impacts the about service end lot and the really excited you about year talked of of QX. And about. we're think

XXXX. something been that about continue at this is for when We're while expecting that we've of to it quite forecasting So, we QX a think point.

from considered. year, all So, next perspective a full-year that's

to But, where where that first Although more of if to going, and or Patrik, on hold further going add comment December. the about we're want Kevin? you week we're XXXX until to driving, we're excited we're

Kevin Plank

us time that back company, of understanding to to that the what my I apparel that can to curve, address footwear. valid think bring had the be knowing right it be first a does trips me – we speaking it let and of adjusting effective, and footwear from the what an up learning because would good, factories, make making as to how And would point. it XXXX, Edward, mean going mean Starting you there to take.

extraordinary innovation making having investment the thinking and that right things is a of truly about products, the make to down standpoint made holistic segmenting it to now run. the an sure the the approach from we're correctly, we've all it. So, And there important to distribution, we're that way we're set how

we segmented for launched stick manner, today, actually call, we we've technologies with Micro four, midsole truly So, just and roughly in our is HOVR a something Charged, footwear. called G, which Liquify.

right as we there we're does the midsole sophistication to player we is a are something bear to XXXX our in plus in really the but this more just this product, the begin get footwear, we mean business understand to dollar something this come having to that's take So, truly ready see really as and we continuing invest be to to evolution, point, right are to the and technologies the what right build you'll important. believe and billion us And well watching unlock that can on going footwear years frankly price, that capability to forward. XX taken continue going time, it we run

Patrik Frisk

but year, add of us even this opportunity believe well to technology more the at there cushioning a high And in so it's four footwear. We additional important an one great as us enabled And is a the today. to point, think And how to it's about technologies spectrum. us different forward. very it's Kevin's some going really in segmentation important question. have terms Yeah, of really for extent, has to that to some we end

on that the we franchises these that going and we footwear forward. future, we're are for any how point, near understand in going definitely, to to that company platforms. able be the that drive is focused for Kevin's demonstrated now believe for but on starting unlock the do very We've to company of one unlocks to to So, to the doing that be is

Edward Yruma

so Thanks guys. Great. much,

Kevin Plank

Thank you, Ed.

Operator

Thank you.

with Bob from question Drbul next comes Guggenheim. Our

is line Your now open.

Robert Drbul

morning. Good guys. Hey,

two for Just me. questions

that think the performance sight North American in do apparel second a the just if you differential first positive gap you on North when return the look the then, I I us and have have the And at you America? you in really able one can Thanks. between growth update line when question footwear there, is, to and been to you the think on market margin and your can close is, two? you've

Patrik Frisk

Bob. I'll little Thanks, hand start Dave to I'll off this you a color and margins. he'll and the off give on it

December thoughts guys haven't about in with we at to in of what changed that those our about starts last way North investor told the horizon year. things. And compared think we lot any a day a you There's we As how America, time leadership. to think we

leadership We have what we believe place. strong in

strong a We have . go-to-market

of for and to in in the our us. gives our a up encouraging to us our to price also seen end houses price, brand cleansing up show going very, with We've full opening quarter. in innovation first them, plan, way a of year. which three performing have see for the channel. it full great ourselves North breath new consumer in the they open them encouragement And right next when as shows brand to That's in the very started the that of very which the effects entire success respond, We the we're that ones the additional we us is brand above three America are early in really at long or time we of wholesale All last do time.

better wholesale, site in new in we're addition on ability So, moving the to we're of we and work platform e-com work top combination e-com the plan doing I going new of our of doing service North to to additional our to marketing combination stores with layering and next on a think greatly in price that the America, a that enhance year a full that customer do. that's the in

about give which would And months comes that of is hoped. fact terms excited of the the driving really over right the And few way. we're doing that doing to stable that, actually work foundation, in a hard going color happen of on half and year, very this margins. to with make business at earlier back a start that to have earlier little the of the back to he'll we're So, Dave sure we we're that I'll the than lot hand the needs work you the on a the that

David Bergman

we driving working margin, to been footwear Yeah. Bob, gross have forward. hard relative

volume. is that of Some

Some been efficiencies driving chain process. of go-to-market that we've and the the is supply through new costing with the improvements

years, increase So, gross continue drive margin. footwear few our forward over we the and last to

pretty gaining points to So, at at still that we apparel. a this point. the increase closing are every But we gap on is are anywhere gap XXX margin from year footwear. chipping basis gross each it substantial XXX basis versus for points it year. single But definitely away We're

So, we're that gap. forwarding continue to close to and Bob. Thank keep you going driving their

Operator

Thank you.

Our comes from question Jim Stifel. next Duffy with

is Your open. now line

Jim Duffy

questions. Good for my Thanks morning. taking

margin. wanted one First about I for to me, gross ask

And improvement? some pace see what are those a as of which as beyond? tracking key what extent, improvement You're ahead next there. corner reflective a year can to pull continue the of versus upon you and new foundation view to of do that To of guys, levers forward benefits we around you look for

David Bergman

Yeah, Jim. Dave. This is

benefits off-price and some chain fitness supply takes about think sales of what connected and bigger lower mentioned smaller puts higher a you also the As couple of QX, in too. the smaller with mix. we in the ones, from product quarter we the continuing obviously, initiatives There cost airfreight. delivered saw We and are

carry XXXX as help air whole QX, the well licensing one initiatives chain probably lower the that in DTC the out you higher are will a we and carry QX, mix and expect continued QX. and with in benefits including with supply freight. mix think what's so, And us costs driving product about channel into as The to through the biggest year.

and our as all off-price on then, continue those. of stepping down to into And continuing something we're do we'll we to that our to that's towards we've So, as drive XXXX. work step calls, mentioned of many previous on we continue channel, mix

of with we're with higher air with we to all DTC continue So, going drive mix, this with lot costing, channel, beyond. of product as XXXX a seeing freight, off-price the into should and stepping things those forward off year the that tailwinds

Jim Duffy

channels? great. of be from offense. spoke marketing, would Okay, in some Are marketing to quarter more defense then, XXXX? brand Is to digital it more or you and planned the to be up step initiatives through color into fourth planning a brand be specific? should looking guys we you there specific turn you to marketing And Can going for maybe in helpful. traditional more Any Thanks. spend or product foreshadow

Patrik Frisk

what Yeah. marketing, we'll all going able What's you to thanks, and to really This in take about against is we're upper from which is brand it's is we're going as helpful more if a be spend But exciting Patrik. do to Jim. for QX learnings XXXX, funnel enable more marketing. spend, that us XXX-degree a like, XXXX. in precise in approach to about

in four weren't capabilities. that and on want, do the or necessarily to didn't with So, We have of social on. people effect been about capabilities building media, we've of ago think home, other from and we everything impact years space to over in years, be that will focused we're digital the able it to last that consumer out to two-and-a-half how three you competing understanding the to because our terms whatever have

We them. we to every and make increasing with and to capabilities been consideration diligently better we're to play, consumer. ourselves that you'll putting the truly see And place Kevin in market sure is ourselves a market coordinative where understand go like in that that's starting unleash we'll have much across across XXXX, to said, need channel those how we're what now

marketing So, show where you'll up. up, it'll also Armour our sports see where moments to both upper Under a and show marketing holistic be approach funnel athletes

about that. excited very we're so, And

terms journey learnings little the the even XXXX. earlier them year, about starting to of taking really job in to how this think for we're that do better an apply to So,

Kevin Plank

that done storytelling several little years. on be of Patrik haven't a that to top-of-funnel in and I'd probably perspective that consumer just our too. we in will type say, Jim, And, alignment I

is for going you're of sure. And amplitude expect to our you're from/to going what's what about versus getting to you're this different forward we when looking hear this tell this can so, bringing brand, for going differently back, That's story. now the us – hear

Patrik Frisk

a to way great it. That's say Yeah.

Randy Konik

you. Thank Great.

Kevin Plank

Thanks very much.

Operator

you. Thank

next with question Lejuez from comes Our Research. Citi Paul

line is open. Your now

Paul Lejuez

segment? lower drove Paul as about the year, any you there Just the give the deceleration of Lejuez. add And drop Thanks. curious the country for Hey, and little APAC Can in CapEx color year on of of what and was a the for XQ seen by in how next timing you're then, you've second, more into that color guidance first that half guys. off, next biggest the bit deceleration any where you're terms the about well? that in you how you've year? the Was seen shift CapEx just year. a thinking thinking can

David Berman

for flow been always been little DTC the does Dave. bit which that be with had to this distributor to a in continue growth to of Sure, going From retail both relative APAC. e-commerce lowest of have drive orders. and more is has QX great. Paul. This the APAC, was X% But planned out our shipments perspective, QX, timing a quarter channel to in growth Relative the year we of

improved kind little more normalized that, going weighted those heavily be you are in distributor QX And also QX fall expect puts be we're XXXX, because quarterly more and think of demand you levels, to QX. So, will more the QX can then, forward, as QX little which and more bit it's about well. the And that more actual bit in revenues a QX going a as delivering heavy. and with to service the

continuing service kind We see are QX as levels great. in e-commerce think which driving in normally we're also about of forward is to improving well. you those general, QX international, and bigger have through QX, events that When

business normalized both partner that also door doors. finally that Brazil we've of America in amount own larger discussing. QX, mentioned, we openings Patrik model a been as change have And the We then, with Latin and

is driving So, X% all some DTC of lowered our APAC of drive principle you a for of X% you have great CapEx, APAC expansion, and down factors within as to a your XXX, growth going we're year, we're operating brought that of about that hard we've as in things couple a through. investments, lot investor the store changed still investments, to of full think about investments office The bit. that into QX. and there, of far seeing When why little been new range guiding some day which the that well revs. efficiencies things around SAP LatAm When to that -- think cost – build question

distribution it's some renovations there. as of and And takes digital of Some our but we timing initiatives, completed then some timing here office new in puts and Baltimore, savings related cost different of also, efficiencies. center

Paul Lejuez

Yeah.

Anything APAC. Just you'd about one follow up on talk on country.

you are talk you you a by strongest on want the seeing terms there. country Thanks. point take progress to basis. give of China where in you Maybe of country can Anything response to sale, If it product? about specifically,

Patrik Frisk

terms think is across headquarter has penetrate about work happy we're performance in to Paul. China actually. and we've that with to, Patrik. Dave the we expanding to and distribution made very Kong stores. the continue hi, This through And really leadership of been place, Hong new teams I category the the APAC that we're Yeah. investments really the opening office APAC, think enabled our our When there has doing in putting also alluded market also which

in evolving model investor at but the protect to is place plan of the a years, that, we guys foundation a working we a our great have now on hard been The exactly premium distributors the doing also positioning and over really past you job have told we're couple we believe brand. business to terms in of the of where we're China for do strong day, we As team And in leadership us there. place.

our added Only to into So, we too, good. comes I happy model XX% it we think as that APAC, really of the US with we're And very of as that having about the relates have. being thing sourcing I our think an out also feel product China. sourced

well. So, from as we're that perspective protected

think well working APAC. is the I end front incredibly So, us both the backend in for and

Paul Lejuez

Good guys. luck. Thanks,

Patrik Frisk

you. Thank

Operator

you. Thank

comes Sole UBS. question from next Our with Jay

Your now line is open.

Jay Sole

changed. much. so Kevin, that now will you how title has to day-to-day change Thank Great. just you ask want about your your

don't mention for to the on I has November to in give might accelerate seen I gave? you And I like secondly, it business. the business impact then, related. And what weather the about guidance your me. it did [indiscernible]. weather's know couple warmest you'd but was Thank us in that's think, September, about the that. talk Kevin, just weeks. you. that that more If business you impact wondered I And on mean then, relative you've guys Can last talk if weather some assume of you cold XQ, that you that's color the through an

Kevin Plank

Thank you, Jay. Yeah.

mean. build year eternal prophecy that's what got obviously, decision does by an until going So, – that brand. that's some not a happens that the start how long that's going is we're is XX let self-fulfilling goal going me to I to clarity here, to around a And our why, My to just build which, goal – keep forever. adding stop old,

But the You've thinking that. with And do to the we something brand. started get that going. also believe flywheel we it's about I got that can

want handle and line gross – in we're of of those for heavy a someone a had taking as able As being I perfect say, who a professional over in Patrik or into had the is with, ourselves as ourselves this the tomorrow, and Having and want those has industry really your like I Patrik billion I a structured. transformation that really brand getting clean what to being the seeing off-price, that, last whether Armour margin that right-sizing now levels industry for years improvement just really force that and for of now benefits what grown through as frankly, in lead for always be down And partnership as clear our just the $XX company it decision clear as remain full-time experience is and meaning and situation weren't that long find from balance as in $X what two maturity, really getting just – some the all reasons billion and bring we great is have also taking my where and looking my really It's that think, to is through mentioned brands business proud inventory this really company the job. I to business do able we as have priority and as it's for business, come strength combined, is doing we going professional ability the whole. clear endure. step. of I come of to love my it's wasn't of the different a I unmatched reducing be And is creates before. think this and and I or expertise But just ourselves inventory three last we're of Patrik term. to truly up I've things getting today, and professionalization really think our gone Under I'm setting I to several years. through. and to unique will

is new and think not I tirelessly simplifying description product. dozen and focus Patrik have where It be me think, will move It's brought the the I'm this like at and the it some will sure going the with all that a But aspects communication of the making things, for can, think product going really us and obsessing our ability from the of to the forward. and should to HR how as freedom those our on really day-to-day and It was be that really of business way places hours with I've spend terrific. of weekend. that more ability amplifying I to the empowering a for said, got there's you have And the and the, has he home technology of to balance I legal thing running we'd just job that and running one each product to we just aligned, our the together I and continue I review, stared that managing story, so, the And one know, line product, that and than ability to business. on be we're three we in shoes, team elevating last part and sort do impact capacity, say, other week I on in best that aspects of really my that just making don't to sure but do a the unlocking. also out. work we that it's the lead partnership. to

So, other to our we fight. fist to that each face we and well backs that and do and looking pretty forward put we're

Jay Sole

that then, And could about what just of on weather the be if weeks, you XQ and great. talk couple you've question of you. in Thank the the seen Great. terms in acceleration XQ, the last in would

Kevin Plank

Yeah.

little add color to I So, Jay, can maybe that. a

heavy we're marketing to there supporting weather, as from going think little aspect execution that's of is the together, with this be corner play into we've half as the XXXX, in bit and a well but the we of believe back executional also more gradual here to acceleration that, up now just even the too. purposeful to seen coming turn I more not effort. positioned our actually And play the putting benefit a year we

Jay Sole

Got it.

Thank much. you so Okay.

Kevin Plank

Thank you, Jay.

Patrik Frisk

Jay. you, Thank

Operator

you. Thank

Saad Our next question Omar with from comes ISI. Evercore

Your line is now open.

Omar Saad

taking questions. you questions. for my Two Thank

sale Can a Kevin. an us bit ask update bit. little as the getting and has business for the challenge the you couple mentioned promotionality last fact of have had to customer the wanted the on years? on weaning it and a a some I little consumer are going you been of a I to drag one, little where First promotions on have of And not of last quarter, the on about, we more that follow-up is be a been give Under used then, to Armour in online that bit a

Patrik Frisk

sure. so the And company trying what's excess, along around a plan we're continue good is us. and to we're have immune that of Yeah, is process that. ultimately, do as Omar. is as to through balance marketplace. in two to to of or component in We been a been and what absolutely how balancing that premier you be to wash do for will determined not and that, transformation. this you through going turnaround, to a if brand the going And it the to again you Patrik. Yeah, you're and we drive This time some do to like, the beyond what a Hi, trying a we'll gradual course, on do it's and positioning But, process. think we're all a there's the you're has XXXX saying that go gradual as for to we've a really more

but on that next add channel. in or depending a we'll lot where forward to. we on channel a on in bit something think that call in, little that, I have of we're the color it and we're the that, perhaps world are depends more in type looking and And So, more inventory you successful the it's what with you're the less

Omar Saad

helpful. of the could by you. you Kevin ask then, way. That's I And Congrats Thanks. if to both, last question one

lot a you're a level will evolved a lot more Thanks. platforms your has product earlier it a product, at and sounds like how to lines the lot how days Armour talk fit lies. could bit and going that the building Under and passion you about of from to be higher and approach You in? little sounds role talked a product focused your Maybe where

Kevin Plank

Yeah. Thank you, Omar.

not double as happening word restructuring, to reorganizing, the use last I lean as possible. we think Really here our repositioning just the holistic clear make be the get efficiently can that work as – we adding what's and some that so there's happened and processes, we over business, perspective just sure and transformation. years reshadowing several

my that go-to-market a tell within the a fits of and and things have can model one We process. vision energy, regions the four the Latin operating creating the we dream that implemented is course, implemented of we we North and with for best product, global You did it America but APAC, EMEA, America.

was the that I've the to revenues this about just our of of pain had getting talk up dollars go we then half something the fighting. us and to And we've through us really teammates, at center with our through that like we've to business really which the and time transformation of grow sort to over people some billion. period set things the before, that to had XXXX, women's a management, for risk telling $X and we since category this that time, got that to consumer And went allows things – and to billion end billion of this both to with allow all going we're also nearly close that since you the mentioned is growth restructuring heard getting XXXX align of charges, do $X roughly we around ourselves. men's We of it Getting of organized. we're to process everything put do, to been

no eventually feel that I need and is think the truly the it. amplifying that be And running start we're this like done just and thinking to we the be we We being why should look are chapter. there's that say from than standpoint. team same and looking company And brought is really over, really quieting he's the like, think could goal and for the decisions CEO say running the is have And we saying be. next and immediately. about brand first. over up it always for to years And that structure be change. I ability brand, right time play set the that done that I play able Patrik which this several I'm we put now he better at and I to a a think that's and something can out can in point imminent where I to our

the still the As is Patrik plan likes to plan. say,

see management You team. our

executing. heads through in our a the and to in place. XXXX a into we We're have down XXXX. really matter look head I massive in forward next end forward this think, about really we work, us this, a structure And what the chapter play good just the it's coming. head see change of going and isn't we there as the us to calling thing now of putting doing, and matter You and that's It's and of move

ready to $X we're and It's the to there's or reason chapter that it that up at companies about I'll in point. build brand that this looking we It's done is billion, this you, four getting and couple, a why Armour only set talk great industry. forward run. a we're tell Under So, have we're three often. But ready to so be to and next tough

Omar Saad

Best Thank you. luck. of

Kevin Plank

Thank you very much.

Patrik Frisk

Omar. Thanks,

Operator

John you. Thank And with Cowen. Kernan our comes question from next

open. Your line is now

Jared Orr

on Hi. my Thanks question. for for is taking This Orr John. Jared

You gave benefiting surrounding shifts about you that and into some QX if out the based quantify that that cover was of is QX I improvements. the geographies? products what QX service talk and either what the wondering or on

David Bergman

early of Dave. out extra to of but it QX, with heavily quantify also, amount being we levels We late QX those This shipping to is levels product the way. And we most ship January, December June, the it's you late to don't the of we Yeah, little are two international service and expected we when good that, majority where give that. about distributor play a improving would The flow we more go weighted trying as just can as Jared. be and to actually year. in bit into those July impactful improvements, XXXX. in the think that then service color. We're we've in early fair is a product want continue the be and versus planned run A again, phases that

and we hopefully, as to not that give move to we are want dramatic, that and improve they're note continue So, those amounts operationally can around but drive each forward. month forward continue color not we're to extra to we going and,

Jared Orr

taking pricing, with especially One follow-up. Thanks. coming quick Are tariffs forward? the guys you any

David Bergman

Right very back good very and the position. we into from We've US that now, proactive we're starting in amount a China. import kind years of been mitigating the

Relative good tariff feel XB, in X XA List that are like a there and to feel we our and policies pretty about in that's enacted of with and outlook all the List all we're we out really that. good So, considered spot.

our vendors But we're well in it. forward drive with for our to continue and working we're prepared strategy. So, sourcing

Jared Orr

you. thank Yeah,

David Bergman

Thank you.

Operator

very Thank this and participating. much. concludes today's conference call. for Thank you gentlemen, Ladies you

You may now disconnect.

Under Armour (UA) 4 Nov 192019 Q3 Earnings call transcript