PHOTO BY ELI SCHMIDT; MODEL: AJ @ FORD; STYLED BY ALEX BADIA SPECIAL REPORT T 5 1 AT ARMOUR UNDER aims to doublesales by 2013. stopping there: theaggressive company the past decade andahalf.Butitisn’t grown into a$1billionbusiness during grandmother’s house, Under Armourhas basement of founder Kevin Plank’s From its humblebeginnings inthe Chest protector. compression leggings. compression shirtand Polyester long-sleeve SR2 WWD THURSDAY, DECEMBER 1, 2011 Men’s Week SPECIAL REPORT Scores $1 Billion in Sales Through Laser Focus on Athletes Founder Kevin Plank’s cotton T-shirt alternative has created a leading player within the performance apparel industry.

Kevin Plank

byJEAN E. PALMIERI mance apparel didn’t exist, he said. But he knew this much: “Whether you’re in the varsity, playing college sports, wearing soaking wet cotton T-shirts was “absurd,” and professional sports or just want to lose 20 pounds, what we WALKING INTO UNDER ARMOUR INC. headquarters on caused a “mental slowdown feeling. We didn’t invent synthet- inspire in people is a powerful belief,” Plank said. “We can the Baltimore waterfront is like being invited into the locker ics, but we did invent this application.” march 20 scientists in here and say our product is the best, but room of a professional sports team. Although there were plenty of naysayers — the catego- if that kid thinks so, then his mother trusts us enough to spend A bronze statue of a — who is now part of ry doesn’t exist, there isn’t room for a new brand — Plank 20 to 25 percent more. She knows it will last and if it has the the senior management team — stands outside the cafeteria. wouldn’t be deterred. “We decided to create our own pie.” Under Armour logo on it, it’s a guarantee of performance.” When not being used for corporate events, the conference First, Plank had to convince athletes that his product In the past 15 years, the company has expanded beyond center converts into a basketball court. Instead of designing was superior to any other. Eric Ogbogu, who had played with compression shirts into a variety of performance products, offenses and defenses for the football fi eld, the Xs and Os on Plank at Maryland and went on to compete professionally from yogawear and hunting apparel to footwear. The 2010 an- the whiteboards in the offi ces of the executive team detail with the and the , was one of nual report refers to “fi ve growth drivers — men’s and wom- the company’s game plan for growth. the fi rst to try the product while in the NFL. en’s apparel, footwear, direct-to-consumer and international.” The only thing missing is the pom-poms. “A lot of players laughed at a skintight shirt,” Ogbogu re- The company passed the $1 billion sales milestone last Now a $1 billion publicly held sporting goods company called. The initial reaction was that it was “girls’ spandex,” year, with net revenues increasing 24 percent to $1.06 billion. that is celebrating its 15th anniversary this year, Under he said, “and not manly. There were a lot of jokes and clown- Apparel sales — which represent 80 percent of the business Armour’s beginnings were quite humble. ing around about those girly T-shirts, but then quietly, guys — rose 31 percent to $853.5 million, direct-to-consumer rev- Kevin Plank, a football player at the University of would come to me and say, ‘Hey, can you get me one?’” enues increased 57 percent $244.7 million, and the licensed Maryland, couldn’t stand the heavy cotton T-shirts that got Ogbogu, who’s the guy represented by that statue in the business in Japan surpassed $100 million. In the third quar- soaked with sweat after a tough workout. He knew there had lobby and is now Under Armour’s director of camps, com- ter of this year, the company earned $46 million, a 32 per- to be something better, so he came up with the idea of a tight, bines, clinics and pro-leagues, said the players believed the cent increase over a year ago, on a 42 percent surge in sales polyester-blend shirt that would not retain moisture. With a shirts gave them the “edge” they needed on the fi eld. to $465.5 million. The numbers beat analysts’ estimates and little seed money and the help of a couple of jock buddies from For Plank, that’s one of the keys to Under Armour’s suc- prompted the company to raise its fi scal 2011 revenue guid- Maryland, he set up shop in his grandmother’s basement in cess. “Our mission statement is to make athletes better,” he ance to between $1.46 billion and $1.47 billion. Georgetown and gave birth to a new world of sports apparel. said. “Brands are about trust and being honest with con- “I always felt there was an opportunity to build a big busi- In his letter to shareholders in the 2010 annual report, sumer expectations.” ness,” Plank said. “But I also knew I was completely capable Plank writes: “When we fi rst brought the idea of moisture- He relates the story of a single mother from Portland, of totally screwing up.” wicking compression apparel to the market in 1996, our goal Ore., who was shopping with her son in a sporting goods Plank was also smart enough to surround himself with trust- was to make athletes rethink expectations for their apparel.” store. The boy was immediately drawn to the Under Armour ed colleagues who believed in the product and its potential. “I never had a perfect vision,” the 39-year-old president, presentation, but the woman, seeing the prices were high- They include Kip Fulks, chief operating offi cer, who at- chief executive offi cer and chairman said in a recent inter- er than most other products, tried to steer him to another tended Maryland with Plank and was among the fi rst to join view. “But I never believed that it could not happen either. brand. But the boy held up his arms in a Popeye pose and the fl edgling company. Under Armour was an idea whose time had come.” said if he were wearing Under Amour, he could do anything. “I knew Kevin in school but we weren’t friends,” Fulks When Under Armour was launched, the world of perfor- The mother relented. {Continued on page 4}

SR4 WWD THURSDAY, DECEMBER 1, 2011 Men’s Week SPECIAL REPORT

{Continued from page 2} said. “He played football and I played lacrosse, so we were Under Armour has taken over Procter & Gamble’s former headquarters in Baltimore. like oil and water.” After graduation, Fulks was playing lacrosse profession- ally and struggling with “how to get out of the jock world.” A mutual friend told him about Plank’s T-shirt alternative and he signed on to help. “He showed me the product, and as an athlete, I could see that it was lighter, faster and more comfortable,” he said. Fulks, who said he “rarely looks backward, which is prob- ably a flaw,” eventually took on the tasks of product devel- opment, sourcing and manufacturing. “I taught myself ev- erything I needed to know to be a garmento,” he said with a laugh. “I focused on operations, not marketing and sales, which is what Kevin does well.” Despite his success and position, Plank still signs every e-mail Humble & Hungry and acts more like a coach than a traditional ceo, firing up his 5,000 or so employees with motivational phrases and town-hall-style meetings. It’s clear that he relishes the company’s won-loss record and its 15- year streak. Plank speaks in awe about a dinner he had not long ago in Omaha with Warren Buffett, quoting his hero as saying: “The first $1 billion is the hardest.” With sales now exceeding that number, Plank said Under Armour is embarking on “another chapter of growth.” He has said publicly that he expects sales to double by 2013 and sur- rounds himself with those who have no doubt the company can attain that goal. “The only statement that will get you fired around here is, ‘That’s the way we’ve always done it,’” he said. “It took us five years to get to $5 million, five more years to get to $300 million and the last five to get over $1 billion. We’ve grown 42 percent over the last two quarters. The challenge is how to keep up with a moving decimal point.” He said the mistake many companies make once they’ve achieved some success is that “they think they’re Ralph

Lauren and can do 15 different categories.” The genius of SAMUEL GORDON PHOTO BY Ralph Lauren, he said, is that over the past four decades, he has remained true to his vision and can now put his name to the market, such as Charged Cotton, billed as “the world’s shareholders. Fulks has a road map in his head on how to on everything from neckties to paint without anyone batting first true performance cotton that dries up to five times faster get there. an eye. So instead of raising eyebrows by seeing his paint in than ordinary cotton.” Introduced in January, the collection of “That’s really easy,” he said. “We have no big interna- Home Depot, the reaction is “if it’s Ralph Lauren paint, it men’s and women’s shirts and shorts, and capri women’s tights, tional business and we believe our product, messaging and must be richer and better,” Plank said. use alternating hydrophilic (moisture absorbing) and hydro- branding can go international. That’s a huge door for us. “We’re only 15, but by the time we’re 40, I want to sell in phobic (moisture repelling) cotton yarns. This allows moisture “And we’ve just figured out the women’s business, so the Home Depot, too,” he continued. to spread across the surface area of the clothing, speeding expectations for that are way bigger as well.” For now, Under Armour is determined to excel at each of evaporation and helping to keep the athletes cool. Expanding distribution is also key to growth. Today, the product categories it offers today. Plank is proud of such technological breakthroughs — nearly all sales come from the sporting goods channel, with According to Fulks: “We’re not planning a lot of new prod- many of which actually originated outside the walls of the Dick’s and Sports Authority the primary customers. “Other uct categories, but we’re staying focused on what we’re in Under Armour complex. He tells of the company’s inaugural companies sell their products everywhere,” Fulks said. “So and making them really productive. We’ve gotten more disci- innovation contest this fall, where entrepreneurs came to there’s a lot of opportunity there, too. It’s not easy, but we’ve plined about entering new categories.” Under Armour and submitted products they had invented. proven that we’re tenacious.” Plank added: “Saying ‘no’ is some of the best decisions From dozens of submissions, Under Armour found four it ex- Fulks said specialty store distribution is “very alluring, we’ve made.” pects to bring to market, although the company is keeping so we’re always exploring that. And we’re not sold where Whatever categories the company takes on, the products go the details under wraps. women shop” — department stores. Fulks said the company through rigorous testing to ensure they offer something unique “We want to become a center of energy for entrepre- is “dabbling” within that channel now and for spring will neurs,” Plank said. have underwear fixtures at 370 doors at retailers including He relates the story of the Coretection Nordstrom, Macy’s and Dillard’s. Its women’s Studio line of Short, a compression short that was created yogawear is also distributed through that channel. by a Canadian physiologist that had taken hold “We recognize that it’s a different model with a different with players in the NHL because of its ability cadence and can be very promotional,” he said. “We also to deliver stability to the lower back, hips and know the shopper is different.” The company has been test- pelvis. “We said we can either knock it off, or ing that channel for three years and expects to have a “better buy it,” Plank said. “So we struck a deal with game plan” within the next 24 months. “We won’t say we’ve [the inventor]. He was going to sell 20,000 units knocked it out of the ballpark on the first go,” he said, “but it at $35 and we’ll sell hundreds of thousands of will add a whole other level to our growth.” units [at $44.99 or $59.99]. So Under Armour The promotional posture of most department stores goes wins and the engineer wins.” against the grain for Under Armour, whose products are That’s not to say every innovative product rarely offered at sale prices. “We’ve found that if you put brought to market by Under Armour comes enough make and design into a product,” Fulks said, “you from outside. The company operates its own don’t have to discount it.” innovation lab at the Baltimore headquarters To clear excess inventory, the company instead operates where technicians conduct extensive test- 95 outlet stores that accounted for more than $100 million in ing on all new products. The items are run sales last year. There are also four regular-price stores the through everything from fabric testing and company is using as a test, but Fulks said there are no plans washing to laser cutting. A manufacturing fa- for a big rollout of Under Armour stores. cility produces prototypes that are then tested Its most recent move into retail came this fall when the in environmentally accurate simulations. company opened its fifth Under Armour store, in Vail, Colo. Among the most recent items to be given the That store offers the Mountain collection of apparel targeted green light by the innovation lab is the E39, a to the snow-sport enthusiast. “It’s not a huge business, but compression shirt fitted with electronic sen- it’s some of the coolest product in the building,” Fulks said. sors to track biometric data including heart and So whether it’s football, soccer or skiing, Under Armour breathing rate and core acceleration/body posi- strives to appeal to a wide range of sports participants. tioning. The Armour Bra for women, unveiled “Every great brand is a story with chapters,” Plank said. at an event in New York last week, will offer “We have to manage the cadence of that story. Chapter 1 band and cup sizing, removable perforated needs to make sense to Chapter 2.” cups and antichafing properties. And Plank is nothing if not patient. “We made our first “We could get pulled in 50 different direc- footwear hire in 2003 and launched our football cleat in tions, so we have to decide what we’re going to 2006. From 1998 to 2007, our Japanese business only grew to concentrate on,” said Kevin Haley, who joined $35 million, but this year, it’s [experienced] 30 to 40 percent Under Armour as its corporate attorney six growth. We stuck with it and didn’t bail out. We value conti- years ago and now serves as senior vice presi- nuity and letting things gel.” dent of innovation. Under Armour’s executives do admit there have been a “We’re receptive to outside ideas,” he said. couple of misses over the years. “We yanked an entire wom- “This is a cool lab, but ideas could come from en’s line prior to launch,” Fulks said. “We know when to cut somewhere else around the globe. We want bait. But we never get caught up in something we do wrong. people to bring their ideas to Under Armour.” We screw up, but we just get back to work.” This unrelenting focus on innovation is per- The company also stumbled in its initial move outside haps the most important element of the com- sport cleats. Kevin Plank in the early days. pany’s goal “of becoming the athletic brand of Gene McCarthy, senior vice president of footwear, said this generation,” according to Plank’s letter to {Continued on page 6} 15 YEARS SR6 WWD THURSDAY, DECEMBER 1, 2011 Men’s Week SPECIAL REPORT

Compression shorts, the new E39 shirt and updated footwear.

{Continued from page w} that while Under Armour’s football and base- ball cleats had obtained a 25 percent market share and its first training shoes were suc- cessful, once it tried to move into the run- ning shoe arena against the likes of Nike, Reebok and Adidas, the launch was a dud. “We had to recalibrate the business,” admitted McCarthy, who spent 21 years at Nike, including five with the powerful Jordan brand. “The world doesn’t need another shoe company.” With a slew of strong competitors, Under Armour’s shoes “looked just like everybody else’s.” So McCarthy set out to “lever- age the success and legend of Under Armour and complete the message below the ankle.” The result was the Charge RC, a $120 running shoe that employs the com- pany’s proprietary Heat Gear technol- ogy that wicks moisture and keeps the feet cool. The design was also updated, and when the shoes went on sale on the Under Armour Web site on Oct. 1, they sold out. “There’s an appetite for a new player,” McCarthy said. “We want our shoes to stand out so that even without the logo, you know it’s Under Armour.” The marketing message? “The fit that changed every- thing, now available for your feet,” McCarthy said. Catchphrases such as these are a hallmark of the com- pany. Under Armour spends some 12 percent of its revenue on marketing, which translated into $120 million in 2010 and will come close to $250 million in 2012, Plank said. poohed the reports, saying: “I don’t think they’d buy us and I destiny. Right now, there’s not a number that can be compel- The company dresses professional and collegiate teams don’t think we’d sell to them.” ling enough to sell. and is the official outfitter of Auburn University, Boston Nevertheless, as the company’s ceo — one who owns 22 “I think we can be a multibillion-dollar global business. College, Texas Tech University, the University of Maryland percent of the stock and controls 74 percent of its voting We’re on a mission and we feel there’s unfinished work to and others. Since 2006, it has been the official supplier of foot- power — he said, “My fiduciary responsibility is that if some- be done. There are two megaplayers and a bunch of others wear to the NFL, an association that has since expanded into one offers a number bigger than what I believe I can get to, in our business, but we’re still able to break through. We’re gloves and will include training apparel next year. It also sup- it’s my obligation to consider it. But we have a shot at becom- competing against the biggest and the best, but if I were com- plies performance footwear to Major League Baseball. ing the next major brand in sports and we control our own peting against us, I would be concerned.” Internationally, the company dresses the Hannover 96 soccer club and the Welsh Rugby Union. It also sponsors high-profile athletes including skier Lindsey Vonn, football player Tom Brady, Ironman triathlete Chris McCormack, swimmer Michael Phelps and golfer Hunter Mahan. Even so, Fulks, who said it wasn’t until the company hit the $1 billion revenue milestone that he took time to exhale, knows that Under Armour must stay on its toes to continue on the growth track. “We’re competing against great compa- nies,” he said. “Even the private label stuff today is great. If we rest on our laurels, we won’t get ahead in today’s game. We celebrate wins, but we’re always looking for the next game.” There’s plenty of game left to play since Under Armour, even with its growth, still lags far behind its larger activewear rivals. In 2010, Nike, the industry leader, had a 7 percent market share of the U.S. sports apparel market, according to Sporting Goods Intelligence, to Under Armour’s 2.6 percent. The Adidas Group came in second with a 5.5 percent share. Every few months, the rumor crops up that Under Armour is going to be sold to its rival, Nike. But Plank pooh- THROUGH THE YEARS

1996 Kevin Plank graduates from Kevin Plank in his playing days. University of Maryland with a degree in business administration. 1996 Sells first 0039 compression shirt to Georgia Tech. 1997 Introduces the Cold Gear mock turtleneck. 1999 Runs first ad on ESPN. 2003 Launches signature “Protect This House” campaign. 2004 Enters women’s business with the launch of the duplicity bra. 2005 Under Armour goes public. 2006 Enters footwear business with the Click Clack cleat launch. 2008 First Super Bowl commercial airs for The New Prototype trainer shoe. A “Protect This 2009 Introduces Catalyst recycled House” commercial. product with shirts made from four plastic water bottles. 2010 Under Armour hits $1 billion in sales. 2010 Introduces basketball shoe. 2011 Launches Charged Cotton, a performance fabric for shirts and shorts. 2011 Introduces E39 biometric shirt. 2011 Launches Charge RC running shoe A bra and compression shirt. Right: Under with Heat Gear technology. Armour’s first ad for the brand.

SR8 WWD THURSDAY, DECEMBER 1, 2011 Men’s Week

Nylon long-sleeve compression shirt and polyester shorts. Knee pads and gloves.

TRUE ARMOUR With the mission statement to “make all athletes better,” Under Armour has expanded from its signature compression shirt into a full athletic lifestyle brand and a leading force in the performance apparel field. – Alex Badia RITTANY SEGINA RITTANY

PHOTOS BY ELI SCHMIDT MODEL: AJ @ FORD; GROOMING BY ANGIE BARTON @ FORD ARTISTS USING DIOR SHOW; FASHION ASSISTANT: LUIS CAMPUZANO; FASHION INTERN: B CAMPUZANO; FASHION LUIS ASSISTANT: USING DIOR SHOW; FASHION FORD ARTISTS @ ANGIE BARTON MODEL: AJ @ FORD; GROOMING BY ®

CONGRATULATES

KEVIN PLANK ON FIFTEEN YEARS OF INNOVATION AND SUCCESS

KP,

We are honored to have made Under Armour’s first football sock and to be Under Armour’s first license partner in 2003.

Glenn Chamandy, Eric Lehman, Steve Lineberger, Rodney Tesh, Michael Schroeder, Michelle Cannon, Kristen Sims, Tiersa Morrow, Johnny Moe and the entire Gildan Team congratulate you on 15 years and know that your story has only just begun.

©2011 Gildan Activewear Inc. All rights reserved SR10 WWD THURSDAY, DECEMBER 1, 2011 Men’s Week

Polyester short-sleeve compression shirt, nylon long-sleeve compression shirt and nylon shorts.

Polyester jacket, compression shirt and compression tights.

Cotton hoodie and Polyester polyester pants. compression shirt and shorts. Shooter sleeve.

SR12 WWD THURSDAY, DECEMBER 1, 2011 Men’s Week Under Armour’s Unofficial All-Star Team It’s pretty much impossible to speak with Under Armour senior staffers without them quoting founder Kevin Plank. Driven and motivating as he is to his employees, Plank is becoming increasingly reliant on his senior management team as the brand moves into new regions and categories. Here, a look at some of the key players on his corporate varsity squad. — Rosemary Feitelberg

BACK STORY: Seven-year company BACK STORY: Joined the company veteran, studied sports management at 18 months ago from American St. John University. Eagle Outfitters.

M.O.: Sponsorship of Tottenham M.O.: “One thing that is always the Hotspur, a 129-year-old soccer team focus of our business is that we like with a built-in fan base of 20-million- to get into one category and do it plus. Supports grassroots, AAU, high really well. We’re pretty aggressive. school and collegiate basketball Kevin likes to say, ‘No loser talk.’ teams, as well as a handful of elite We can control the controllable. We pro athletes. During the NBA strike, know people continue to play sports. Brandon Jennings and others played We’re not worrying about the demise against high schoolers. “Few players of the Greece’s parliament or the at that level will get on a bus and successor to [Silvio] Berlusconi.”

THE TAKEAWAY: The brand is looking into THE TAKEAWAY: “Everything we do doing a DVD documentary about New is going to perform. We will continue England Patriots quarterback Tom to innovate because athletes expect GLOBAL SENIOR VICE SENIOR VICE Brady about what it’s like to be in the PRESIDENT innovation from us. We do have PRESIDENT NFL. Where else but on an ad shoot FOR APPAREL, the ability to do more lifestyle and OF SPORTS would Brady have allegedly said, OUTDOOR AND sportswear.” Targeting Europe and MATT MARKETING “If I knew at 22 what I know now, I HENRY ACCESSORIES Asia for further growth, but “Where MIRCHIN would have had a lot more fun.” STAFFORD don’t we see opportunity?”

BACK STORY: Had to be the one to break STEVE BATTISTA STUART REDSUN it to what used to be a male-heavy design BACK STORY: Nineteenth employee BACK STORY: Joined in October after team that pink and baby blue are not sure- hired, former sportswriter and a force runs at Sony, Motorola and Nike. Has fire ways to woo female shoppers. behind the “Protect This House.” spent a good deal of time in Asia.

M.O.: Is banking on Smart Design M.O.: Relay the brand’s homespun M.O.: Ramp up social media through technology to help boost business, as ways through campaigns like “Are grassroots events like its Undeniable well as women’s and men’s underwear You From Here?,” which follows the high school contest. To qualify, to develop into a major category. Charlotte Bobcats’ Kemba Walker students must create an Under Hired Helena Kaylin, a former Calvin back to his roots in the Bronx. Create Armour commercial and encourage Klein-er, to join Under Armour as in-store content to reel in shoppers. influential alumni to endorse their senior director of underwear. respective schools. THE TAKEAWAY: Look for the brand in THE TAKEAWAY: Naroo is the kind of “The Dark Knight Rises” and “Battleship.” THE TAKEAWAY: “I’m really looking staffer who recently, while running a half As a summer intern, the Milwaukee to merge my background in technology marathon, spent a good amount of time Bucks’ Brandon Jennings was dubbed with performance-driven products. wondering how Under Armour could the “curator of cool.” “As great Consumers are so plugged create capri pants that would show off as we’re doing, we’re always into athletics, music and SENIOR a woman’s calves like the runner in trying to improve and all kinds of happenings. SENIOR SENIOR VICE VICE CREATIVE front of her. “There will always be build the total volume. PRESIDENT We can connect them PRESIDENT DIRECTOR girls in sports and we can always make That comes from Kevin on OF through technology and OF BRAND NOREEN activewear better.” down — it’s hard to get a CREATIVE apps like measuring their NAROO compliment in this building.” workouts against others.”

& Hungry Cafe, staffers are reminded what’s Building a Winning Culture good for them. Each menu item is marked with a “Go,” “Slow” or “Whoa” emblem de- INSIDERS AT NIKE INC.’S seven-building, cent to $110 million, despite the fallout from pending on the food’s nutritional benefits. 74-acre Beaverton, Ore., campus know all the country’s most powerful earthquake. As And some of the vegetables that go into those about the pro athlete-worthy fitness center, the company strives to make good on Plank’s salads are grown in the employees’ garden, to on-site dry cleaning, employee store and tree- pledge to Wall Street investors to be a $2 bil- try to diminish the carbon imprint. If this all lined workout trails. However more modest lion firm by the end of 2013, the hard-charg- sounds a little canned, it’s not. “I actually have Under Armour Inc.’s Baltimore headquarters ing spirit is unlikely to wane. And there will a horse named Humble & Hungry that had a are, there is no escaping the company’s fast- be plenty of go-team marketing to go with that big win on Friday,” he said referring to one of er-stronger-better corporate culture. — $250 million to be exact. “I like working on his thoroughbreds. “But that’s a mind-set for Fight talk slogans can be found at every my own. I like proving you can do it so there’s us. If you look at corporate cultures and the turn and sports analogies are the preferred definitely a chip. That’s the same chip that we way that work is today — do people work in corporate speak. Sitting beneath an oversize look at our competitors and say, ‘Bring it on.’” the same company for 30 years? I’d love to cre- erasable board covered with can-do sayings, That kind of competitive spirit is in- ate the kind of place that people would want sales meeting mantras and other words to live stilled in employees through a combina- to be here and make that kind of commitment by, founder Kevin Plank said, “They’re about tion of camaraderie and faintly “Kumbaya” to Under Armour — people who are constantly forward movement. They’re about allowing gatherings. Last month a breakfast was held changing and opening their minds up. There is people to list the reasons as to why some- to welcome the company’s 130 new hires a mentality for us to do things differently than thing can’t happen as they are to talk about within the past six months, a figure that even they have been done in other places.” the reasons why they can. It’s not some Tony surprised Plank when he first saw them all During a recent visit, a banner stretched Robbins ‘Power of Positive’ presentation, but together. The following day, the company’s across one wall of the cafeteria plugging an I’ll tell you it’s probably not too far from that, basketball court was covered over to make upcoming game where players The employee-subsidized gym. either. There is an overwhelming sense of, room for a town hall-type meeting. would wear uniforms honoring the Wounded it’s not even belief, as much as it’s sheer will Staffers can take part in al fresco family Warriors Project. While less than 5 percent As for all the sports analogies, Plank that we have a chance to be great. And if I was movie nights, an employee-subsidized gym, of Under Armour goods are made in the U.S., said,“At the risk of being cliché, a lot of them competing against us, I would be really con- 50 percent discount at the employee store, the brand trumpets patriotism by supporting do apply. It’s not an accident. I manage the cerned. We as a company don’t sleep as much. tuition reimbursement and Armour Days the Wounded Warriors Projects’ Believe in company much like a team. Coming out of We work harder. We have a commitment that I — discounted sports outings. There is even Heroes campaign. Through an ongoing part- school and starting the business, sales and think would be exhausting to someone else.” messaging in bathroom stalls where “Potty nership, the company donates 10 percent of marketing were offense, and manufactur- During a recent jaunt to Europe for busi- Talk” highlights such subjects as employee select merchandise to the nonprofit and three ing was defense, and finance and operations ness, Plank hit London, Switzerland and profit sharing and upcoming post-work recre- Division I football teams have worn specially were like special teams. What I’ve come to Madrid all in one day. His drive can be seen ational events. To try to build on the one-for- designed uniforms imprinted with “Honor, find out is that when the company is the best, in Under Armour’s sales: apparel sales are all spirit, there is a club for mothers founded Duty, Commitment, Loyalty, Dedication, it’s not that one team is playing and another up 30 percent, direct-to-consumer sales are by Plank’s sister-in-law whose husband Steve Country and Service” instead of the player team is winning on the side, it’s that every- running around 65 percent ahead and, even also works at the company. names. Those items were later auctioned off, one is on the field together.” in Japan, this year’s sales should gain 30 per- Even in the employee-subsidized Humble with all proceeds benefitting the WWP. — R.F. CELEBRATES SUCCESS

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AHIEVEVEMENT is a registered mark of The PNC Financial Services Group, Inc. © 2011 The PNC Financial Services Group, Inc. All rights reserved. PNC Bank, National Association. Member FDIC CON PDF 1111-054-56610 SR14 WWD THURSDAY, DECEMBER 1, 2011 Men’s Week SPECIAL REPORT

Former NFL player Eric Ogbogu, who is now Under Armour’s The University director of camps, combines, of Maryland’s clinics and pro leagues , in an new uniforms Under Armour commercial. caused a stir.

Cam Derrell Newton “Dash” Natural Selection Poland by ROSEMARY FEITELBERG noise by lining up the soccer club Tottenham Hotspur for a new endorsement deal. Rather LINDSEY VONN AND TOM BRADY may be than chase Barcelona, Real Madrid and other the headliners for Under Armour advertising teams with an army of loyal fans, Under but it was their off-camera actions that won Armour aims to be sought after once those over the brand. teams catch word of how well the product The New England Patriots quarterback “is holds up and how the company is different. as humble a man as you will ever want to meet” Next year, Under Armour expects to double and also the kind of guy who was more than its marketing budget to $250,000. That’s quite a willing to ring up former Auburn University’s step up from 1999 when the company bought its Heisman trophy winner Cam Newton when first ad in ESPN The Magazine to tie into the the brand was wooing him, according to Matt release of Oliver Stone’s “Any Given Sunday,” Mirchin, senior vice president of global market- which featured Jamie Foxx’s character wearing ing. Six-time gold medalist swimmer Michael an Under Armour jock strap. But Plank seems Phelps has not been the poster athlete for post- to be as prudent as ever. “The worst thing some- Olympic behavior, but being a Baltimore native body can say is, ‘I need more money.’ We can helped land him an endorsement deal with do that but we should still be thoughtful and Under Armour. (The building that houses the creative about how we spend our money. Those swimming pool he trains in can be seen from who have the biggest dollars don’t exactly win. Tom Brady of the New England Patriots. chief executive officer Kevin Plank’s office.) “That’s some of the ways we need to be But it’s not as though Phelps or any of the thoughtful about how we compete,” said Plank. other amateur or high school athletes are under “Frankly, the idea of us going dollar-to-dollar in surveillance. Instead of the typical take-the- this business is very, very dangerous and not re- freebies-and-run kind of contracts, jocks of all ality. When you look at sports in general, there abilities are encouraged to offer their two cents are two megaplayers, two mediums and nobody about the brand whether by blogging, clueing in else coming up with the exception of some of friends or posting videos via Facebook. the Chinese brands. We’ve been able to break While the 14 NFL players, four MLB play- through some of that noise to date. Our ability ers and four NBA players generate the most to go forward relies on us being humble enough buzz for Under Armour, there are also deals to not get to the point where we say, ‘Well, we with 23 American colleges, two Canadian showed them. Now look at us — we’re a billion- ones and 27 high school teams. The label also dollar company and blah, blah, blah.’ No one has endorsement deals in other unexpected wants to hear it. We need to be very thoughtful sports like rugby, martial arts, gymnastics and where and how we put our capital but at the hockey. Earlier this year, it made some serious same time it’s an opportunity.”

Olympic skier Lindsey Vonn. Congratulations Kevin and Under Armour on your 15th anniversary.

©2011 IMG, INC.

FEARLESS INNOVATION.™

Congratulations to Under Armour, NineSigma’s trusted advisors, with their deep knowledge and experience, a fearless innovator, on 15 years of success. take the risk out of innovation. www.ninesigma.com Goldman Sachs is pleased to recognize the accomplishments of

Kevin Plank

and

Under Armour.

© 2011 Goldman Sachs. All rights reserved.