UA Slipspeed Footwear



June 27, 2023


Dear Shareholders,


As an athlete and sports enthusiast, I have always admired the Under Armour brand and what it stands for – a hard-earned, unique reputation for grit, strength, and innovation. After spending my first several months at the company meeting with athletes, customers, investors, and teammates, my enthusiasm and confidence in this brand have grown exponentially. I believe the potential for Under Armour is even more significant than I initially imagined, and I am excited and energized for what comes next.


Reflecting on fiscal 2023, as we navigated an increasingly uncertain macroeconomic and industry backdrop, Under Armour delivered 3 percent revenue growth, reaching $5.9 billion. And despite a decline in gross margin, driven primarily by a highly promotional environment and supply chain impacts, including higher freight and product costs, we delivered $0.84 of diluted earnings per share. We also ended the year with lower-than-expected inventory growth, $712 million of cash on hand, and, over the past year and a half, have bought $425 million of Under Armour class C stock under the company’s share repurchase program.


This past year also saw strong brand momentum, exemplified by the announcement of our stronger partnership with Stephen Curry – a crucial catalyst for Under Armour as we drive and prioritize the impact of sport on communities worldwide. We are also proud of the re-launch of Protect This House, a ubiquitous ethos of Under Armour that has driven positive and inspiring responses from our athletes and customers. We are also energized by the launch of the UA SlipSpeed heel-up/heel-down footwear platform, including our versatile training sneakers, which bring together design, engineering, storytelling, and an ‘it’ factor wrapped in a solution only Under Armour can create.


As we work into our next chapter, I am confident that we have a strong foundation, the right plans, and a brand capable of delivering sustainable, profitable growth over the long term. In this respect, we must increase our focus, execution, and accountability. It is with that spirit that I have set three priorities based on my assessment of Under Armour’s current strengths and opportunities. This is about three big things over the next three years – appropriately called “Protect This House 3” – which is meant to drive clarity and business alignment across Under Armour:


  1. Drive Global Brand Heat with a Focus on the United States. Under Armour has a globally recognized brand and strong franchises, including compression apparel like ColdGear and HeatGear, trusted by the highest-level athletes in sport. We are one of few brands that can be found on the fields of play worldwide at the highest levels of competition. Yet, we need to pull in our fair share of market growth. Conversion should be more active, especially in the United States, where consumers are aware of and engaged with the Under Armour brand at the highest level. Globally, we’re assessing how our products, athletes, and marketing strategies are – or are not – breaking through to reach our target consumers. With love for a brand that plays considerably larger than the business – I am confident that simplification and doing more with less in our brand activations will be an outstanding unlock to generate excitement and increase conversion towards greater top-line growth.
  2. Deliver Elevated Design and Products with a Focus on Footwear, Women, and Sportstyle. Undoubtedly, we offer industry-leading performance innovations for athletes, yet we can extend our reach even further. Under Armour has a significant growth opportunity to expand our existing offerings and partnerships and to deliver more premium products, particularly in footwear, our women’s business, and Sportstyle. To do so, we have solicited help from sneaker and branding experts who will add industry-proven design horsepower. We also have exceptional women’s products. However, there is an opportunity to deliver more consistently for our female athletes and cut through the competition. Finally, we are focusing energy and resources on our evolving Sportstyle offering, a broadening of our product aperture that embodies the intersection of style, design, and performance.
  3. Grow U.S. Sales While Leveraging Continued Growth in Our International Business. Fiscal 2023 saw strong results in EMEA and Asia-Pacific, and while we have made solid progress in the quality of our business in the United States, there’s still significant potential to drive growth in our home market. In addition to driving brand heat and delivering best-in-class products, Under Armour will focus on driving productivity in our direct retail and digital channels and expanding our ‘better’ and ‘best’ wholesale footprint to create a dramatically improved consumer experience with an emphasis on exceptional service, inspiration, and premium experience. We have a significant opportunity to elevate our brand and showcase it in the best presentation possible in the United States, and we are focused on doing so.


These priorities are a starting point as we work to unlock Under Armour’s potential for improved results – all of which are engineered to drive revenue growth, expand margins, elevate our brand, and deliver exemplary service to whomever we serve, both inside and outside our business – continuously identifying tangible ways to get better.


This also applies to our approach to protecting the planet and our efforts to reduce harmful environmental impacts while respecting the rights and improving the lives of our teammates and suppliers’ workers. Our latest Sustainability & Impact Report outlines 23 goals and targets across three key pillars – Products, Home Field, and Team. From how we create our products to our workplace, interactions with suppliers, and relationships with key stakeholders worldwide, I am inspired every day by the efforts of our team to reach our objectives while being transparent about our progress, goals, and opportunities as a purpose-driven brand.


Under Armour’s purpose in serving athletes is distinct within our culture and aligned with Kevin Plank’s vision. As an incredible thought partner, I look forward to working with Kevin and the entire global team as we continue building into the next chapter for this iconic brand.


I love and believe in Under Armour, and I couldn’t be more excited to lead this fantastic company toward realizing its full potential and the vision we all have for it. As we move forward – now is the time for bold decisions and distinct actions that yield results.


We are operating with our eyes wide open and know the urgency of the work ahead of us. Our renewed strategic focus on world-class execution and increased accountability across all levels of the organization is front and center in our efforts to drive Under Armour toward more robust, profitable growth over the long term. Our athletes, teammates, shareholders, and brand deserve it.


Thank you for your continued support of our brand and our business.




Stephanie Linnartz

President and Chief Executive Officer


Board of Directors