Under Armour Inc (NYSE:UAA) Q1 2019 Earnings Conference Call - Final Transcript

May 02, 2019 • 08:30 am ET


Under Armour Inc (NYSE:UAA) Q1 2019 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen, and welcome to the Under Armour First Quarter 2019 Earnings Webcast and Conference Call. (Operator Instructions) As a reminder, this conference call is being recorded.

I would now like to introduce your host for today's conference, Mr. Lance Allega, Senior Vice President of Investor Relations and Corporate Development. Sir, you may begin.

Lance Allega

Thank you. Good morning to everyone joining us on today's call to discuss Under Armour's first quarter 2019 results.

Participants on the call will make forward-looking statements. These statements are based on current expectations and are subject to certain uncertainties that could cause actual results to differ materially. These uncertainties are detailed in this morning's press release and documents filed regularly with the SEC, all of which can be found on our website at about.underarmour.com.

During our call, we may reference certain non-GAAP financial information, including adjusted and currency neutral terms, which are defined in this morning's release. We use non-GAAP amounts as the lead in some of our discussions because we feel they more accurately represent the true operational performance and underlying results of our business.

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

Joining us on today's call will be Under Armour Chairman and CEO, Kevin Plank; President and COO, Patrik Frisk; and Chief Financial Officer, Dave Bergman. Following our prepared remarks, we'll open up the call for questions.

And with that, I'll turn it over to Kevin.

Kevin Plank

Thanks, Lance, and good morning, everyone. With the first quarter in the books, we're off to a solid start to the year for Under Armour's business and brand.

As laid out in our last call, we are focused on 4 objectives as we work to deliver 2019: first, the brand, amplifying our story and delivering innovative products and experiences that make our athletes better; second, continuing to optimize our operations and investments to prioritize our premium athletic performance brand positioning; third, building stronger relationships with our customers; and fourth, delivering on our financial plan to drive sustainable, profitable growth over the long term.

With the first quarter as a backdrop, let's quickly touch on some of the progress we're making. Starting with Under Armour brand performance. We're seeing strong momentum among athletes, products and experiences. Perhaps the biggest athlete highlight was the NCAA basketball tournament, where we had teams competing in both national championship finals with Notre Dame on the women's side and Texas Tech on the men's side. When considering that only 5 years ago, we had just a handful of teams in the entire tournament, to having 29 this year, we're excited to see our product innovation win on the court, and our overall presence in basketball continue to drive brand heat and consideration.

In product, our big innovation