Under Armour

Footwear and Apparel

Camilo Lyon | Canaccord Genuity Inc. (US) | CLyon@canaccordgenuity.com | 212.849.3978

Pallav Saini | Canaccord Genuity Inc. (US) | psaini@canaccordgenuity.com | 212.389.8054

US Equity Research
5 February 2015

Raising Target Price

BUY
unchanged

Impressive Q4 sales beat; bold acquisitions create

formidable user base; reiterate BUY, new $97 PT

PRICE TARGET US$97.00

from US$93.00
Price (5-Feb)
US$73.57
Ticker
UA-NYSE

52-Week Range (US$):

Shares Out. (M) :
Market Cap (US$M):
FYE Dec
Sales (US$M)
Previous
P/Sales (x)

2014A

2015E

2016E

3,084
3,043
5.2

3,818
3,756
4.2

4,735
3.4

0.95
0.94
77.1

1.09
1.20
67.7

1.53
48.2

EPS (US$)
Previous
P/E (x)
Quarterly Sales
2014A
2015E
2016E
Quarterly EPS
2014A
2015E
2016E

45.05 - 73.95
218.0
16,037

Q1
641.6
803.0
1,016

Q2
609.7
756.9
950.8

Q3
937.9
1,168
1,438

Q4
895.2
1,090
1,330

Q1
0.06
0.04
0.13

Q2
0.08
0.08
0.18

Q3
0.41
0.49
0.64

Q4
0.40
0.46
0.59

80
75
70
65
60
55
50
45

Jan-15

Feb-15

Dec-14

Oct-14

Nov-14

Sep-14

Jul-14

Aug-14

Jun-14

Apr-14

May-14

Mar-14

40

UA
S&P500(rebased)
Source:FactSet

Under Armour is a leading manufacturer of athletic apparel,

footwear, and accessories, selling its products through
wholesalers, factory outlet stores, and online.

Investment recommendation
UA reported strong 4Q EPS of 40c vs. our consensus estimate of 39c. Relative to
our model, the beat was driven by impressive sales growth (+2c) and resulting SG&A
leverage (+1c), partially offset by lower gross margin (-2c). Revenue growth of 31% vs.
our 25% estimate was superb as it proves UA can sustain the accelerated momentum
it began in 4Q13 despite a tough 35% growth comparison. As we previewed, all parts
of the business performed well in Q4 as footwear (+55% vs. our 30% est.), apparel
(+30% vs. our 25% est.) and accessories (+22% vs.our 14% est.) contributed to the
excellent results. Gross margin of 49.9% was 85bps below our estimate due to higher
mix of international (-90bps), FX (-20bps), and higher air freight (20bps). All in, this was
a solid quarter that serves as evidence of UA's ability to execute and take share even in a
challenging and volatile environment.
Separately, UA announced the acquisition of two companies that add category breadth
(nutrition) and geographic reach (Europe) to its Connected Fitness ecosystem. With
the acquisition of MyFitnessPal ($475M) and Endomondo ($85M), UA has amassed
the world's largest Connected Fitness user platform with over 120M members. The
opportunity to speak to, engage, advise, and track data for 120M people who actively
participate in a form of athletic activity cannot be understated. This is a bold and
aggressive direction UA is taking to address the ever-changing consumption habits of
today's consumers by interacting with them throughout all parts of their day. Endomondo
gives UA access to 20M members mainly in Europe, thus providing a pathway to connect
with consumers who are new to the brand in an integrated, multi-purpose way. Rounding
out the technology offering, MyFitnessPal serves as a health and nutrition resource for
more than 80M members. We view these acquisitions as long-term growth drivers that
should generate an increasingly connected global brand affiliation by integrating with
consumers in all aspects of their lives. We reiterate our BUY rating.
Investment highlights
Revenue guidance for 2015 was maintained at 22% growth, which given product
extensions in footwear and apparel coupled with rising ASPs, appears to be highly
conservative. EBIT growth is expected to be 12%-15%, down from 22%, mainly due to
one-time acquisition costs (which we estimate are ~9c-10c dilutive). Ex these costs,
we estimate EBIT growth would be in the 22% range. Revenue from Connected Fitness
should offset non-acquisition pressures such as FX (-1% to sales). GM is expected to
be modestly higher as supply chain benefits begin to flow through.
Estimate changes: We lowered our 2015 EPS estimate to $1.09 from $1.20
primarily due acquisition expenses and increased interest expense. For 2016, we are
introducing our $1.53 estimate on 24% sales growth.
Valuation
Our $97 target, up from $93 as we roll forward to our 2016 estimates, is a blend of 50x
our 2016E EPS, 25x EBITDA, and DCF.

Canaccord Genuity is the global capital markets group of Canaccord Genuity Group Inc. (CF : TSX | CF. : LSE)
The recommendations and opinions expressed in this research report accurately reflect the research analyst's personal, independent and objective views about any and all
the companies and securities that are the subject of this report discussed herein.

For important information, please see the Important Disclosures beginning on page 4 of this document.

Under Armour
Raising Target Price

Figure 1: UA 4Q variance chart

Estim ate Actual

Incom e Statem ent

4Q13A

4Q14

4Q14

Delta

EPS Im pact

Revenue
Apparel

545.5

681.9

707.7

25.8

Footw ear

55.4

72.0

85.8

13.8

Accessories

64.6

73.7

79.0

5.3

665.5

827.5

872.5

45.0

17.3

25.9

22.7

(3.2)

$682.8

$853.4

$895.2

$41.8

COGS

332.4

420.7

448.9

28.2

Gross Profit

350.4

432.7

446.3

13.6

SG&A

251.9

289.7

300.0

10.3

98.5

143.0

146.3

3.3

Total Net Sales

Licensing revenues
Total Net Revenue

Operating Incom e
Other Income, net

(1.3)

Pretax Income

97.2

Taxes
Net Income
EPS, diluted
Shares outstanding, diluted

(2.0)

(4.2)

(2.2)

$0.02

($0.01)

141.0

142.1

1.1

33.0

56.4

54.4

(2.0)

64.2

84.6

87.7

3.1

$0.30

$0.39

$0.40

0.0

$0.01

0.0

($0.00)

214.6

218.5

219.7

Margin Analysis
Gross Margin Total
y/y change (bps)
SG&A
leverage/(deleverage)

51.3%
1.06%

50.7%

49.9%

(0.85%)

($0.02)

(0.43%)

$0.01

(0.61%) (1.46%)

36.9%

33.9%

33.5%

(2.76%)

2.95%

3.38%

EBIT Margin

14.42%

16.8%

16.3%

(0.42%)

($0.01)

Taxes

33.96%

40.0%

38.3%

(1.70%)

$0.01

9.40%

9.9%

9.8%

(0.12%)

Net Income

Source: Company reports, Canaccord Genuity Research

Buy unchanged Target Price US$97.00 from US$93.00 | 5 February 2015

Footwear and Apparel 2

Under Armour
Raising Target Price

Figure 2: UA projected income statement

December Fiscal
Incom e Statem ent
Revenue
Apparel
Footw ear
Accessories
Total Net Sales
Licensing revenues
Total Net Revenue

1Q14

2Q14

3Q14

4Q14

1Q15E

2Q15E

3Q15E

4Q15E

1Q16E

2Q16E

3Q16E

4Q16E

2010

2011

2012

2013

2014

2015E

2016E

459.2
114.0
51.6
624.8
16.8
641.6

420.0
109.5
59.9
589.5
20.2
609.7

704.6
121.6
84.9
911.1
26.8
937.9

707.7
85.8
79.0
872.5
22.7
895.2

560.3
159.7
62.9
782.8
20.1
803.0

512.4
142.4
77.9
732.7
24.2
756.9

873.7
164.2
97.7
1,135.5
32.2
1,167.7

856.3
115.8
90.8
1,063.0
27.3
1,090.2

694.8
215.5
81.8
992.1
24.1
1,016.2

635.4
185.1
101.3
921.8
29.0
950.8

1,065.9
221.6
112.3
1,399.8
38.6
1,438.4

1,036.1
156.4
104.5
1,297.0
32.7
1,329.7

853.5
127.2
43.9
1,024.6
39.4
1,063.9

1,122.0
181.7
132.4
1,436.1
36.6
1,472.7

1,385.4
239.0
165.8
1,790.1
44.8
1,834.9

1,762.2
298.8
216.1
2,277.1
55.0
2,332.1

2,291.5
431.0
275.4
2,997.9
86.4
3,084.4

2,802.7
582.1
329.3
3,714.1
103.7
3,817.8

3,432.1
778.7
399.9
4,610.7
124.5
4,735.1

COGS
Gross Profit
SG&A
Operating Incom e

340.9
300.7
273.8
26.9

309.7
300.0
265.3
34.7

472.6
465.3
319.2
146.1

448.9
446.3
300.0
146.3

424.8
378.2
358.7
19.5

383.0
373.9
339.5
34.4

586.2
581.5
399.0
182.5

542.9
547.3
375.0
172.3

528.4
487.8
439.4
48.3

477.3
473.5
407.4
66.1

719.2
719.2
486.8
232.4

658.2
671.5
457.4
214.0

533.4
530.5
418.2
112.4

759.8
712.8
550.1
162.8

955.6
879.3
670.6
208.7

1,195.4
1,136.7
871.6
265.1

1,572.2
1,512.2
1,158.3
354.0

1,936.9
1,880.9
1,472.2
408.7

2,383.1
2,352.0
1,791.1
560.9

Other Income, net

Pretax Income
Taxes
Net Income
EPS, diluted
Factsetl Consensus

(1.7)
25.1
11.6
$13.5
$0.06
$0.04

(1.0)
33.7
16.0
$17.7
$0.08
$0.07

(4.9)
141.2
52.1
$89.1
$0.41
$0.40

(4.2)
142.1
54.4
$87.7
$0.40
$0.39

(4.0)
15.5
6.0
$9.4
$0.04
$0.09

(4.0)
30.4
11.9
$18.5
$0.08
$0.12

(4.0)
178.5
69.6
$108.9
$0.49
$0.50

(4.0)
168.3
65.7
$102.7
$0.46
$0.49

(3.0)
45.3
17.5
$27.9
$0.13
$0.15

(3.0)
63.1
24.3
$38.8
$0.18
$0.18

(3.0)
229.4
88.3
$141.1
$0.64
$0.58

(3.0)
211.0
81.3
$129.8
$0.59
$0.56

(3.4)
108.9
40.4
$68.5
$0.33
$0.31

(5.9)
156.9
59.9
$96.9
$0.46
$0.46

(5.3)
203.4
74.7
$128.8
$0.61
$0.60

(4.1)
261.0
98.7
$162.3
$0.76
$0.72

(11.7)
342.2
134.2
208.0
$0.95
$0.94

(16.0)
392.7
153.2
239.6
$1.09
$1.21

(12.0)
548.9
211.3
337.6
$1.53
$1.52

216.9

217.3

218.0

219.7

220.0

220.3

220.6

220.9

220.9

220.9

220.9

220.9

205.1

210.1

212.6

214.3

218.0

220.5

220.9

46.9%
0.95%
42.7%
0.38%
4.2%
(0.3%)
46.1%
2.1%

49.2%
0.88%
43.5%
(2.30%)
5.7%
(0.2%)
47.5%
2.9%

49.6%
1.19%
34.0%
(2.32%)
15.6%
(0.5%)
36.9%
9.5%

49.9%
(1.46%)
33.5%
3.38%
16.3%
(0.5%)
38.3%
9.8%

47.1%
0.23%
44.7%
(2.00%)
2.4%
(0.5%)
39.0%
1.2%

49.4%
0.20%
44.9%
(1.35%)
4.5%
(0.5%)
39.0%
2.4%

49.8%
0.19%
34.2%
(0.14%)
15.6%
(0.3%)
39.0%
9.3%

50.2%
0.35%
34.4%
(0.88%)
15.8%
(0.4%)
39.0%
9.4%

48.0%
0.90%
43.2%
1.43%
4.8%
(0.3%)
38.5%
2.7%

49.8%
0.40%
42.8%
2.01%
7.0%
(0.3%)
38.5%
4.1%

50.0%
0.20%
33.8%
0.33%
16.2%
(0.2%)
38.5%
9.8%

50.5%
0.30%
34.4%
(0.01%)
16.1%
(0.2%)
38.5%
9.8%

49.9%
1.97%
39.3%
(1.37%)
10.6%
(0.3%)
37.1%
6.4%

48.4%
(1.46%)
37.4%
1.95%
11.1%
(0.4%)
38.2%
6.6%

47.9%
(0.48%)
36.5%
0.80%
11.4%
(0.3%)
36.7%
7.0%

48.7%
0.82%
37.4%
(0.83%)
11.4%
(0.2%)
37.8%
7.0%

49.0%
0.29%
37.6%
(0.18%)
11.5%
(0.4%)
39.2%
6.7%

49.3%
0.24%
38.6%
(1.01%)
10.7%
(0.4%)
39.0%
6.3%

49.7%
0.40%
37.8%
0.74%
11.8%
(0.3%)
38.5%
7.1%

32.9%
41.2%
42.9%
35.1%
81.8%
36.0%
38.9%
36.9%
34.9%
99.1%
73.3%
70.9%

35.4%
34.2%
17.5%
33.1%
73.1%
34.1%
36.6%
34.5%
41.6%
7.4%
0.7%
(0.7%)

25.6%
50.1%
32.0%
29.0%
59.1%
29.7%
32.9%
31.6%
39.2%
20.9%
22.4%
20.4%

29.7%
55.0%
22.2%
31.1%
31.6%
31.1%
27.4%
27.2%
19.1%
48.6%
36.7%
33.5%

22.0%
40.0%
22.0%
25.3%
20.0%
25.1%
25.8%
26.1%
31.0%
(27.5%)
(30.3%)
(31.3%)

22.0%
30.0%
30.0%
24.3%
20.0%
24.2%
24.7%
25.0%
28.0%
(0.9%)
4.8%
3.4%

24.0%
35.0%
15.0%
24.6%
20.0%
24.5%
25.0%
25.3%
25.0%
24.9%
22.2%
20.7%

21.0%
35.0%
15.0%
21.8%
20.0%
21.8%
22.6%
22.8%
25.0%
17.8%
17.1%
16.4%

24.0%
35.0%
30.0%
26.7%
20.0%
26.6%
29.0%
29.5%
22.5%
148.3%
195.5%
194.3%

24.0%
30.0%
30.0%
25.8%
20.0%
25.6%
26.6%
27.1%
20.0%
92.1%
109.3%
108.7%

22.0%
35.0%
15.0%
23.3%
20.0%
23.2%
23.7%
23.9%
22.0%
27.4%
29.6%
29.4%

21.0%
35.0%
15.0%
22.0%
20.0%
22.0%
22.7%
22.8%
22.0%
24.2%
26.4%
26.4%

30.9%
(6.6%)
25.1%
24.5%
18.1%
24.2%
29.4%
30.3%
28.7%
31.8%
46.3%
44.5%

31.5%
42.9%
201.7%
40.2%
(7.1%)
38.4%
34.4%
37.7%
31.5%
44.9%
41.5%
38.2%

23.5%
31.5%
25.3%
24.7%
22.5%
24.6%
23.4%
23.4%
21.9%
28.2%
32.9%
31.3%

27.2%
25.1%
30.3%
27.2%
22.8%
27.1%
29.3%
29.6%
30.0%
27.0%
26.1%
25.1%

30.0%
44.2%
27.5%
31.7%
57.2%
32.3%
33.0%
31.8%
32.9%
33.5%
28.2%
26.0%

22.3%
35.1%
19.6%
23.9%
20.0%
23.8%
24.4%
24.6%
27.1%
15.5%
15.1%
13.8%

22.5%
33.8%
21.4%
24.1%
20.0%
24.0%
25.0%
25.3%
21.7%
37.2%
40.9%
40.6%

Shares outstanding, diluted

Margin Analysis
Gross Margin Total
y/y change (bps)
SG&A
leverage/(deleverage)
EBIT Margin
Other income
Taxes
Net Income
Grow th Analysis
Revenue
Apparel
Footw ear
Accessories
Total Net Sales
Licensing revenues
Total Net Revenue
Gross Profit Dollars
Gross Profit Dollars ex-licensing revs
SG&A
EBIT
Net Income
EPS

Source: Company reports, Canaccord Genuity Research

Buy unchanged Target Price US$97.00 from US$93.00 | 5 February 2015

Footwear and Apparel 3

Under Armour
Raising Target Price

Appendix: Important Disclosures

Analyst Certification
Each authoring analyst of Canaccord Genuity whose name appears on the front page of this research hereby certifies that (i) the
recommendations and opinions expressed in this research accurately reflect the authoring analysts personal, independent and
objective views about any and all of the designated investments or relevant issuers discussed herein that are within such authoring
analysts coverage universe and (ii) no part of the authoring analysts compensation was, is, or will be, directly or indirectly, related to the
specific recommendations or views expressed by the authoring analyst in the research.
Analysts employed outside the US are not registered as research analysts with FINRA. These analysts may not be associated persons of
Canaccord Genuity Inc. and therefore may not be subject to the NASD Rule 2711 and NYSE Rule 472 restrictions on communications
with a subject company, public appearances and trading securities held by a research analyst account.
Compendium Report
If this report covers six or more subject companies, it is a compendium report and Canaccord Genuity and its affiliated companies
hereby direct the reader to the specific disclosures related to the subject companies discussed in this report, which may be obtained at
the following website (provided as a hyperlink if this report is being read electronically) http://disclosures.canaccordgenuity.com/EN/
Pages/default.aspx; or by sending a request to Canaccord Genuity Corp. Research, Attn: Disclosures, P.O. Box 10337 Pacific Centre,
2200-609 Granville Street, Vancouver, BC, Canada V7Y 1H2; or by sending a request by email to disclosures@canaccordgenuity.com.
The reader may also obtain a copy of Canaccord Genuitys policies and procedures regarding the dissemination of research by following
the steps outlined above.
Target Price / Valuation Methodology:
Under Armour - UA
Our $97 target is a blend of 50x our 2016E EPS, 25x EV/EBITDA, and DCF.
Risks to achieving Target Price / Valuation:
Under Armour - UA
1.) We believe the primary risk to our thesis is a deceleration in sales. UA's premium multiple is predicated on the continuation of robust
sales growth and thus any perceived or actual slowdown in top-line trends would likely result in multiple compression. 2.) Another risk
includes continued supply chain issues that lead to gross margin contraction and/or order cancellations. While UA is acting to improve
its order fill rate with its customers, we do not expect a meaningful change to its supply constraints until H2/12. Should demand for its
product continue to outstrip supply, margins could suffer as the company is forced to compensate its customers for late deliveries. 3.)
Lastly, we consider footwear to be a risk as questions regarding UA's ability to succeed in this category remain unanswered. A lack of
improvement in future footwear launches, particularly running, could result in brand deterioration and stall growth in the category.
Distribution of Ratings:
Global Stock Ratings (as of 02/05/15)
Rating

Coverage Universe

IB Clients
%
32.94%
14.33%
2.27%
57.69%

#
%
592
58.27%
328
32.28%
44
4.33%
52
5.12%
1016*
100.0%
*Total includes stocks that are Under Review
Canaccord Genuity Ratings System
BUY: The stock is expected to generate risk-adjusted returns of over 10% during the next 12 months.

Buy
Hold
Sell
Speculative Buy

HOLD: The stock is expected to generate risk-adjusted returns of 0-10% during the next 12 months.
SELL: The stock is expected to generate negative risk-adjusted returns during the next 12 months.
NOT RATED: Canaccord Genuity does not provide research coverage of the relevant issuer.
Risk-adjusted return refers to the expected return in relation to the amount of risk associated with the designated investment or the
relevant issuer.
Risk Qualier

Buy unchanged Target Price US$97.00 from US$93.00 | 5 February 2015

Footwear and Apparel 4

Under Armour
Raising Target Price

SPECULATIVE: Stocks bear significantly higher risk that typically cannot be valued by normal fundamental criteria. Investments in the
stock may result in material loss.
Canaccord Genuity Company-Specific Disclosures (as of date of this publication)
Canaccord Genuity or one or more of its affiliated companies is a market maker or liquidity provider in the securities of Under Armour or
in any related derivatives.
Canaccord Genuity or one or more of its affiliated companies intend to seek or expect to receive compensation for Corporate Finance/
Investment Banking services from Under Armour in the next six months.
An analyst has visited the material operations of Under Armour. No payment was received for the related travel costs.
Under Armour Rating History as of 02/04/2015
B:$26.50
04/15/12

B:$27.50
04/22/12

B:NA
07/24/12

B:$29.00
07/25/12

B:$35.00
10/25/12

B:$34.00
01/31/13

B:$35.00
07/15/13

B:$38.00
07/25/13

B:$46.00
10/18/13

B:$60.00
01/31/14

Apr 2012

Jul 2012

Oct 2012

Jan 2013

Apr 2013

Jul 2013

Oct 2013

Jan 2014

Apr 2014

B:$80.00
07/24/14

B:$93.00
12/03/14

100
80
60
40
20
0

Closing Price

Jul 2014

Oct 2014

Jan 2015

Target Price

Buy (B); Speculative Buy (SB); Sell (S); Hold (H); Suspended (SU); Under Review (UR); Restricted (RE); Not Rated (NR)

General Disclosures
Canaccord Genuity is the business name used by certain wholly owned subsidiaries of Canaccord Genuity Group Inc., including
Canaccord Genuity Inc., Canaccord Genuity Limited, Canaccord Genuity Corp., and Canaccord Genuity (Australia) Limited, an affiliated
company that is 50%-owned by Canaccord Genuity Group Inc.
The authoring analysts who are responsible for the preparation of this research are employed by Canaccord Genuity Corp. a Canadian
broker-dealer with principal offices located in Vancouver, Calgary, Toronto, Montreal, or Canaccord Genuity Inc., a US broker-dealer
with principal offices located in New York, Boston, San Francisco and Houston, or Canaccord Genuity Limited., a UK broker-dealer with
principal offices located in London (UK) and Dublin (Ireland), or Canaccord Genuity (Australia) Limited, an Australian broker-dealer with
principal offices located in Sydney and Melbourne.
The authoring analysts who are responsible for the preparation of this research have received (or will receive) compensation based upon
(among other factors) the Corporate Finance/Investment Banking revenues and general profits of Canaccord Genuity. However, such
authoring analysts have not received, and will not receive, compensation that is directly based upon or linked to one or more specific
Corporate Finance/Investment Banking activities, or to recommendations contained in the research.
Canaccord Genuity and its affiliated companies may have a Corporate Finance/Investment Banking or other relationship with the issuer
that is the subject of this research and may trade in any of the designated investments mentioned herein either for their own account
or the accounts of their customers, in good faith or in the normal course of market making. Accordingly, Canaccord Genuity or their
affiliated companies, principals or employees (other than the authoring analyst(s) who prepared this research) may at any time have
a long or short position in any such designated investments, related designated investments or in options, futures or other derivative
instruments based thereon.
Some regulators require that a firm must establish, implement and make available a policy for managing conflicts of interest arising as
a result of publication or distribution of research. This research has been prepared in accordance with Canaccord Genuitys policy on
managing conflicts of interest, and information barriers or firewalls have been used where appropriate. Canaccord Genuitys policy is
available upon request.
The information contained in this research has been compiled by Canaccord Genuity from sources believed to be reliable, but (with the
exception of the information about Canaccord Genuity) no representation or warranty, express or implied, is made by Canaccord Genuity,
its affiliated companies or any other person as to its fairness, accuracy, completeness or correctness. Canaccord Genuity has not
independently verified the facts, assumptions, and estimates contained herein. All estimates, opinions and other information contained
in this research constitute Canaccord Genuitys judgement as of the date of this research, are subject to change without notice and are
provided in good faith but without legal responsibility or liability.
Buy unchanged Target Price US$97.00 from US$93.00 | 5 February 2015

Footwear and Apparel 5

Under Armour
Raising Target Price

Canaccord Genuitys salespeople, traders, and other professionals may provide oral or written market commentary or trading strategies
to our clients and our proprietary trading desk that reflect opinions that are contrary to the opinions expressed in this research.
Canaccord Genuitys affiliates, principal trading desk, and investing businesses may make investment decisions that are inconsistent
with the recommendations or views expressed in this research.
This research is provided for information purposes only and does not constitute an offer or solicitation to buy or sell any designated
investments discussed herein in any jurisdiction where such offer or solicitation would be prohibited. As a result, the designated
investments discussed in this research may not be eligible for sale in some jurisdictions. This research is not, and under no
circumstances should be construed as, a solicitation to act as a securities broker or dealer in any jurisdiction by any person or company
that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction. This material is prepared for
general circulation to clients and does not have regard to the investment objectives, financial situation or particular needs of any
particular person. Investors should obtain advice based on their own individual circumstances before making an investment decision.
To the fullest extent permitted by law, none of Canaccord Genuity, its affiliated companies or any other person accepts any liability
whatsoever for any direct or consequential loss arising from or relating to any use of the information contained in this research.
For Canadian Residents:
This research has been approved by Canaccord Genuity Corp., which accepts sole responsibility for this research and its dissemination
in Canada. Canadian clients wishing to effect transactions in any designated investment discussed should do so through a qualified
salesperson of Canaccord Genuity Corp. in their particular province or territory.
For United States Residents:
Canaccord Genuity Inc., a US registered broker-dealer, accepts responsibility for this research and its dissemination in the United States.
This research is intended for distribution in the United States only to certain US institutional investors. US clients wishing to effect
transactions in any designated investment discussed should do so through a qualified salesperson of Canaccord Genuity Inc. Analysts
employed outside the US, as specifically indicated elsewhere in this report, are not registered as research analysts with FINRA. These
analysts may not be associated persons of Canaccord Genuity Inc. and therefore may not be subject to the NASD Rule 2711 and NYSE
Rule 472 restrictions on communications with a subject company, public appearances and trading securities held by a research analyst
account.
For United Kingdom and European Residents:
This research is distributed in the United Kingdom and elsewhere Europe, as third party research by Canaccord Genuity Limited,
which is authorized and regulated by the Financial Conduct Authority. This research is for distribution only to persons who are Eligible
Counterparties or Professional Clients only and is exempt from the general restrictions in section 21 of the Financial Services and
Markets Act 2000 on the communication of invitations or inducements to engage in investment activity on the grounds that it is being
distributed in the United Kingdom only to persons of a kind described in Article 19(5) (Investment Professionals) and 49(2) (High Net
Worth companies, unincorporated associations etc) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005
(as amended). It is not intended to be distributed or passed on, directly or indirectly, to any other class of persons. This material is not for
distribution in the United Kingdom or elsewhere in Europe to retail clients, as defined under the rules of the Financial Conduct Authority.
For Jersey, Guernsey and Isle of Man Residents:
This research is sent to you by Canaccord Genuity Wealth (International) Limited (CGWI) for information purposes and is not to be
construed as a solicitation or an offer to purchase or sell investments or related financial instruments. This research has been produced
by an affiliate of CGWI for circulation to its institutional clients and also CGWI. Its contents have been approved by CGWI and we are
providing it to you on the basis that we believe it to be of interest to you. This statement should be read in conjunction with your client
agreement, CGWI's current terms of business and the other disclosures and disclaimers contained within this research. If you are in any
doubt, you should consult your financial adviser.
CGWI is licensed and regulated by the Guernsey Financial Services Commission, the Jersey Financial Services Commission and the Isle
of Man Financial Supervision Commission. CGWI is registered in Guernsey and is a wholly owned subsidiary of Canaccord Genuity Group
Inc.
For Australian Residents:
This research is distributed in Australia by Canaccord Genuity (Australia) Limited ABN 19 075 071 466 holder of AFS Licence No
234666. To the extent that this research contains any advice, this is limited to general advice only. Recipients should take into account
their own personal circumstances before making an investment decision. Clients wishing to effect any transactions in any financial
products discussed in the research should do so through a qualified representative of Canaccord Genuity (Australia) Limited. Canaccord
Genuity Wealth Management is a division of Canaccord Genuity (Australia) Limited.
For Singapore Residents:
This research is distributed pursuant to 32C of the Financial Advisers under an arrangement between each of the Canaccord Genuity
entities that publish research and Canaccord Genuity Singapore Pte. Ltd who are an exempt financial adviser under section 23(1)(d) of
the Financial Advisers Act. This research is only intended for persons who fall within the definition of accredited investor, expert investor
or institutional investor as defined under section 4A of the Securities and Futures Act It is not intended to be distributed or passed on,
directly or indirectly, to any other class of persons. Recipients of this report can contact Canaccord Genuity Singapore Pte. Ltd. (Contact
Buy unchanged Target Price US$97.00 from US$93.00 | 5 February 2015

Footwear and Apparel 6

Under Armour
Raising Target Price

Person: Tom Gunnersens tel # is +852 3919 2561) in respect of any matters arising from, or in connection with, the [analyses or
report].
For Hong Kong Residents:
This research is distributed in Hong Kong by Canaccord Genuity (Hong Kong) Limited who is licensed by the Securities and Futures
Commission. This research is only intended for persons who fall within the definition of professional investor as defined in the Securities
and Futures Ordinance. It is not intended to be distributed or passed on, directly or indirectly, to any other class of persons. Recipients of
this report can contact Canaccord Genuity (Hong Kong). Ltd. (Contact Person: Tom Gunnersens tel # is +852 3919 2561) in respect of
any matters arising from, or in connection with, the research.
Additional information is available on request.
Copyright Canaccord Genuity Corp. 2015 . Member IIROC/Canadian Investor Protection Fund
Copyright Canaccord Genuity Limited 2015 . Member LSE, authorized and regulated by the Financial Conduct Authority.
Copyright Canaccord Genuity Inc. 2015 . Member FINRA/SIPC
Copyright Canaccord Genuity (Australia) Limited 2015 . Participant of ASX Group, Chi-x Australia and of the NSX. Authorized and
regulated by ASIC.
All rights reserved. All material presented in this document, unless specifically indicated otherwise, is under copyright to Canaccord
Genuity Corp., Canaccord Genuity Limited, Canaccord Genuity Inc or Canaccord Genuity Group Inc. None of the material, nor its content,
nor any copy of it, may be altered in any way, or transmitted to or distributed to any other party, without the prior express written
permission of the entities listed above.

Buy unchanged Target Price US$97.00 from US$93.00 | 5 February 2015

Footwear and Apparel 7