Under Armour, Inc.

Good day, and thank you for standing by, and welcome to the Q4 23 earnings conference call. At this time, our participants are on a listen-only mode. After the speaker's presentation, there'll be a question and answer session. To ask a question during the session, you'll need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to turn the call over to Lance Olega, SVP of Investor Relations, Corporate Development. Please go ahead.

Thank you. Good morning and welcome to Under Armour's fourth quarter and full year fiscal 2023 earnings conference call. Today's event is being recorded for replay. Joining us on today's call will be Under Armour Executive Chair and Branch Chief Kevin Plank, President and CEO Stephanie Lenartz, and CFO Dave Bergman. Our remarks today include forward-looking statements that reflect Under Armour's management's current view and certain forecast elements of our business as of May 9, 2023. Statements made are subject to risks and other uncertainties detailed in documents regularly filed with the SEC, including our annual report on Form 10-K and our quarterly reports on Form 10-Q. Today's discussion also includes the use of non-GAAP references. Under Armour believes these measures provide investors with a helpful perspective on underlying business trends. Ventures are reconciled to the most comparable U.S. GAAP measures, a reconciliation of which, along with other pertinent information, can be found in this morning's press release at aboutunderarmer.com. With that, I'll turn the call over to Kevin.

Thank you, Lance, and good morning to everyone joining us on today's call. In Under Armour's 18th year as a public company, I'd like to thank our shareholders for their continued support and belief in the dream we collectively share. Your trust and confidence have empowered us to become one of the world's largest athletic brands. a responsibility that permeates everything we do. However, we also know that it's been, at times, an inconsistent journey, one we acknowledge has not created the shareholder value that we see this brand capable of. Over time, we've seen periods of significant growth and challenges that have tested our grit and resolve along the way. In response to these, we've built a tremendous foundation of talented people, operational and financial agility, and most importantly, brand love. With new leadership in place, continued strategic evolution, and a renewed mindset, I am both proud and confident in the steps we've taken that put us in a position to begin to reach the full potential we all believe is available for this brand. Next to me is Under Armour's new president and CEO, Stephanie Lenartz. With less than three months in the role, she has been hard at work assessing Under Armour's capabilities, leadership talent, and focusing on the strategic priorities necessary to put us on a path toward reigniting growth. Her deep brand and consumer expertise and her fresh perspective on the business have laid the groundwork for challenging some of the ways that we work and re-energize the leadership team across UA as we lay out the growth strategies in our next chapter. As one of the most unique brands in sport, Under Armour has a right to compete at the world's highest professional levels. A legitimate, on-field, authentic, athletic presence with tremendous headroom from which to grow. This, coupled with broadening our aperture to include sports style, marks a significant evolution in our journey and our ability to win the hearts and minds of consumers everywhere. Witnessing the emotional connection between Under Armour and young athletes, the insights we gain and the enthusiasm of our team as we continue to evolve our strategy is infectious. Our history is deep, our confidence is strong, and our commitment is all-encompassing. None of this is possible without innovations like the products we deliver to our global roster of teams and athletes that continue to push the boundaries of what is possible. As one of the most iconic athletes in Under Armour's history, this couldn't be truer than our partnership with Stephen Curry. In late March, we announced that we're deepening our partnership with Stephen by forging a long-term commitment. Together, we are dedicated to pushing performance and prioritizing the impact of sport on communities worldwide. And we see growing the Curry brand as one of our more significant catalysts. Under this new deal, Stefan also becomes a meaningful shareholder, a testament to his long-term commitment to our joint success and belief in an incredibly bright future. This brings us to another highlight of the quarter. As Stefan once said, everyone has to come back to their roots to remind themselves who they are. Well, we did just that with the relaunch to protect this house. a tenant of Under Armour that's ubiquitous for perseverance. Protect This House is not merely a tagline. It's an ethos and the bedrock of our messaging. It's a rallying cry for UA athletes that galvanizes unity and a mindset for switching effortlessly between offense and defense. With activations in the months ahead, we'll continue to add dimensions to this iconic phrase across some of the most important sporting events and social platforms, encouraging the next generation of young athletes to protect this house. From energy comes opportunity. In the product spectrum of good, better, and best, Underma has built a $6 billion brand with a lot of good products, a fair amount of better, and an opportunity with consumers for much greater representation of best level products. A great example of why we believe we can be successful in this strategy of better and best focus is the real-time reaction we have seen with the Under Armour Slip Speed, our versatile training sneaker engineered with our Curry Flow outsole, thorough lacing system, and the defining feature of its convertible heel. Launched in February, this $150 game-changing innovation with a design that is on point and is being authentically adopted by athletes everywhere, quickly becoming one of our most reviewed products and carrying a 94% recommendation rating, available in full-price UA direct-to-consumer and a select number of partners, including Dick's Sporting Goods here in the United States, with the global launch rolling out now in EMEA and APAC. Along with well-orchestrated, authentic storytelling, UA's slip speed is working. This is a prime example and template of what we'll do moving forward, innovative product, inspirational design, and an it factor that only UA can bring. And our product pipeline is full, inclusive of new innovations like Slip Speed, and specifically ensuring that we finish the play on Slip Speed by bringing the technology to additional sneaker categories soon. That makes this a platform and not just a singular shoe. In addition to new innovation, our pipeline also consists of some of our past greatest hits that we will be reintroducing to athletes and have great confidence that that heritage of success combined with a modern 2023 lens, is a great formula for us to pursue. We will ensure this cadence of new becomes a consistent theme of product freshness from UA. The key to continuing to unlock this consistency is pulling the best product minds on the planet together. The good news is that we have great talent at UA who are now empowered to ignite this plan of product attack. but have also been proactive in recently bringing on a few outside experts in both apparel and footwear to help exploit our incredible product opportunity. Moving forward, we'll continue to challenge and energize ourselves in the industry to create even greater excitement in the marketplace. We also know that doing business as usual, doing what we've done in the past just slightly better is not enough. We are committed to the principles that got us here and understand the urgency to become better focused and more aggressive in managing for growth and the trust you're placing in us to get this done. I believe that trust is built in drops and lost in buckets. This phrase has been front and center in our culture for years. It plays a part in consumers' decisions about what to buy, where teammates choose to work, and where shareholders decide to invest. In Newsweek's 2023 survey that ranks the most trustworthy companies in America across those three criteria, Andromo ranks number one as the most trusted company in our sector. Congratulations to the 17,000 strong UA teammates whose character, ethics, and leadership earned this recognition. One drop at a time. Well done. It is now time for us to marry the fundamentals to make UA a great brand and trusted company. with groundbreaking innovation, style, storytelling, and execution for consistent growth and increased shareholder return. And with that, I'll hand the call over to Stephanie.