From the provided financial data, what is Under Armour's financial condition? What do the financial statements suggest about the company's future? If present trends continue, where do you see Under Armbur in the next few years? pruus in the United States. EXHIBIT 1 Growth in Under Armour's Quarterly Revenues, 2010-2017 (in millions) Quarter 1 (Jan-March) Quarter 2 (April-June) Quarter 3 (July-Sept.) Quarter 4 (Oct-Dec.) Percent Change from Prior Year's Quarter 1 Percent Change from Prior Year's Quarter 2 Percent Change from Prior Year's Quarter 3 Percent Change from Prior Year's Quarter 4 Revenues Revenues Revenues Revenues 24.4% 14.7% 36.3% 23.0% 42.3% 2010 2011 2012 2013 2014 2015 2016 2017 $ 229.4 312.7 384.4 471.6 641,6 804.9 1.047.8 1,117.3 22.7% 26.8% 23.0% 34.1% $ 328.6 465.5 575.2 . 723.1 937.9 1,204.1 1,471.6 1,405.6 36.0% 25.5% 30.2% (2.97% 21.9% 41.7% 23.6% 25.7% 29.7% 28.4% 22.4% (4.5% $ 301.2 403.1 505.9 682.8 895.2 1,170.7 1,305.3 1,365.4 35.5% 33.9% 25.5% 35.0% 31.1% 30.8% 11.5% 4.6% w 8 28.5% 27.7% 8.7%, 1,088.2 Source: Company 10-K reports, 2017, 2016, 2015, 2013, 2012, and 2010 LAMIBIT 2 Selected Financial Data for Under Armour, Inc., 2014-2017 (in millions) Selected Income Statement Data 2017 2016 2015 2014 $4,825.3 2,584.7 2.240.6 1823.1 $3,963.3 2,057.8 1,905.5 1,497.0 $3,084.4 1.152.2 1,512.2 1,158.3 Net revenues Cost of goods sold Gross profit Selling general and administrative expenses Restructuring and impairment charges Income from operations Interest expense, net Other expense, net Income (loss) before income Provision for income taxes Net income (loss) $4.976.6 2.737.8 2.238.7 2,086.8 124.0 27.8 (34.5) (3.6) (10.3) 38.0 $ (48.3) 417.5 (26.4) (2.8) 388.3 131.3 $ 257.0 408.5 (14.6) (7.2) 386.7 154.1 $ 232.6 354.0 (5.3) (6.4) 3422 134.2 208.0 $ Selected Balance Sheet Data $ 312.5 1,277.3 1.158.5 Cash and cash equivalents Working capital Inventories at year-end Total assets Long-term debt, including current maturities Total stockholders' equity $ 250.5 1,279.3 917.5 3,644.3 817.4 2,030.9 $ 129.9 1,020.0 783.0 2,866.0 666.1 1668.2 $ 593.2 1,127.8 536.7 2,092.4 281.5 1,350.3 4,006.4 792.0 2,018.6 " Selected Cash Flow Data Net cash provided by operating activities $234.1 $ 364.4 ($ 14.5) $ 219.0 C. Operating Income (loss) by geographic region in millions of $) 2017 2016 2015 2014 $20.2 $408.4 $461.0 $3723 North America EMEA Asia-Pacific Latin America Connected fitness Total operating income 18.0 82.0 (37.1) (55.3) $ 27.8 11.4 68.3 (33.9). (368) $417.5 3.1 36.4 (30.6) 161.3 $408.5 (11.8) 21.9 (15.4) (13.1) $354.0 I EXHIBIT 6 Nike's Sales of Nike Brand Footwear, Apparel, and Equipment, by Geographic Region and by Wholesale and Direct-to-Customer, Fiscal Years 2015-2017 Fiscal Years Ending May 31 - Sales Revenues and Earnings (in millions) 2016 2017 2015 $9.299 4,746 $ 8,506 4,410 719 824 North America. Revenues-Nike Brand footwear Nike Brand apparel Nike Brand equipment Total Nike Brand revenues Sales to Wholesale Customers Sales Direct to Consumer Earnings before interest and taxes Profit margin $ 9,684 4,866 646 $15,216 10.756 4,460 $ 3.875 256% $14.764 10,674 4,090 $ 3.763 25.5% $13,740 10,243 3,497 $ 3,645 26.5% CASE 7 Under Armour's Turnaround Strategy in 2018: Efforts to Revive North American Sales and Profitability C-75 Fiscal Years Ending May 31 Sales Revenues and Earnings (in millions) 2017 2016 2015 $ 4,068 1,868 275 $ 6,211 4,443 1,768 $ 1,203 19.4% $ 3.985 1,628 271 $ 5,884 4,429 1,455 $ 1,434 24.4% $ 3,876 1,552 277 $ 5,705 4,451 1,254 $ 1,275 22.4% $ 2,920 1.188 $ 2,016 925 Western Europe Revenues-Nike Brand footwear Nike Brand apparel Nike Brand equipment Total Nike Brand revenues Sales to Wholesale Customers Sales Direct to Consumer Earnings before interest and taxes Profit margin Greater China Revenues-Nike Brand footwear Nike Brand apparel . Nike Brand equipment Total Nike Brand revenues Sales to Wholesale Customers Sales Direct to Consumer Earnings before interest and taxes Profit margin Other Regions Revenues-Nike Brand footwear Nike Brand apparel Nike Brand equipment Total Nike Brand revenues Sales to Wholesale Customers 129 126 $ 4,237 2.774 1,463 $ 1,507 35.6% $ 2,599 1,055 131 $ 3,785 2,623 1,162 $ 1,372 36.2% $ 3,067 2,234 833 993 32.4% $ 4,409 1.712 375 $ 6,496 5,105 $ 3,988 1,638 375 $ 6,001 4,851 $ 3,920 1.750 404 $ 6,074 5,024 EXHIBIT 7 Financial Highlights for The adidas Group, 2015-2017 (in millions of ) 2017 2016 2015 21.218 10,703 50.4% 2,070 9.8% 1,173 5.5% 18,483 9.100 49.2% 1,582 8.6% 1,017 5.5% 16,915 8,168 48.3% 1,094 6684 4.0% 3,692 4,033 3,763 3,468 3,113 2,133 Income Statement Data Net sales Gross profit Gross profit margin Operating profit Operating profit margin Net income Net profit margin Balance Sheet Data Inventories Working capital Net sales by brand adidas Reebok Net sales by product Footwear Apparel Equipment Net sales by region Western Europe North America Greater China Latin America Japan Middle East, Africa, and other Asian Markets Russia and Commonwealth of Independent States 18,993 1,843 16,334 1.770 13,939 1,731 12,427 7.747 1,044 10,132 7.352 999 8,360 6,970 5,883 4.275 4.275 3,412 3,010 1.731 4,539 2.753 2,469 1.783 3.789 1,907 1,056 2,907 1,007 776 2,685 679 2,388 739 660 From the provided financial data, what is Under Armour's financial condition? What do the financial statements suggest about the company's future? If present trends continue, where do you see Under Armbur in the next few years? pruus in the United States. EXHIBIT 1 Growth in Under Armour's Quarterly Revenues, 2010-2017 (in millions) Quarter 1 (Jan-March) Quarter 2 (April-June) Quarter 3 (July-Sept.) Quarter 4 (Oct-Dec.) Percent Change from Prior Year's Quarter 1 Percent Change from Prior Year's Quarter 2 Percent Change from Prior Year's Quarter 3 Percent Change from Prior Year's Quarter 4 Revenues Revenues Revenues Revenues 24.4% 14.7% 36.3% 23.0% 42.3% 2010 2011 2012 2013 2014 2015 2016 2017 $ 229.4 312.7 384.4 471.6 641,6 804.9 1.047.8 1,117.3 22.7% 26.8% 23.0% 34.1% $ 328.6 465.5 575.2 . 723.1 937.9 1,204.1 1,471.6 1,405.6 36.0% 25.5% 30.2% (2.97% 21.9% 41.7% 23.6% 25.7% 29.7% 28.4% 22.4% (4.5% $ 301.2 403.1 505.9 682.8 895.2 1,170.7 1,305.3 1,365.4 35.5% 33.9% 25.5% 35.0% 31.1% 30.8% 11.5% 4.6% w 8 28.5% 27.7% 8.7%, 1,088.2 Source: Company 10-K reports, 2017, 2016, 2015, 2013, 2012, and 2010 LAMIBIT 2 Selected Financial Data for Under Armour, Inc., 2014-2017 (in millions) Selected Income Statement Data 2017 2016 2015 2014 $4,825.3 2,584.7 2.240.6 1823.1 $3,963.3 2,057.8 1,905.5 1,497.0 $3,084.4 1.152.2 1,512.2 1,158.3 Net revenues Cost of goods sold Gross profit Selling general and administrative expenses Restructuring and impairment charges Income from operations Interest expense, net Other expense, net Income (loss) before income Provision for income taxes Net income (loss) $4.976.6 2.737.8 2.238.7 2,086.8 124.0 27.8 (34.5) (3.6) (10.3) 38.0 $ (48.3) 417.5 (26.4) (2.8) 388.3 131.3 $ 257.0 408.5 (14.6) (7.2) 386.7 154.1 $ 232.6 354.0 (5.3) (6.4) 3422 134.2 208.0 $ Selected Balance Sheet Data $ 312.5 1,277.3 1.158.5 Cash and cash equivalents Working capital Inventories at year-end Total assets Long-term debt, including current maturities Total stockholders' equity $ 250.5 1,279.3 917.5 3,644.3 817.4 2,030.9 $ 129.9 1,020.0 783.0 2,866.0 666.1 1668.2 $ 593.2 1,127.8 536.7 2,092.4 281.5 1,350.3 4,006.4 792.0 2,018.6 " Selected Cash Flow Data Net cash provided by operating activities $234.1 $ 364.4 ($ 14.5) $ 219.0 C. Operating Income (loss) by geographic region in millions of $) 2017 2016 2015 2014 $20.2 $408.4 $461.0 $3723 North America EMEA Asia-Pacific Latin America Connected fitness Total operating income 18.0 82.0 (37.1) (55.3) $ 27.8 11.4 68.3 (33.9). (368) $417.5 3.1 36.4 (30.6) 161.3 $408.5 (11.8) 21.9 (15.4) (13.1) $354.0 I EXHIBIT 6 Nike's Sales of Nike Brand Footwear, Apparel, and Equipment, by Geographic Region and by Wholesale and Direct-to-Customer, Fiscal Years 2015-2017 Fiscal Years Ending May 31 - Sales Revenues and Earnings (in millions) 2016 2017 2015 $9.299 4,746 $ 8,506 4,410 719 824 North America. Revenues-Nike Brand footwear Nike Brand apparel Nike Brand equipment Total Nike Brand revenues Sales to Wholesale Customers Sales Direct to Consumer Earnings before interest and taxes Profit margin $ 9,684 4,866 646 $15,216 10.756 4,460 $ 3.875 256% $14.764 10,674 4,090 $ 3.763 25.5% $13,740 10,243 3,497 $ 3,645 26.5% CASE 7 Under Armour's Turnaround Strategy in 2018: Efforts to Revive North American Sales and Profitability C-75 Fiscal Years Ending May 31 Sales Revenues and Earnings (in millions) 2017 2016 2015 $ 4,068 1,868 275 $ 6,211 4,443 1,768 $ 1,203 19.4% $ 3.985 1,628 271 $ 5,884 4,429 1,455 $ 1,434 24.4% $ 3,876 1,552 277 $ 5,705 4,451 1,254 $ 1,275 22.4% $ 2,920 1.188 $ 2,016 925 Western Europe Revenues-Nike Brand footwear Nike Brand apparel Nike Brand equipment Total Nike Brand revenues Sales to Wholesale Customers Sales Direct to Consumer Earnings before interest and taxes Profit margin Greater China Revenues-Nike Brand footwear Nike Brand apparel . Nike Brand equipment Total Nike Brand revenues Sales to Wholesale Customers Sales Direct to Consumer Earnings before interest and taxes Profit margin Other Regions Revenues-Nike Brand footwear Nike Brand apparel Nike Brand equipment Total Nike Brand revenues Sales to Wholesale Customers 129 126 $ 4,237 2.774 1,463 $ 1,507 35.6% $ 2,599 1,055 131 $ 3,785 2,623 1,162 $ 1,372 36.2% $ 3,067 2,234 833 993 32.4% $ 4,409 1.712 375 $ 6,496 5,105 $ 3,988 1,638 375 $ 6,001 4,851 $ 3,920 1.750 404 $ 6,074 5,024 EXHIBIT 7 Financial Highlights for The adidas Group, 2015-2017 (in millions of ) 2017 2016 2015 21.218 10,703 50.4% 2,070 9.8% 1,173 5.5% 18,483 9.100 49.2% 1,582 8.6% 1,017 5.5% 16,915 8,168 48.3% 1,094 6684 4.0% 3,692 4,033 3,763 3,468 3,113 2,133 Income Statement Data Net sales Gross profit Gross profit margin Operating profit Operating profit margin Net income Net profit margin Balance Sheet Data Inventories Working capital Net sales by brand adidas Reebok Net sales by product Footwear Apparel Equipment Net sales by region Western Europe North America Greater China Latin America Japan Middle East, Africa, and other Asian Markets Russia and Commonwealth of Independent States 18,993 1,843 16,334 1.770 13,939 1,731 12,427 7.747 1,044 10,132 7.352 999 8,360 6,970 5,883 4.275 4.275 3,412 3,010 1.731 4,539 2.753 2,469 1.783 3.789 1,907 1,056 2,907 1,007 776 2,685 679 2,388 739 660