Questioning where your growth is going. Yeah. Whats happening . First of all, i think we need to control the narrative a bit. When people refer to the last Earnings Call we were for q3, plus 22 on the top line and plus 23 on the bottom line. We narrative we taught about is where we saw operating income. Fourth quarter, great back to school. We felt good. What weve learned though and i think what weve seen is this business is much more. We have a Growth Company. Current outlook has double digit plus growth which is close to industry in sector leading amongst the leaders there. Our business is so young, our business is really just getting started. We look and you think of the opportunity we have is that we do need to make certain i understand investments and this isnt investments be damned. Im the larger shareholder. We remain committed to it. We have a great business and a great brand. And were going the keep driving stands it. You yourselves, a, quote, juggernaut. 20 straight quarters of at least 20 Revenue Growth until the streak was just broken. Can you get back to that level or is that in the past now . I think youve got to look at the record of success our company has put up. Think about 267 consecutive quarters im not sure if the streak will ever be broken again. If it is, i hope it will be us. Thats how we think about it every day. This is about what we looked at with the retail environments, we looked at whats happening in north america, business sense, primarily north america 85 of our business but lit be more than 20 , outside north america last year. As we continue to grow and find these other arteries of growth. North american retailers isnt a very difficult place. I think weve looked at some things that we could probably do better as well and so these are not things that are things outside of our control but a lot of things outside of our control. We are a top line Growth Company. We are a bottom line Growth Company. We understand both of these metrics. I think investors have learned over 11year record of success the last 6 1 2 enjoying 20 top line growth. More to come. Youre the ceo and the founder. This is your baby, so to speak. Yeah. When you watch the stock do what it has for the last two earnings perr periods, the stoc is half of what it was a year ago. Yeah. How do you deal with that . How does that make you feel . This is business is passionate. Bris can never be emotion approximately. When you look and understand what the longterm vision of the company is, weve had a great run as company. Again, 11 years public. Weve seen it all. We lived through 08 and 09. Weve seen highs and lows. I would not bet against under armour. If theres a message for shfd shareholder, look at what weve done for 26 quarters. If you had to tell me 26 years ago we wake up in 2017 and have a company approaching 5. 5 billion dollars in revenue, the suite of some of the most Premium Sports in the world, i would probably tell you thats a pretty good story. The reason i wanted to wait a week is touk about this company plays offense. This company throws punches. Thats what we do and its how we continue to expect to be able to run again. We feel good. But there are tweaks. And this is not to say the world is rosy. This is to say like any company, and a great stat. A great stat. Our business doubled in the last three years. So we are 2. 3 billion in 2013. Finished just under 4 or 5. 8 billion. Companies that double like that. Things happen. This is not an excuse but the players havent changed. It doesnt mean the team is different, the outlook or ambition or upside is any different. It means we are running forward and building a fastgrowing company and were building one thats here to stay for a very long time. You just said tweaks. What needs to be tweaked . Are you spending too much . What particularly has to be tweaked . When you look at the calibration moment that were in as business and so there are things you have to worry about. Growth does hide a lot of inefficiency. And i think theres some opportunities for us to be better. This isnt, again, we have a great business. When you look down at the pieces and you look at the momentum of growth and you look at this year we had womens business cross a billion dollar, footwear business cross a billion dollars. Those engines are in place. We look at the business and say theres always opportunities for companies to get better. We think about ways we can do that. It is. When we look at the new heads and what we need and how do we streamline the business and the operations that we have, i think theres opportunities in every company. And so this doesnt mean this is more than just lets turn off the lights before you leave the office. But there are things like that, too. People didnt have to think about that as much because of what growth does and what growth means to our company. You know how this is, though. Your growth by any measure is better than impressive, obviously. When your stock is trading at a particular valuation, some people want it to be at a specific level of where its always been and the moment it slips people start to question where you are in your overall strategy of becoming as youve said repeatedly, the Number One Company in the world. Yeah. Scott, lets slow down. One thing is really important, this company grew 870 million in revenue last year. Grow another 600 million in revenue this year. Were going to make more than 300 million. This is not a company on the ropes. Like anyone, i think Operational Efficiency is critical for any business. Recalibrating at those moments and opportunities to do it, yes. We look at things like when you see the growth and the amount of people who dove in to athletic wear, this isnt something restricted to just being sold to Sporting Goods. leisure and athletic wear is in a Broader Market appeal. Where we think we could do better, we look at the frukt weve had on the floor and weve relied on things like 55 hoo e hoodies to sell and think how innovative, how much build needs to be in there because the same hoodies that sold a year ago are not the same hoodies that will grow this year. Find lifestyle and more opportunities beyond the athletic fields. Those are opportunities for us. You look at the bets weve made and we can probably debate the time of how weve made those bets but whether it was moving from performance of a lifestyle. We launched under armour sportswear collection which will help us fill that gap that lifestyle opportunity. Kids want to wear our brand. Ask the people out there, your kids closets, they have under armour. They love under armour. Theres no brandish shoe here. When we look and say our competition has a third 2040 of their business, two major competitors, in lifestyle. For under armour its less that 5 this this isnt we dont know how to do it or make lifestyle product, we do. Give us the platform. Give us the time to do it i didnt want under armour to become i never want us to be a one trick pony. Were not just about growth. Managing and tefrerring that growth has a lot of things that go into it. Its everything from the retail environment thats out there, which there are good retailers. People have survived this. This is us taking account inlt for our own actions, first and foremost. But there are things that went ever when we look at the growth whether weve got a new system with s. A. P. , great partner of ours, help us connect 200 Million People we have in the connective fitness platform in the database and giving us information about sleep and exercise and how that will form in decision to help us sill more shirts than shoes. Weve got a lot of longterm bets that are in play. Wish they would happen faster. The shift from north america to rest of the world. The shift from one of our retailer which was the Sports Authority last year. And we made the decision to move into kohls but we didnt do that until 2017. Do we anticipate they would go out of business . No, thats not something we thought about. Welcome to business. You look in my eyes and tell me do you believe this is the team thats done this for 21 years, 11 years public and knows how to win . You know, i think a lot of people they bet against tom brady the other night, too. Learn the hard way what thats about. You did. To continue your your analogy, you did lose a key teammate. Your cfo is leaving. And thats going to unsettle many folks on the street after, what, hes only there for barely a year. Cfo left for personal reasons. Hes still there. Hes a good man. Naval academy grad. Were really proud of some of the others that weve had. And brown, our head of sourcing, came from bf recently. Duncan kcmo came from the mad thing about business is when listening to people press release, weve got 15,000 teammates. Weve got an executive team that is robust and full and same people that got us here. One of the lessons that we learned and we know, you ask is this the end . No, this is not the end. This is a company that we understood the same things that got us to the billion dollars is not the same thing that will get us to 5 billion. We take these moments and have it without just the Innovative Growth weve been able to love and feel is because we dont want to press our product into a market that is now back so price focused, we dont want to be the 30 option in the store, we want to be the 75 premium that drives innovation. This is an opportunity for us to unfortunately i dont think youre getting the press release of all those that stay. That is the world of hr welcomes to theres when you bat you typically theres not everyone is going to be there for a number of different reasons. Just the position in and of itself, having to go through another cfo, structurally, does that delay the way you would allocate capital, the way you would think about those types of decision, having to be potentially put off because you have a new person in the seat . No, i dont think so at all. Our Growth Strategy is intact. The investment pieces for under armour is intact. Weve changed the top line and said, you know what, we dont think its best thing for us just to declare were just going to grow because theres a lot of things that have come up. A lot of it ask outside of our control. In the last two years, the last sorry, the last 16 months, you know, weve had over 5 billion of top line revenue disappear from our industry. Is that going to have an affect on under armour . 85 in north america. Again, a little less than eighty next year. You look at that growth and like, yeah, were on rest of world because international, 63 for thus year. China taking stephan cu curry t tours and people are demanding the brand. Its not every place but north america. North america is a good place, too. Again, the growth were talking about is still double digits and something that were excited. So we want to get people and make sure they know we are a Growth Company. We remain one. But were prudent in our investment pieces and the way were going to make thoughtful investments to ensure we become a 10 billion brand. Getting to where we did and through 20 years in history, very proud of it. But the mission that we have has not changed. Our vision is to be that 10 billion brand. Unfortunately weve got a 10 billion business 5 billion Business Today where were investing in infrastructure to be a 10 b10 billion company. Were to the doing that without any thought, either. Like were doing it very thoughtfully. If theres things we need to do, we are prepared to make the difficult decisions. Thats how a company lives 20 years in business and especially the way that under armour has. Do you feel like you need to win back, so to speak, wall street support . Youve had, i dont know, at least ten downgrades of the stock since earnings. People seem to be running for the hills. Obviously investors have been selling the stock. Analysts have been taking undo it by sffairly dramatic levels. Our record of success, if you want to start a business and you want to give us money and say, you know what, i believe in under armour, im going to bet on the jockeys. Theres a number of jockeys. This isnt a oneman or onewoman company. There is a team of people. And i tell you right now our team of people, theyre pissed off. Yeah, they feel it. This is one of those things when you win and win and win, 26 quarters and when people are piling up our difficult quarters its not a fact. So we had a tough time in the Fourth Quarter. I think we came incredibly transparent about it. We gave it great logic as to why it happened, great logic of the deep root cause were taking action for and addressing. Well address that in 2017. Wall street can count on us. Theyve always been able to count on us. Our track record and our history is worth something. We build up enormous amount of credibility . Yes. Trust is built and dropped and its lost in buckets. Do we have to spend some of that credibility and equity . I believe we probably did, but this isnt no ones changed, no ones picked up the a new hobby. This is the same Growth Company i think that people once knew and, you know, were proud of go get it. My team at under armour couldnt be more excited and angry and ready to go. Youre the top jockey as you say. Sort of the terminology that you used. One of my pan lists suggested that maybe you should pull a jamie dimon, use the opportunity to buy back your stock when it got hammered so much as a sign of credibility in the market, support, belief, et cetera. Im wondering if you did do that and, if not, if you thought about it or you will. These inflexion moments in time, like these are these points, these opportunities, like this is an opportunity for us to change the way that we run our business. The not just be growth driven but to truly build a company that is as a company thats as great as our brand. Again, we have a good company. We have people working hard. Bejust need to tighten the belt a little bit. Give us the opportunity to do that and impress you. Were not looking at buying back stock i mean, you personally. Theres you know the point i make, jamie dimon steps in and buy and all of a sudden the financials and jpmorgan stock, this new sort of lease on life as a result of what that means in the marketplace. Of course. Optically if nothing else. More importantly has been my commitment to, you know, our company, is that ive remained the largest shareholder. Ive had lots of opportunities to sell my stock but i havent. I just like being at under armour and i believe the opportunity is so much greater than what people have seen. I believe we have the opportunity to be the number one brand in the world and our competition knows it. People have fun. Continue to kick us a little bit. Thats all right. Because weve demonstrated like we are we are we can demonstrate our own toughness and we can take it. But we want to run we want to run this company and if investors need a message, were not going anywhere. My two feet are planted this this company. My Management Teams two feet are planted in this company. Everybody has a little chip on their shoulder right now and we look forward to making right. I want to talk more broadly about the Retail Business you clearly somewhat have to be caught up in. You said on the earnings day that, quote, numerous challenges and disruptions in north america retail tempered our results. What are the specific challenges that you along with these other retailers seem to be not only dealing with but having a hard time over democrats comecoming. I pause to be the mouthpiece for the whole industry but ill tell you what happened with under armour. Number one, yeah, the closures had an impact on something that we thought would come back more dollar for dollar. That wasnt the case. We have to be more creative and inventive of how to get the money. Number two, we look at ourselves and say under armour has sold and created a commodity of business, whether its coldgear mock, basic base layer for cold weather or the hood disand other things, just become these key items. I think in time is that i believe in the Fourth Quarter that we werent as aggressive as we should have been. And i think we got into, consumer are going to show up and buy our product. It wasnt just because of lack of theres good product on the line. We just allowed some of the more basic product to make it to the floor because it was easier. Because the consumer always bought this. The come modization of the basics and expanse of where its going in the retail Distribution Channels is minimized the need for the consumer to get it from the under armour from there. That combined with promotional environment that had two key competitors, they were 40 and 50 off restrictively. We find ourselves in position saying to we chase price down and this is where we were in the Fourth Quarter. What we found is we might have been late to the party and then we started to say, weve got to move these goods because we cant we have a business to run. And as we began to do that and 15 to 20 of other pricing our product moves. This is not a brandish shoe. Our product moved but it moved in a number because the consumer is trained for that. Another stat i lovednt the Fourth Quarter is the Fourth Quarter our dtc business was 40 of our business. And so you look again at the moves from wholesale to district consumers. We have great wholesale customers. Were going to continue to do busine big business with them but we need to control our destiny. That means having a relationship with them. We want to be the premium player in their stores. Youre not going to waulk in a store and find under armour at 40 off. Its been dismal experience for a lot of people and its not the brand that wanted to be and its not the opportunity that we have. Broader point that im trying to raise is that youre forced to do things because in some respects consumers have been, even if youre selling premium brands, consumers are so used to paying less for almost everything since the crisis. Is that going to change . I mean, weve demonstrated a track record of being able to sell product at full price. Its one of the things that when we broke into Sporting Goods we started in the equipment section because thats what under armour was in 2002. Equipment to apparel section. Maintain margins, able to keep. Weve created a category, created our own pie, new pie, we expanded the existing on