Under Armour

Footwear and Apparel

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

US Equity Research Pallav Saini | Associate | Canaccord Genuity Inc. (US) | psaini@canaccordgenuity.com | 212.389.8054
20 April 2017

HOLD Estimates Revised

unchanged
PRICE TARGET US$20.00
unchanged
Price (19-Apr) US$19.19
Time heals all wounds, and UA needs more time;
Ticker UA-NYSE
maintain HOLD, $20 PT
52-Week Range (US$): 18.40 - 47.95 Investment recommendation
Market Cap (US$M): 8,589
Shares Out. (M) : 447.6
The trifecta of headwinds that plagued UA last year (overexposure to sporting goods,
overexposure to NA, and overexposure to performance apparel) has not abated, in our
FYE Dec 2016A 2017E 2018E opinion. While UA is working to diversify its channel mix as evidenced by its recent entry
Sales (US$M) 4,828 5,401 6,220 into KSS (and forthcoming entry into DSW and Famous Footwear later this year), our
Previous - 5,397 6,224 checks suggest the apparel segmentation efforts have fallen short of expectations. In
P/Sales (x) 1.8 1.6 1.4 addition, we are concerned about the lackluster trends in footwear (and Curry) as it is
EPS (US$) 0.58 0.41 0.52 a key element to the growth story. Specifically, we believe the combination of a lack of
P/E (x) 33.0 46.3 37.2 newness/differentiation in the Curry 3 coupled with too many releases too soon at a
higher price point ($140) resulted in tepid Q1 sales. The latest Curry 3Zero release at
Quarterly Sales Q1 Q2 Q3 Q4
$120 appears to be doing modestly better. We highly regard the brand and its long-term
2016A 1,048 1,001 1,472 1,308
2017E 1,103 1,072 1,649 1,577
growth prospects; however, the product and geographic diversification occurring now
2018E 1,278 1,242 1,893 1,808
will take time to yield results. As such, we remain cautious on UA heading into its 1Q17
report on Thursday, April 27 BMO.
Quarterly EPS Q1 Q2 Q3 Q4 Muted Q1 expectations as promotions and competition heat up: For Q1, we are
2016A 0.04 0.01 0.29 0.23 projecting EPS of -4c vs. -3c consensus on net revenue growth of +5.3%, slightly
2017E (0.04) (0.09) 0.26 0.29 below consensus of +5.9%. By category, we are projecting +2% growth in apparel as
2018E (0.03) (0.08) 0.29 0.34
the category continues to suffer from sporting goods bankruptcies, a limited casual
60 lifestyle assortment, and heavy promotional activity by competitors like Nike. On this
55 last point, we have learned that Nike has relaxed its MAP (minimum advertised price)
50 policy guardrails on apparel, thus allowing retailers to offer 25% off apparel throughout
45 the year vs. only during limited times previously. This is a sign that Nike is taking an
40 aggressive stance toward UA while it is weakened and/or this is Nike's way of attempting
35 to claw back lost market share at the expense of gross margin neither of which is good
30
for UA. As for footwear, competition is fierce as Adidas is not showing signs of slowing,
25
but at least the market is not abnormally promotional. We are projecting revenue growth
20
of +13% in footwear, implying a sequential deceleration of ~54ppts on a two-year basis
due to soft Curry sales. With higher markdowns anticipated, we project GM will be down
15
108bps and inventory will remain elevated through Q3 before normalizing in Q4.
May-16

Aug-16

Mar-17
Nov-16

Apr-17
Dec-16

Feb-17
Sep-16
Jun-16

Oct-16

Jan-17
Jul-16

New channel expansion should help keep full-year outlook intact but with a back-
UA half weighting: With the channel expansion efforts fully underway, we do not anticipate
S&P500(rebased)
Source:FactSet
a change to the company's full-year outlook as incremental sell-in should help mitigate
Priced as of close of business 19 April 2017
the lost sales from TSA and other smaller regional sporting goods retailers. That said,
we do believe the company will place a greater proportion of the full-year sales growth
Under Armour is a leading manufacturer of athletic apparel, weighting on 2H17. We thus are reducing our Q2 sales growth/EPS estimates from
footwear, and accessories, selling its products through 13.7%/-4c to 7.1%/-9c and commensurately increasing our Q4 estimates to 20.6% sales
wholesalers, factory outlet stores, and online.
growth and 29c in EPS with no change to our full year 41c EPS estimate.
Valuation
Our $20 PT is based on a blend of 35x 2018E EPS, 18x EV/EBITDA, and DCF.
Canaccord Genuity is the global capital markets group of Canaccord Genuity Group Inc. (CF : TSX)
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
Estimates Revised

Figure 1: UA projected income statement

December Fiscal
Incom e Statem ent 1Q16 2Q16 3Q16 4Q16 1Q17E 2Q17E 3Q17E 4Q17E 1Q18E 2Q18E 3Q18E 4Q18E 2012 2013 2014 2015 2016 2017E 2018E
Revenue
Apparel 666.6 612.8 1,021.2 928.5 679.9 631.2 1,082.5 1,058.5 747.9 694.3 1,190.7 1,164.4 1,385.4 1,762.2 2,291.5 2,801.1 3,229.1 3,452.1 3,797.3
Footw ear 264.2 242.7 278.9 227.7 298.6 279.1 362.6 330.2 388.2 362.8 471.3 429.2 239.0 298.8 431.0 677.7 1,013.5 1,270.4 1,651.6
Accessories 79.7 100.7 121.8 104.3 83.7 110.8 146.2 130.4 92.1 121.9 160.8 143.5 165.8 216.1 275.4 346.9 406.6 471.1 518.2
Total Net Sales 1,010.5 956.3 1,421.9 1,260.6 1,062.2 1,021.1 1,591.2 1,519.1 1,228.1 1,179.1 1,822.8 1,737.1 1,790.1 2,277.1 2,997.9 3,825.7 4,649.3 5,193.7 5,967.1
Licensing revenues 19.4 21.0 29.5 29.9 20.4 25.2 35.4 35.9 24.5 30.2 42.5 43.1 44.8 55.0 67.2 84.2 99.8 116.9 140.3
Connected Fitness 18.5 23.5 20.2 18.3 20.4 25.8 22.2 21.9 25.4 32.3 27.7 27.4 0.0 0.0 19.2 53.4 80.4 90.3 112.9
Intersegment eliminations (0.8) 0.0 (0.7) 0.0 0.0 0.0 0.0 (1.4) 0.0 0.0
Total Net Revenue 1,047.7 1,000.8 1,471.6 1,308.1 1,102.9 1,072.2 1,648.8 1,577.0 1,278.0 1,241.6 1,893.1 1,807.6 1,834.9 2,332.1 3,084.4 3,963.3 4,828.2 5,400.9 6,220.3

COGS 567.1 523.1 772.9 721.6 608.8 562.9 865.6 867.3 702.9 649.4 992.9 985.1 955.6 1,195.4 1,572.2 2,057.8 2,584.7 2,904.7 3,330.3
Gross Profit 480.6 477.6 698.6 586.6 494.1 509.3 783.2 709.6 575.1 592.3 900.1 822.5 879.3 1,136.7 1,512.2 1,905.5 2,243.5 2,496.2 2,890.0
SG&A 445.8 458.3 499.3 419.8 508.2 554.5 604.2 508.0 584.4 637.7 694.8 584.2 670.6 871.6 1,158.3 1,497.0 1,823.1 2,174.8 2,501.0
Operating Incom e 34.9 19.4 199.3 166.8 (14.0) (45.2) 179.0 201.7 (9.3) (45.4) 205.4 238.3 208.7 265.1 354.0 408.5 420.3 321.4 389.0

Interest expense, net (4.5) (5.8) (8.2) (8.0) (10.0) (10.0) (10.0) (10.0) (10.0) (10.0) (10.0) (10.0) (5.2) (2.4) (5.3) (14.6) (26.4) (40.0) (40.0)
Other Income, net 2.7 (3.0) (0.8) (1.7) (1.0) (1.0) (1.0) (1.0) (1.0) (1.0) (1.0) (1.0) (5.3) (4.1) (6.4) (7.2) (2.8) (4.0) (4.0)
Pretax Income 33.1 10.7 190.3 157.1 (25.0) (56.2) 168.0 190.7 (20.3) (56.4) 194.4 227.3 198.3 258.6 342.2 386.7 391.1 277.4 345.0
Taxes 13.9 4.3 62.1 52.2 (7.0) (15.7) 53.8 61.0 (6.7) (18.6) 64.1 75.0 74.7 98.7 134.2 154.1 132.5 92.0 113.8
Net Income $19.2 $6.3 $128.2 $104.9 ($18.0) ($40.5) $114.2 $129.7 ($13.6) ($37.8) $130.2 $152.3 $123.6 $159.9 $208.0 $232.6 $258.7 $185.4 $231.1
EPS, diluted $0.04 $0.01 $0.29 $0.23 ($0.04) ($0.09) $0.26 $0.29 ($0.03) ($0.08) $0.29 $0.34 $0.29 $0.37 $0.48 $0.53 $0.58 $0.41 $0.52
Factset Consensus $0.05 $0.01 $0.25 $0.25 ($0.03) ($0.03) $0.26 $0.22 ($0.02) ($0.01) $0.29 $0.25 $0.60 $0.72 $0.49 $0.54 $0.60 $0.42 $0.50

Shares outstanding, diluted 443.3 442.9 445.9 447.6 447.6 447.6 447.6 447.6 447.6 447.6 447.6 447.6 425.2 428.6 436.0 440.9 444.9 447.6 447.6

Margin Analysis
Gross Margin Total 45.9% 47.7% 47.5% 44.8% 44.8% 47.5% 47.5% 45.0% 45.0% 47.7% 47.6% 45.5% 47.9% 48.7% 49.0% 48.1% 46.5% 46.2% 46.5%
y/y change (bps) (1.04%) (0.65%) (1.29%) (3.14%) (1.08%) (0.23%) 0.03% 0.16% 0.20% 0.20% 0.05% 0.50% (0.48%) 0.82% 0.29% (0.95%) (1.61%) (0.25%) 0.24%
SG&A 42.5% 45.8% 33.9% 32.1% 46.1% 51.7% 36.6% 32.2% 45.7% 51.4% 36.7% 32.3% 36.5% 37.4% 37.6% 37.8% 37.8% 40.3% 40.2%
leverage/(deleverage) 0.94% (1.49%) 0.60% 0.72% (3.53%) (5.93%) (2.71%) (0.12%) 0.35% 0.36% (0.06%) (0.11%) 0.80% (0.83%) (0.18%) (0.22%) 0.01% (2.51%) 0.06%
EBIT Margin 3.3% 1.9% 13.5% 12.7% (1.3%) (4.2%) 10.9% 12.8% (0.7%) (3.7%) 10.8% 13.2% 11.4% 11.4% 11.5% 10.3% 8.7% 6.0% 6.3%
Other income 0.3% (0.3%) (0.1%) (0.1%) (0.1%) (0.1%) (0.1%) (0.1%) (0.1%) (0.1%) (0.1%) (0.1%) (0.3%) (0.2%) (0.2%) (0.2%) (0.1%) (0.1%) (0.1%)
Taxes 42.0% 40.5% 32.6% 33.2% 28.0% 28.0% 32.0% 32.0% 33.0% 33.0% 33.0% 33.0% 37.7% 38.2% 39.2% 39.9% 33.9% 33.2% 33.0%
Net Income 1.8% 0.6% 8.7% 8.0% (1.6%) (3.8%) 6.9% 8.2% (1.1%) (3.0%) 6.9% 8.4% 6.7% 6.9% 6.7% 5.9% 5.4% 3.4% 3.7%
Grow th Analysis
Revenue
Apparel 20.0% 18.9% 18.0% 7.4% 2.0% 3.0% 6.0% 14.0% 10.0% 10.0% 10.0% 10.0% 23.5% 27.2% 30.0% 22.2% 15.3% 6.9% 10.0%
Footw ear 64.2% 58.0% 42.1% 36.4% 13.0% 15.0% 30.0% 45.0% 30.0% 30.0% 30.0% 30.0% 31.5% 25.1% 44.2% 57.3% 49.5% 25.3% 30.0%
Accessories 26.2% 21.3% 17.6% 7.4% 5.0% 10.0% 20.0% 25.0% 10.0% 10.0% 10.0% 10.0% 25.3% 30.3% 27.4% 26.0% 17.2% 15.9% 10.0%
Total Net Sales 29.6% 27.2% 22.0% 11.7% 5.1% 6.8% 11.9% 20.5% 15.6% 15.5% 14.6% 14.3% 24.7% 27.2% 31.7% 27.6% 21.5% 11.7% 14.9%
Licensing revenues 14.7% 16.0% 21.3% 20.4% 5.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 22.5% 22.8% 22.3% 25.3% 18.6% 17.1% 20.0%
Connected Fitness 119.4% 73.3% 39.8% 7.6% 10.0% 10.0% 10.0% 20.0% 25.0% 25.0% 25.0% 25.0% 177.8% 50.6% 12.3% 25.0%
Total Net Revenue 30.2% 27.7% 22.2% 11.7% 5.3% 7.1% 12.0% 20.6% 15.9% 15.8% 14.8% 14.6% 24.6% 27.1% 32.3% 28.5% 21.8% 11.9% 15.2%
Gross Profit Dollars 27.3% 26.0% 19.0% 4.4% 2.8% 6.6% 12.1% 21.0% 16.4% 16.3% 14.9% 15.9% 23.4% 29.3% 33.0% 26.0% 17.7% 11.3% 15.8%
Gross Profit Dollars ex-licensing revs 27.9% 26.5% 18.9% 3.7% 2.7% 6.0% 11.8% 21.0% 16.2% 16.1% 14.7% 15.7% 23.4% 29.6% 33.6% 26.0% 17.7% 11.0% 15.6%
SG&A 27.4% 32.0% 20.1% 9.3% 14.0% 21.0% 21.0% 21.0% 15.0% 15.0% 15.0% 15.0% 21.9% 30.0% 32.9% 29.2% 21.8% 19.3% 15.0%
EBIT 26.1% (39.3%) 16.3% (6.1%) (140.2%) (333.3%) (10.2%) 20.9% (34.0%) 0.5% 14.7% 18.2% 28.2% 27.0% 33.5% 15.4% 2.9% (23.5%) 21.0%
Net Income 63.5% (57.0%) 27.6% (0.7%) (194.0%) (738.0%) (10.9%) 23.6% (24.7%) (6.6%) 14.0% 17.5% 32.8% 29.4% 30.1% 11.8% 11.2% (28.3%) 24.7%
EPS 62.1% (57.3%) 26.5% (1.8%) (193.1%) (731.2%) (11.2%) 23.6% (24.7%) (6.6%) 14.0% 17.5% 31.2% 28.3% 27.9% 10.5% 10.2% (28.8%) 24.7%
Source: Company reports, Canaccord Genuity Research
A more detailed financial model, including balance sheet, income statement, and cash flow projections, if available, may be obtained by contacting your Canaccord Genuity Sales Person or the Authoring Analyst, whose contact information appears on the front page of this report.

2
Hold unchanged Target Price US$20.00 unchanged | 20 April 2017 Footwear and Apparel 2
 Under Armour
Estimates Revised

Other stocks under coverage discussed in this report:

Nike (NKE : NYSE : $55.86 | HOLD).

2
Hold unchanged Target Price US$20.00 unchanged | 20 April 2017 Footwear and Apparel 3
 Under Armour
Estimates Revised

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 FINRA Rule 2241 and NYSE Rule 472 restrictions on communications
with a subject company, public appearances and trading securities held by a research analyst account.
Sector Coverage
Individuals identified as Sector Coverage cover a subject companys industry in the identified jurisdiction, but are not authoring
analysts of the report.

Investment Recommendation
Date and time of first dissemination: April 20, 2017, 05:04 ET
Date and time of production: April 20, 2017, 05:04 ET
Target Price / Valuation Methodology:
Under Armour - UA
Our $20 target is based on a blend of 35x our 2018E EPS, 18x EV/EBITDA, and DCF.
Nike - NKE
Our $51 price target is a blend of 20x 2018E EPS, 12x 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 unforeseen supply chain issues that could lead to gross margin contraction and/or order cancellations. Should demand for its
product continue to outstrip supply, margins could suffer as the company is forced to compensate its customers for late deliveries.
Nike - NKE
The following risks to our thesis could impact our estimates and therefore our price target: 1. We believe the primary risk to our thesis is
a deceleration of top-line growth characterized by a sharp deceleration of demand for key running and/or basketball product. We believe
NKE's P/E 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 any unforeseen supply chain issues that could lead to gross margin
contraction and/or order cancellations. 3. Increasing competition from Under Armour and Adidas also poses a risk.

Distribution of Ratings:
Global Stock Ratings (as of 04/20/17)
Rating Coverage Universe IB Clients
# % %
Buy 570 60.38% 38.95%
Hold 275 29.13% 18.18%
Sell 28 2.97% 10.71%
Speculative Buy 71 7.52% 69.01%
944* 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.
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.

Hold unchanged Target Price US$20.00 unchanged | 20 April 2017 Footwear and Apparel 4
 Under Armour
Estimates Revised

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
SPECULATIVE: Stocks bear significantly higher risk that typically cannot be valued by normal fundamental criteria. Investments in the
stock may result in material loss.
12-Month Recommendation History (as of date same as the Global Stock Ratings table)
A list of all the recommendations on any issuer under coverage that was disseminated during the preceding 12-month period
may be obtained at the following website (provided as a hyperlink if this report is being read electronically) http://disclosures-
mar.canaccordgenuity.com/EN/Pages/default.aspx

Required 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
and Nike or in any related derivatives.
Canaccord Genuity or one or more of its affiliated companies intend to seek or expect to receive compensation for Investment Banking
services from Under Armour and Nike in the next three months.
An analyst has visited the material operations of Under Armour and Nike. No payment was received for the related travel costs.
Under Armour Rating History as of 04/19/2017
B:$80.00 B:$93.00 B:$97.00 B:$105.00 B:$130.00 B:$65.00 B:$44.00 H:$20.00
07/24/14 12/03/14 02/05/15 07/23/15 10/14/15 04/18/16 10/25/16 01/31/17
$140
$120
$100
$80
$60
$40
$20
$0
Jul 14 Oct 14 Jan 15 Apr 15 Jul 15 Oct 15 Jan 16 Apr 16 Jul 16 Oct 16 Jan 17 Apr 17

Closing Price Target Price

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

Nike Rating History as of 04/19/2017

H:$35.50 H:$38.00 H:$44.00 H:$47.00 H:$46.50 H:$48.00 H:$54.00 H:$54.50 H:$59.50 H:$61.50 H:$66.00 H:$57.00 H:$56.00 H:$52.00 H:$51.00
06/02/14 06/27/14 09/26/14 12/15/14 03/18/15 03/20/15 06/25/15 09/22/15 09/25/15 10/15/15 12/21/15 03/23/16 06/29/16 09/23/16 10/13/16
$75
$70
$65
$60
$55
$50
$45
$40
$35
Jul 14 Oct 14 Jan 15 Apr 15 Jul 15 Oct 15 Jan 16 Apr 16 Jul 16 Oct 16 Jan 17 Apr 17

Closing Price Target Price

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

Online Disclosures
Up-to-date disclosures 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

Hold unchanged Target Price US$20.00 unchanged | 20 April 2017 Footwear and Apparel 5
 Under Armour
Estimates Revised

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.
General Disclaimers
See Required Company-Specific Disclosures above for any of the following disclosures required as to companies referred to in this
report: manager or co-manager roles; 1% or other ownership; compensation for certain services; types of client relationships; research
analyst conflicts; managed/co-managed public offerings in prior periods; directorships; market making in equity securities and related
derivatives. For reports identified above as compendium reports, the foregoing required company-specific disclosures can be found in
a hyperlink located in the section labeled, Compendium Reports. 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 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 Investment Banking
activities, or to recommendations contained in the research.
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.
From time to time, Canaccord Genuity salespeople, traders, and other professionals provide oral or written market commentary or
trading strategies to our clients and our principal trading desk that reflect opinions that are contrary to the opinions expressed in this
research. Canaccord Genuitys affiliates, principal trading desk, and investing businesses also from time to time 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.
Research Distribution Policy
Canaccord Genuity research is posted on the Canaccord Genuity Research Portal and will be available simultaneously for access by all
of Canaccord Genuitys customers who are entitled to receive the firm's research. In addition research may be distributed by the firms
sales and trading personnel via email, instant message or other electronic means. Customers entitled to receive research may also
receive it via third party vendors. Until such time as research is made available to Canaccord Genuitys customers as described above,
Authoring Analysts will not discuss the contents of their research with Sales and Trading or Investment Banking employees without prior
compliance consent.
For further information about the proprietary model(s) associated with the covered issuer(s) in this research report, clients should
contact their local sales representative.
Short-Term Trade Ideas
Research Analysts may, from time to time, discuss short-term trade ideas in research reports. A short-term trade idea offers a near-
term view on how a security may trade, based on market and trading events or catalysts, and the resulting trading opportunity that may
be available. Any such trading strategies are distinct from and do not affect the analysts' fundamental equity rating for such stocks. A
short-term trade idea may differ from the price targets and recommendations in our published research reports that reflect the research
analyst's views of the longer-term (i.e. one-year or greater) prospects of the subject company, as a result of the differing time horizons,
methodologies and/or other factors. It is possible, for example, that a subject company's common equity that is considered a long-

Hold unchanged Target Price US$20.00 unchanged | 20 April 2017 Footwear and Apparel 6
 Under Armour
Estimates Revised

term Hold' or 'Sell' might present a short-term buying opportunity as a result of temporary selling pressure in the market or for other
reasons described in the research report; conversely, a subject company's stock rated a long-term 'Buy' or Speculative Buy could be
considered susceptible to a downward price correction, or other factors may exist that lead the research analyst to suggest a sale over
the short-term. Short-term trade ideas are not ratings, nor are they part of any ratings system, and the firm does not intend, and does not
undertake any obligation, to maintain or update short-term trade ideas. Short-term trade ideas are not suitable for all investors and are
not tailored to individual investor circumstances and objectives, and investors should make their own independent decisions regarding
any securities or strategies discussed herein. Please contact your salesperson for more information regarding Canaccord Genuitys
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. Canaccord Genuity Corp. is registered and regulated by the Investment Industry Regulatory Organization of Canada (IIROC)
and is a Member of the Canadian Investor Protection Fund. 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 Persons:
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 FINRA Rule 2241 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 Hong Kong Residents:
This research is distributed in Hong Kong by Canaccord Genuity (Hong Kong) Limited which 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) Limited. (Contact Tel: +852 3919 2561) in respect of any matters arising from, or
in connection with, this research.
Additional information is available on request.
Copyright Canaccord Genuity Corp. 2017 Member IIROC/Canadian Investor Protection Fund
Copyright Canaccord Genuity Limited. 2017 Member LSE, authorized and regulated by the Financial Conduct Authority.
Copyright Canaccord Genuity Inc. 2017 Member FINRA/SIPC

Hold unchanged Target Price US$20.00 unchanged | 20 April 2017 Footwear and Apparel 7
 Under Armour
Estimates Revised

Copyright Canaccord Genuity (Australia) Limited. 2017 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.
None of the material, nor its content, nor any copy of it, may be altered in any way, reproduced, or distributed to any other party
including by way of any form of social media, without the prior express written permission of the entities listed above.

Hold unchanged Target Price US$20.00 unchanged | 20 April 2017 Footwear and Apparel 8