1. What financial performance issues do you see at Under Armour based on the data in case Exhibits 1, 2, and 3?

Exhibit 1 shows selected financial statement data for Under Armour for 2016 through 2019. EXHIBIT 1 Selected Financial Data for Under Armour, Inc., 2016-2019 (in millions) 2019 2018 2017 2016 $5,267.1 2,796.6 2,470.5 2,233.8 $4,833.3 2,584.7 2.248.6 1831.1 $5,193.2 2,852.7 2.340.5 2,182.3 183.1 (25.0) (33.6) (9.2) 67.8 $4,989.2 2,737.8 2.251.4 2,099.5 124.0 27.8 (34.5) (3.6) (10.3) 38.0 Selected Income Statement Data 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 taxes Income tax expense (benefit) Income (loss) from equity method investment Net income (loss) Selected Balance Sheet Data Cash and cash equivalents Working capital Inventories at year-end Total assets Long-term debt, including current maturities Total stockholders' equity Selected Cash Flow Data Net cash provided by operating activities 236.8 (21.2) (5.7) 209.8 70.0 (47.7) 92,1 417.5 (26.4) (2.8) 388.3 131.3 (46.3) $ (48.3) $ 257.0 $ 788.1 1.280.2 892.3 4,843.5 592.7 2.150.1 $ 557.4 1.277.7 1,019.5 4.245.0 728.8 2,016.9 $ 312.5 1,277.3 1,158.5 4.006.4 917.0 2,018.6 $ 250.5 1,279.3 917.5 3.644.3 817.4 2,030.9 $ 509.0 $ 628.2 $ 234.1 $ 364.4 *Working capital is defined as current assets minus current liabilities. Note: Some totals may not add up due to rounding and to the omission of some line items in the com- pany's income statement and consolidated balance sheet. Source: Company 10-K report for 2019, pp. 28-29 and pp. 5559. EXHIBIT 3 Under Armour's Revenues, by Product Category 20162019 (in millions of $) 2018 2017 2016 2019 Dollars Percent Dollars Percent Dollars Percent Dollars Percent 65.9% 66.4% 66.1% 21.0 Apparel Footwear Accessories Total net sales License revenues Connected fitness Total net revenues $3,470.3 1,086.6 416.4 4.973.2 138.8 136.4 $5,267.1 20.6 7.9 94.4% 2.6 2.6 100.0% $3,464.1 1,063.2 422.5 4.949.8 124.8 120.4 $5,193.2 66.7% 20.5 8.1 95.3% 2.4 2.3 100.0% $3,287.1 1,037.8 445.8 4.768.3 116.6 101.9 $4,989.2 9.0 96.3% 2.4 $3,229.1 1,010.7 406.6 $4,646.4 99.8 88.4 $4,833.3 20.7 8.3 95.1% 2.0 2.1 1.8 100.0% 100.0% Note: Percentages do not add to 100% due to not including numbers for "Corporate Other" which relate to currency hedge gains and losses and various "intersegment eliminations" not directly pertinent to UA's net revenues by product category. Source: Company 10-K reports, 2019 and 2018. EXHIBIT 2 Under Armour's Revenues and Operating Income for Its Four Geographic Regions and Its Connected Fitness Business, 2016-2019 A. Net revenues by geographic region (in millions of $) 2019 2018 2017 2016 North America EMEA Asia-Pacific Latin America Connected fitness Total net revenues $3,658.4 621.1 636.3 196.1 136.4 $5,267.1 $3,735.3 591.1 557.4 190.8 120.4 $5,193.2 $3,802.4 470.0 433.6 181.3 89.2 $4,976.6 $4,005.3 330.6 268.6 141.8 80.4 $4,833.3 *Europe-Middle East-Africa. B. Operating income (Loss) by geographic region (in millions of $) 2019 2018 2017 2016 North America EMEA Asia-Pacific Latin America Connected fitness Total operating income $733.4 53.7 97.6 (3.2) 17.1 $236.8 $718.2 30.4 103.5 (16.9) 5.9 $ (25.0) $700.2 26.0 89.3 (14.4) (6.5) $ 27.8 $408.4 11.4 68.3 (33.9) (36.8) $417.5 *Europe-Middle East-Africa. Note: Totals do not add because numbers for the "Corporate Other" non-operating segment were omitted; these relate to currency hedge gains and losses, restructuring charges, and various "intersegment elimin- ations" not directly pertinent to UA's net revenues and operating income by geographic region. Source: Company 10-K reports, 2019 and 2018