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2006

2007
2008
Cash flows from operating activities
Net income
38,979
52,558
38,229
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization
9,824
14,622
21,347
Unrealized foreign currency exchange rate (gains) losses
161
-2,567
5,459
Loss on disposal of property and equipment
115 —
15
Stock-based compensation
1,982
4,182
8,466
Gain on bargain purchase of corporate headquarters (excludes transaction costs of $1.9 million)
Deferred income taxes
-6,721
-4,909
-2,818
Changes in reserves and allowances
3,832
4,551
8,711
Changes in operating assets and liabilities:
Accounts receivable
-20,828
-24,222
2,634
Inventories
-26,504
-83,966
-19,497
Prepaid expenses and other assets
-3,997
-2,067
-7,187
Accounts payable
8,203
11,873
16,957
Accrued expenses and other liabilities
10,681
11,825
-5,316
Income taxes payable and receivable
-5,026
3,492
2,516
Net cash provided by operating activities
Cash flows from investing activities
Purchase of property and equipment
Purchase of corporate headquarters and related expenditures
Purchase of intangible assets
Purchase of trust owned life insurance policies

Purchase of long term investment
Purchases of other assets
Change in restricted cash
Net cash used in investing activities


2009
46,785
28,249
-5,222
37
12,910
-5,212
1,623
3,792
32,998
1,870
-4,386
11,656
-6,059

10,701

-14,628

69,516

119,041

-15,115

-33,959

-38,594

-19,845

-125

-600 —

-2,893
-35
21 —
-89,650
-62,860 —



89,650
62,860
-15,115
-34,084
-42,066
-19,880

Cash flows from financing activities
Proceeds from revolving credit facility
40,000 —
Payments on revolving credit facility
-15,000
-25,000
Proceeds from term loan
Proceeds from long term debt
2,119
11,841
13,214
7,649
Payments on long term debt
-2,413
-2,973
-6,490
-7,656
Payments on capital lease obligations
-1,840
-794
-464
-361
Excess tax benefits from stock-based compensation arrangements 11,260
6,892
2,131
5,127
Proceeds from exercise of stock options and other stock issuances 3,544
3,182
1,990
5,128
Payments of debt financing costs
-260 —

-1,354
169 —
Net cash provided by (used in) financing activities
12,579
18,148
35,381
-16,467
Effect of exchange rate changes on cash and cash equivalents
-487
497
-1,377
2,561
Net increase (decrease) in cash and cash equivalents

7,678

-30,067

61,454

85,255

Cash and cash equivalents
Beginning of year

62,977

70,655

40,588

102,042

End of year

70,655

40,588

102,042

187,297

30,502
525

29,561
1,444

40,834
1,273

Non-cash financing and investing activities
Debt assumed in connection with purchase of corporate headquarters
Other supplemental information
Cash paid for income taxes
Cash paid for interest

20,522
531

2010

2011

68,477

96,919

31,321
1,280
44
16,227
-10,337
2,322

36,301
4,027
36
18,063
-3,300
3,620
5,536

-32,320
-65,239
-4,099
16,158
21,330
4,950

-33,923
-114,646
-42,633
17,209
23,442
4,567

50,114

15,218

-30,182

-56,228
-23,164

-11,125
-478

-3,862
-1,153
-5,029

-41,785

-89,436



30,000
-30,000
25,000
5,644
-7,418

5,262
-9,446
-97 —
4,189
10,260
7,335
14,645

-2,324
7,243
1,001

45,807
-75

16,573

-28,486

NCC
-28,278
-28,278

-67,186
-67,186

10,701

-14,628

31,287
72,256
31,287
72,256
0.04314 0.084371

69,516

119,041

16,637
-18,363

13,299
-81,701

50,114

15,218

187,297

203,870

203,870

175,384

38,556

38,773
992

56,940
2,305

6,336
-15,331

92 1.752 530.918 86.587 48.517 2008 725.78 0.979 52.386 533.108 89.355 -2.244 370.94 0.558 38.927 443.798 51.175 85.021 49.05 0.633 108. general and administrative expenses 215.925 -850 -6.09 1.087 20.689 215.044 218.411 1.900 31.919 40.600 158.682 305.83 0.418 35.089 2007 606.671 82.043 36.79 1.178 Income before income taxes Provision for income taxes 59.35 1.76 0.779 354. net Other expense.420 Gross profit Selling.023 413.086 50.959 49.485 69.169 2.650 50.063.948 278. net 56.848 50.273 -2.Net revenues Cost of goods sold 2006 430.507 418.025 327.152 Income from operations Interest expense.258 -1.477 0.265 2.296 2009 2010 856.561 301.344 -511 112.778 76.785 68.442 Net income 38.342 49.34 46.983 49.282 9% 9% 5% 5% 6% Net income available per common share Basic Diluted Weighted average common shares outstanding Basic Diluted profit margin .229 46.

841 -2.332 0.09 76.10 72.767 -3.85 51.548 0.88 1.09 73.570 52.848 29.11 .472.069 162.064 156.2011 1.07 159.684 759.862 59.919 1.923 0.836 550.127 0.926 0.135 0.07 712.943 96.526 7% 7% 52.

2.09 .419368 0.

298 4.681 13.043 324.111 465 Other current liabilities Total current liabilities Long term debt.173 1.989 203.870 102.725 197.041 2.023 187.232 18.127 3.393 396.111 4.992 Total assets 289.427 448.212 689.223 Retained earnings 66.893 602 922 95.012 36.061 10.337 133.342 224.376 117.563 1.663 159.077 20. net Deferred income taxes Other long term assets 244.028 Unearned compensation -103 507 -60 -14 Total stockholders’ equity 214.245 52. 40.250.470 8.000.147 9.432 Total liabilities and stockholders’ equity 289.887 268.326 175.687 3.997 496.188 6.913 183.000 72. 11.458 Commitments and contingencies (see Note 8) Stockholders’ equity Class A Common Stock.418 102.423 73.527 69.948 14.980 110.885 48.966 636.128 156.905 7.034 215.180 1.914 21.673 458 25.613 487.384 134.082 11.292 120.535 15.190 97 Total liabilities 74.481 84.135 5.885 9.021 366.110 13.562 162.782 156.923 7.042 81.000 72.297 79.613 487.275 18.145 2007 2008 2009 2010 2011 40. net 71.470 8.875 5.388 280.302 182.643 12.072 361 2.138 6.607 70.000 4 shares 4 authorized. 13 2011 and132010.655 Accounts receivable.031 Prepaid expenses and other current assets 8.555 545.378 919.210 .438 322.126 Class B Convertible Common Stock. net of current maturities Other long term liabilities Capital lease obligations 71.588 93.908 5.097 399.000 12 shares 12 authorized 12 as of December 13 31.679 55.409 39.485 331.162 10.265 16.435 25.515 166.952 29.867 Inventories 81.2006 Assets Current assets Cash and cash equivalents 70.699 9.368 390.355 19.548 5.329 145.865 100.403 2.870 15.285 6.0003 1/3 par value.164 Accumulated other comprehensive income -463 -182 405 464 2.648 794 55.882 2. net Intangible assets.332 6.011 202.073 555.488 19.842 28.465 149.824 12.210 68.028 614 10.378 919.184 Total current assets Property and equipment.710 40.178 97 1.718 25.188 270.412 282.588 675. $.926 5. 100.310 Deferred income taxes 8.944 Income tax receivables 4.356 148.778 Liabilities and Stockholders’ Equity Current liabilities Revolving credit facility Accounts payable Accrued expenses Current maturities of long term debt — 42.588 675.591 178.0003 1/3 par 4 value. $.368 390.850 76.362 174.555 545.496. 4 issued 4and outstanding 4 as of Decem Additional paid-in capital 148.

307632 .343628 0.402585 0.053.000 0.373493 0.546 263.056 0.374641 106.107887 0.703 506.313 327.382805 0.WC 173.382266 0.838 406.389 226.363068 0.

10% 2011 vs 2010 results 38% 45% 0.005% .Net revenue Operating Inc Op inc % 2010 results 1.2 billion 120-160mm 10.60% 2011 targets 1.5%-11.064 billion 112 mm 10.5% 2011 results 1.473 billion 163mm 11.

00% 6.04 40. Changing cells for each scenario are highlighted in gray.32 s3 25.00% 22.Scenario Summary Current Values: WACC Sensitivity s2 Changing Cells: $B$4 20.00% 20.79% 42.50% 5.00% 6.00% $B$9 6.63 .00% 4.33 Notes: Current Values column represents values of changing cells at time Scenario Summary Report was created.00% 4. 41.50% 4.00% Result Cells: $B$56 36.50% $B$11 4.35 39.

00% 6.00% 6.78 36.50% 4.81 38.00% 20.79% 20.00% 6.35 .s4 s5 s6 s7 25.50% 3.00% 4.00% 25.00% 5.28 45.50% 4.00% 46.

000 0 606.82 20.000 0 .000 5.689.000 -67.053.979.017806637 They have a revolving credit line which is nonrecourse 0.50% 38. Using book value the d/e is 13.000 10.701.30% 3.00% 13.849.000 89.000 59.50% 5 4.000 106.Inputs Beta_equity Growth Rates: UA Industry Sector S&P 500 Economy RF_10yr Excess period Risk Premium Cost of equity Cost of debt Tax rate .00% 13.78% 3.460.000 -14.186.087.000 -28.000 0.00% 15.000 52.043.50% 6.278.000 38.561.00% 7% 11% 8% 37% 56 104.00% 10.57% 2006 2007 430.558.982193363 This is one area which im confused about.760.Cedc 10-Q Profit margin operating argin % NCC % of rev Working Cap % of rev Share price Shares outstanding MV of equity MV of debt D/V E/V WACC FCFF Period Revenue NI CFO Operating income NCC Interest expense After-tax int exp 1.628.

779) 61.43) 41.546.57 total profit .FCInv .000 56.389.083.473.32 (0.00 price x s value 59.779) (0.45) 226.579.221 (44.000 (628.Cap expenditures Working Capital Increase in WC FCFF PV of FCFF Sum of FCFF Enterprise value Value to comm equity Intrinsic value Expected value Projected P/E 173.

411.000 68.900. Using book value the d/e is about 10% 2008 2009 725.335.000 50.363.000 2011 -1 1.816.000 -18.287.418.000 69.000 108.785.000 46.000 69.244.000 2.000 82.041.000 15.800 123.258.841.000 156.767.701.000 31.000 -81.841.289 201.684.477.381.705.220.ne which is nonrecourse used about.927.420 .833 3.000 38.256.000 850000 856.000 2012 0 1.000 2010 -2 1.041.615 6.344.218.472.919.516.919.862.456 130.229.063.000 2.114.000 72.000 2.000 96.000 3.000 119.

9 55 45 8.00 1.00) (0.525.10 810.016.000 99.250) -88.178.000 33.9 55 (0.313.865.276.838.00 1.040) 16.594.263.000 (27.000 327.000 64.000 55.580) 65.353.000 (97.072.43) 53.000 78.9 55 41.000 506.9 55 53.9 55 50.000 36.00) .753.000 662.960 156.960 (88.10 (0.352.969.32 11.056.20 1.57 1.10 310.594.000.78 1.00 3.53 5.703.000.250 1.280 406.767.351.

053.926 7.960 148.927 418.664.509.802.000 2.841.276.420 2016 Residual 4 3.294 3.111 8.415.969.486.666.515.2013 1 2.841.381.432.615.381.381.938 6.664.381.757.739.797.420 2014 2 2.135.994 3.420 2015 3 3.952 178.196.857 185.000 2.791.417 3.763.179.120.841.634 265.028 222.547 155.000 2.420 .215 290.841.051 256.964 242.542 213.446.000 2.544.022 348.934 9.358 3.

90) (190.000.000.489 228.592 (39.414.828 (732.874.791) -440.00) 65.228.144.062.000 794.012 (31.487.409.875) -27.000.000.068) -15.000 953.882.00 1.9 55 55.099.812.677.510 (35.062 158.544.512 65.9 55 52.00 1.10 110.570) -21.000 1.280.713.385.000 1.830 65.794 .00 (1.208) -34.372.552 132.639.65.415 (25.687.565 1.074 190.897.617.

000 -81.381.841.000 106.82 25.00% 13.225.30% 3.000 5.00% 7% 11% 8% 37% 30% 57 104.859.335.684.I think that is alittle to high 5 4.000 3.00% 11.50% 38.220.701.000 156.Inputs Beta_equity Growth Rates: UA Industry Sector S&P 500 Economy RF_10yr Excess period Risk Premium Cost of equity Cost of debt Tax rate .000 0.Cedc 10-Q Profit margin operating margin % NCC % of rev Working Cap % of rev Share price Shares outstanding MV of equity MV of debt D/V E/V WACC FCFF Period Revenue NI CFO Operating income NCC Interest expense After-tax int exp 1.000 15.840.5% .850 135.195.017499707 They have a revolving credit line which is nonrecourse 0.00% He had 6. Using book value the d/e is 11.12% 2011 -1 1.683 210.919.053.641 6.472.00% 4.28% 3.000 96.00% 10.460.000 2.00% 15.954.841.862.420 .982500293 This is one area which im confused about.000 128.218.855.000 2012 0 1.833 3.

000 657.63 36.000 (240.353.096 44.697) -79.155.102.800 151.Cap expenditures Working Capital Increase in WC FCFF PV of FCFF Sum of FCFF Enterprise value Value to comm equity Intrinsic value Projected P/E 159.816.056.18 28.FCInv .753.239.580) 4.078.662.239.000.492.000.697 .000 506.94 65.096 4.800 (79.096 4.872.768.000 99.

902 314.343.229 262.335.723.841.595.417 3.494.194 9.000 2.009.420 .301.243 323.068.which is nonrecourse ed about.051 6.000 2.432.112.433 10.381.537 513.923 3.420 2017 5 5.994 3.015 615.000 2.000 2.895.395 260.389 410.276.358 3.955 8. Using book value the d/e is about 10% 25% Excess Growth Period 2013 1 2.420 2015 3 3.922 251.841.420 2016 4 4.246.841.679.074.477.419.203.874 328.000 2.841.381.841.381.129.875.876.596.381.044.519.393.092 387.599.564 7.969.516 209.750 161.938 201.274.381.420 20% 2014 2 2.666.883 377.294 3.813 168.782.

748) -61.379.625 1.721 (29.077.747.683.398.236 75.906 1.518.700.201.601.323 71.025.020.990.327 336.708 215.789.366 (102.872.245.149.68.500 1.717) -91.958.166 204.486.498.588) -17.671) -58.177 (82.074.997 .302 2.815.721 (89.471.592.041 79.000 862.662.993) -59.346.542 (75.071 82.747.885 269.738.606 336.007.250.

371.841.421 3.000 2.271 708.822.Slowed Growth 2018 6 6.722 12.841.155 818.099.398 779.108 13.15% 10% Second Period .561.063.279.581.747 3.107.50% Perpetuity 2020 Residual 8 7.000 2.420 2019 7 6.302 477.163.439.956 445.146.381.315 3.424.381.748 11.021.767 501.309.365 434.381.202.841.000 2.734 515.346.420 .651 489.908.224.420 5% 3.

570.217 2.211 126.472.559.276 303.072.106. we keep profit margin 4.768 96.370 For the model.109 9.87.363 80.740.795.287.683.288 .461.204 232.527 2.964 127.525 30.573.604 2.581.555.572.949 57.760 293.928 168.355.034.209.710.323.531.295 91.785.915.

.

model. we keep profit margin at 7% thorugh 2nd period and residual.this is something I should look at-it is most likely sick optomistic .

.

ost likely sick optomistic .

982500293 This is one area which im confused about.381.954.840.000 15.225.684.28% 3.00% 7% 11% 8% 37% 30% 57 104.30% 3.460.850 135.701.420 .919.000 5.855.862.833 3.000 3.841.683 210.335.00% 13.641 6.00% 15.000 -81.000 0.220.859.000 96.000 106.Inputs Beta_equity Growth Rates: UA Industry Sector S&P 500 Economy RF_10yr Excess period Risk Premium Cost of equity Cost of debt Tax rate .000 156.Cedc 10-Q Profit margin operating margin % NCC % of rev Working Cap % of rev Share price Shares outstanding MV of equity MV of debt D/V E/V WACC FCFF Period Revenue NI CFO Operating income NCC Interest expense After-tax int exp 1.472.000 2012 0 1.017499707 They have a revolving credit line which is nonrecourse 0.841.50% 38.00% 9.16% 2011 -1 1.82 25. Using book value the d/e is 9.053.00% 5 4.00% 10.218.000 2.000 128.195.50% 2.

000.Cap expenditures Working Capital Increase in WC FCFF PV of FCFF Sum of FCFF Enterprise value Value to comm equity Intrinsic value 16.19 1.753.998.54 47.697 .580) 4.79 32.000 506.98 28.41% 65.01 28.000 657.96% 25.816.93 1.90 37.053.056.54 35.239.519 44.00% Analyst Projections 0.872.697) -79.742.353.93 1.000 (97.519 4.519 4.239.800 (79.26% 29.39 Ours EPS 2011 EPS 2012 EPS 2013 Projected P/E Forward P/E Implied growth 2012 Implied growth 2013 0.23 1.945.000 99.335.000.636.FCInv .800 151.

500.050 2.679.874 328.419.516 209.274.015 615.343.599.723.092 387.955 8.033.044.000 2.which is nonrecourse ed about.875.393.335.902 314.595.068.750 161.358 4.666.922 251. Using book value the d/e is about 10% 25% Excess Growth Period 2013 1 2.994 4.395 260.813 168.500.477.033.895.033.596.782.294 4.876.050 2.432.491 2016 4 4.841.420 20% 2014 2 2.276.537 513.969.883 377.491 .491 2015 3 3.417 3.564 7.500.491 2017 5 5.923 4.246.229 262.074.203.500.050 2.519.129.938 201.389 410.194 9.033.301.050 2.433 10.381.243 323.051 6.009.112.494.

166 204.465 9% 42.94 79.327 336.81 .39 20% 22% 25% 28.509.70 35.518.738.79 37.020.86 43.250.08 43.482.177 (82.683.398.077.958.67 35.85 41.449 12% 34.677) -63.379.906 1.366 (102.025.68.91 82.990.721 (29.721 (89.486.302 2.071 44.88 42.074.747.592.41% Growth Rate Average 75.67 44.542 (75.87 36.26% 29.007.167 71.468.517) -19.346.94 39.662.747.885 269.600) -62.922) -63.606 336.75 34.958.625 1.545 WACC 10% 39.708 215.201.072.500 1.92 40.40 40.025.030.670.245.717) -93.000 862.

155 818.050 2.734 515.561.108 13.315 4.099.371.439.491 5% 3.302 477.Slowed Growth 2018 6 6.050 2.163.581.500.500.822.424.063.271 708.033.398 779.107.747 4.500.146.309.279.748 11.651 489.722 12.767 501.365 434.421 4.050 2.021.346.15% 10% Second Period .491 .956 445.202.50% Perpetuity 2020 Residual 8 7.908.033.033.491 2019 7 6.224.

488 4.204 232.323.760 293.034.915.086 96.555.461.683.559.596 34.282 145.527 2.15 32.21 31.179.391.106.434 91.072.47 33.691.591.494 8.721.710.692.795.217 2.58% 31.309.949 57.077 13.256 .964 127.471.33 91.107.163.928 168.604 2.355.43 32.276 303.87.

.

1.1% 1.1% 3.8% .5% 3.5% 2.0% 2.

.

4% 1.5% 1.1.0% .3% 1.3% 2.

Nike comparison sales % growth net income %growth % of sales 1977 28711 1978 71001 147% 1979 149830 111% 1980 269775 80% 1981 457742 70% 1982 693582 52% 1983 867212 25% 0.807677 1522 3856 153% 5% 9723 152% 6% 12505 29% 5% 25955 108% 6% 49036 89% 7% 57004 16% 7% 10166 4% 16172 59% 4% 39731 -100% #DIV/0! 0% 5% 29624 123% 11% 74687 152% 16% 5% ppe net % growth %of sales working capital % growth % of sales 2645 9% 5351 102% 8% 13266 148% 9% 92% 112170 50% 16% 209871 87% 24% .

1984 919806 6% 1985 956371 4% 1986 1069222 12% 1987 877257 -18% 1988 1203440 37% 1989 1710803 42% 1990 2235244 31% 1991 3003000 34% 1992 3405000 13% 43% 40690 -29% 4% 10270 -75% 1% 59211 477% 6% 35879 -39% 4% 101695 183% 8% 167047 64% 10% 242958 45% 11% 287000 18% 10% 329000 15% 10% 55915 41% 6% 50748 -9% 5% 39834 -22% 4% 48480 22% 6% 57703 19% 5% 89900 56% 5% 159000 77% 7% 292000 84% 10% 346000 18% 10% 234247 12% 25% 217849 -7% 23% 278784 28% 26% 325200 17% 37% 298816 -8% 25% 422000 41% 25% 564000 34% 25% 666000 18% 22% 967000 45% 28% 13% .

1993 3930000 15% 1994 3789000 -4% 1995 4760000 26% 1996 6470000 36% 1997 9186000 42% 1998 9553000 4% 1999 8776000 -8% 2000 8995000 2% 2001 9488000 5% 365000 11% 9% 298000 -18% 8% 399000 34% 8% 553000 39% 9% 795000 44% 9% 399000 -50% 4% 451000 13% 5% 579000 28% 6% 589000 2% 6% 378000 9% 10% 406000 7% 11% 554000 36% 12% 642000 16% 10% 922000 44% 10% 1153000 25% 12% 1265000 10% 14% 1583000 25% 18% 1618000 2% 17% 1165000 20% 30% 1209000 4% 32% 938000 -22% 20% 1246000 33% 19% 1964000 58% 21% 1829000 -7% 19% 1818000 -1% 21% 1456000 -20% 16% 1839000 26% 19% .

344121 .2002 2003 2004 2005 2006 2007 2008 2009 2010 9893000 10697000 12253000 13739000 14954000 16325000 18627000 19176000 19014000 4% 8% 15% 12% 9% 9% 14% 3% -1% 663000 13% 7% 474000 -29% 4% 945000 99% 8% 1211000 28% 9% 1392000 15% 9% 1491000 7% 9% 1883000 26% 10% 1487000 -21% 8% 1907000 28% 10% 1614000 0% 16% 1620000 0% 15% 1586000 -2% 13% 1605000 1% 12% 1657000 3% 11% 1678000 1% 10% 1891000 13% 10% 1957000 3% 10% 1931000 -1% 10% 2321000 26% 23% 2767000 19% 26% 3503000 27% 29% 4352000 24% 32% 4736000 9% 32% 5492000 16% 34% 5518000 0% 30% 6457000 17% 34% 7595000 18% 40% 0.

2011 20862000 10% Average 25% 2133000 12% 10% 7.3% 2115000 10% 10% 9% 7339000 -3% 35% 24% 40% if you exclude the first six years of growth of 92% growth. nike has averaged 13 .

nike has averaged 13%.92% growth. .

In this model.com 3.marketresearch.025 0. Yr 1-5 = Expected revenues in year 10 = Expected compounded growth rate: Yr 6-10 = Expected compounded growth rate: Yr 1-10: $ $ 1. and triple market share in 10 years 2.087 0.064 0. it states that the US Sports apparel market is growing at . UA is projected to double market share in five years. In the right link.319.096 $ 3.472.684.111583565 0.14692292 $ 2 Take a backing out approach what % of market share will UA need to get the projected Used the data of sports apparel (use UA and its competitors) Sports apparel industry Market Share 3 Conclusion 1.000. In this model.930 0.757.800.substantially optomistic .8%.US maket share approach 1 Damadarian Approach Inputs (2011) Enter revenues in current year = Enter size of overall market in current year = Enter expected growth rate in overall market = Enter expected market share in 5 years = Enter expected market share in 10 years = Output Expected revenues in year 5 = Expected compounded growth rate.5% market growth rate was assumed.200.000 47.417.18338578 5. http://www.000 0. a 2.

market share substantially since it started in the late .

6% rs.680.8%.082.700.000 $ should we weight this to apparel? Nike UA $ 24.000 $ (1.marketresearch.000 $ 1.000.500. and triple market share in 10 years owing at .1% 3.299.913) ADDYY COLM 1.what we have modeled Difference 4.000.000.000. http://www.8% (1.000.000 3.071) 7.com/AM-Mindpower-Solutions-v3771/Athletic-Apparel-Footwear-Outlook-Evolving-6846675/ ially optomistic .000.100.000.242.500.000 $ 50.2% 38.000.000 $ 18.

UA has increased in market share substantially since it started in the late 90's How will UA continue growing market share against strong incumbents The US & Global Industry analysis models show what UA needs to sustain its equity .

8% Nike: has a selection of cool to warm compression at price point of $30 .000 $ 1.000.1% 2.000.000 $ 47.LULU SKINs(private) Total $ 1.000.000.claims that US sports apparel industry is growing at .$65 UA : Multiple compression gear offerings from $30 $70 .200.000 2.1% rel-Footwear-Outlook-Evolving-6846675/ .000.

$65 Addidas: $55 Reebok: compression shirts starting at $20.$70 point of $30 .98 Sports Apparel Market US = $47Bil Many low price point producers: $10 and up Global = $122 bil competitors have stronger global distribution No patents on materials In what ways other than its brand can UA differentiate? UA 2015 & 2020 market share established globa .

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Prices range from $70 .Addidas: $55-$65 Skins: a private company that is established globally.$250 .

259428838 2011 1.036213541 $ 3.684. Yr 1-5 = Expected revenues in year 10 = Expected compounded growth rate: Yr 6-10 = Expected compounded growth rate: Yr 1-10: 2 Understanding UA global athlethic apparel market share 1.com/ci02121/Sport-Clothing-and-Accessories. UA current global market share is 1.html .2% Given UA's global psotion relative to competitors without any competitive advantage.22E+11 0.128 0.447. In this model.reportlinker.472. it is difficult to see there m http://www.119174868 -0. I project them doubling market share in five years. It should first be noted that in our fcff model. UA needs to reach the goals by 2020 (8 years).185456702 6053796195 0.032 0.Global Market share approach 1 Damadarian Approach Inputs (2011) Enter revenues in current year = Enter size of overall market in current year = Enter expected growth rate in overall market = Enter expected market share in 5 years = Enter expected market share in 10 years = Output Expected revenues in year 5 = Expected compounded growth rate. and tripling market .2%.768.000 1. they 2.reports that sports apparel industry 3 Conclusions 1.024142361 0.

231.should perform sensitivity on expected growth rate of the market-also a scenario analysis what we have modeled Difference 4500000000 $ (1.052.203. e in five years.046. it is difficult to see there market share increasing greatly eports that sports apparel industry will be 126bil by 2015 y 2020 (8 years).805) antage. In this model. and tripling market in 10 years .872) 7100000000 $ (1. they are given 10 years to get there.

919.4% 14.3% 1999 17.578 $ 1998 16.092 $ 3.7% .679.2008 American Apparel & Footware Association stats US Apparel imports (Page 21) (In Number of Units) 2002 Other man-made fiber apparel Kg.775 9.610.203 $ 102. page 13) (In millions of Garments) $ % growth 1997 15.654 9. % growth 2003 2004 $ 81.6% Page 13 Profile of US Apparel consumption (Wholesale market.102 $ 89.

842.193 $ 1.2005 2006 2007 $ 121.231 -0.990 $ 4.023 $ 130.3% 2005 20.967 $ -3.052 $ 0.406.9% 2002 18.9% 2001 17.2% $ 2000 18.629.3% 2008 average 130.1% .3% 8.9% 4.271.4% 2004 19.944 $ 125.690 $ 5.7% 2.894 $ 18.397 7.2% 2003 18.

507.80 -3.It would be nice to know the past 3 years given the downtrend $ 2006 20.1% .7% 2008 19.4% 2007 20.481 0.1% average 2.137.60 -1.