Under Armour Q2 Sales Jump 63%; Ups Full-Year Guidance

Under Armour, Inc. second quarter net revenues increased 63.3% to $80.0 million compared to net revenues of $49.0 million in the second quarter of 2005. Apparel revenues for Men’s, Women’s, and Youth increased 31.0% to $58.0 million. Footwear revenues, which consist of football cleats and slides, were recorded for the first time in the second quarter of 2006 and totaled $15.6 million.

Second quarter net income increased 32.5% to $2.4 million compared to $1.8 million in the same period of 2005. Diluted earnings per share was five cents, on weighted average common shares outstanding of 49.4 million compared to three cents per share on weighted average common shares outstanding of 37.5 million in the second quarter of the prior year.

“We accomplished the goals we set for the quarter and in the process exceeded our own expectations,” stated Kevin A. Plank, Chairman, CEO, and President of Under Armour, Inc. “We continued to drive revenue growth in our apparel business while building the foundation for a broader revenue base in international markets and in new product categories, such as footwear. We achieved these strategic growth goals while also accomplishing a key operational objective for the quarter, the implementation of SAP. This implementation provides us with the infrastructure needed to support our growing business.”

Mr. Plank added, “The highlight of the quarter had to be the launch of football cleats. Our Click Clack(TM) marketing campaign created an extraordinary amount of momentum for the brand while the performance of the product has further validated our authenticity on the field. We believe the door is now open for us to apply Under Armour technology to additional athletic footwear categories.”

Apparel revenues grew 31.0% for the quarter due to continued strength in the Men’s and Women’s business. Growth in Men’s was driven by the golf, training, running, and compression categories as well as the continued expansion of the brand within existing retail doors. Revenue growth in the Women’s fitness, training, and compression categories increased as the brand enhanced its presence on the retail floor and continued to focus marketing efforts on the female athlete.

Gross margin was 47.8% compared to 50.1% in last year’s second quarter. As expected, gross margin was impacted by several factors, primarily the introduction of cleated footwear, which has margins lower than current apparel margins.

Selling, general and administrative expenses were 43.6% of net revenues in the second quarter of 2006 compared to 42.7% in the same period of the prior year. The Company had previously stated its commitment to a marketing budget of 10% to 12% of net revenues for the full year but indicated that it would undertake incremental marketing spend in the second quarter to support its footwear launch. Marketing expense for the second quarter was 13.2% of net revenues compared to 12.8% in the same period last year.

Increasing Outlook for 2006

Due to the strength of the second quarter, ongoing momentum in its apparel business, and favorable business trends, Under Armour is increasing its outlook for 2006.

The Company now expects annual net revenues in the range of $400 million to $410 million, a 42% to 46% increase over 2005, and annual net income in the range of $34 million to $35 million, which represents a 72% to 78% increase from 2005. The Company continues to expect fully diluted weighted average shares outstanding of approximately 50 million for 2006.

At the end of Q1, Under Armour expected net revenue in the range of $380 million to $390 million, a 35% to 39% increase from 2005, and net income in the range of $31 million to $32 million, which represents a 57% to 62% increase from 2005.

                              Under Armour, Inc.
                  Quarter and Six Months Ended June 30, 2006
                (Amounts in thousands, except per share data)


                 CONDENSED CONSOLIDATED STATEMENTS OF INCOME

                            Quarter                  Quarter
                             Ended      % of Net      Ended       % of Net
                            6/30/06     Revenues     6/30/05      Revenues

    Net revenues           $79,965       100.0%      $48,957       100.0%
    Cost of goods sold      41,758        52.2%       24,406        49.9%
      Gross profit          38,207        47.8%       24,551        50.1%

    Operating expense
    Selling, general and
     administrative
     expenses               34,838        43.6%       20,906        42.7%
    Income from operations   3,369         4.2%        3,645         7.4%
    Other income (expense)
    Interest income
     (expense), net            383         0.5%        (699)       (1.4%)
    Income before income
     taxes                   3,752         4.7%        2,946         6.0%
    Provision for income
     taxes                   1,328         1.7%        1,116         2.3%

      Net income             2,424         3.0%        1,830         3.7%

    Accretion of and
     cumulative preferred
     dividends on
     Series A Preferred
     Stock                      --         0.0%          599         1.2%

    Net income available to
    common shareholders     $2,424         3.0%       $1,231         2.5%

    Basic earnings per
     share                  $ 0.05                    $ 0.03

    Diluted earnings
     per share              $ 0.05                    $ 0.03

    Average basic shares    46,894                    35,620
    Average diluted shares  49,436                    37,485