Company: UAA
Filing Date: 2025-05-22
Form Type: 10-K
Source: 0001336917-25-000078
Chunk: 44

Company: Under Armour, Inc.
Filing Date: 2025-05-22
Form: 10-K
Item: Item 1
Chunk 44
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 materials used in our apparel products are technically advanced products produced by third parties. The fabric and other raw materials used to manufacture our apparel products are sourced by our contracted manufacturers from a limited number of suppliers pre-approved by us. In Fiscal 2025, our top five suppliers provided approximately 38% of the fabric used in our apparel and accessories. These fabric suppliers have primary locations in Taiwan, China, Malaysia and Vietnam. The fabrics used by our suppliers and manufacturers are primarily synthetic and involve raw materials, including petroleum-based products. We also use cotton as a blended fabric in some of our apparel products, much of which is sourced in the United States. Additionally, our footwear uses raw materials sourced from a diverse base of third-party suppliers, including chemicals, petroleum-based components and natural materials like cotton and rubber. All of these commodities are subject to price fluctuations and supply shortages.

Substantially all of our products are manufactured by unaffiliated manufacturers. In Fiscal 2025, our apparel and accessories products were manufactured by 39 primary contract manufacturers, operating in 18 countries, with approximately 67% of our apparel and accessories products manufactured in Jordan, Vietnam, Cambodia and Indonesia. Of our 39 primary contract manufacturers, ten produced approximately 69% of our apparel and accessories products. In Fiscal 2025, substantially all of our footwear products were manufactured by nine primary contract manufacturers, operating primarily in Vietnam and Indonesia. However, we continue to explore ways to further diversify our sourcing, in light of global trade policy.

All of our manufacturers across all product divisions are evaluated for quality systems, social compliance and financial strength by our internal teams before being selected and on an ongoing basis. Where appropriate, we strive to qualify multiple manufacturers for particular product types and fabrications. We also seek vendors that can perform multiple manufacturing stages, such as procuring raw materials and providing finished products, which helps us control our cost of goods sold. We enter into various agreements with our contract manufacturers, including non-disclosure and confidentiality agreements. We require that manufacturers adhere to our supplier code of conduct regarding manufacturing quality, working conditions and other social, labor and sustainability-related matters. However, we do not have any long-term agreements requiring us to utilize any particular manufacturer, and no manufacturer is required to produce our products for the long term. We have subsidiaries strategically located near our key partners to support our manufacturing, quality assurance and sourcing efforts. 

Inventory Management

Inventory management is important to the financial condition and operating results of our business. We manage our inventory levels based on existing orders,