Come on, it's okay. Give it a little round of applause. Good morning, everyone. I am Kevin Plank, Chairman and CEO of Under Armour. It is my pleasure to welcome you today to our house. You get a little sense and feeling of what we call our brand voice, which certainly gives you the sense and the energy of what is Under Armour, which is a story that we're going to tell for you today, but probably most importantly, it's a lot easier when we let you feel it. You're going to have a lot of that today as well. We had a great time last night. I hope most of you had a chance to get out there, and if you didn't make it, there are gift cards in your bags if you need them. Like you need them. Visit the store today before you leave.
I can tell you it's a comprehensive part of the story that rounds everything out for us. The height and focus that you see when you walk into our store, you can tell the elements that are important to us. Things like women's and things like footwear make it a unique experience for Under Armour that you've probably never ever seen before. That's not surprising to us. Some of the comments that I heard last night and just talking to a few of you were, "Wow, Under Armour really looks good" in kind of this exasperated, surprised look. It's like, well, how'd you think it was going to look? The color was impressive. The breadth of the offering you've never seen before.
All those things are frankly part of the story that we want to convey to our retail partners as much as anybody, to tell them how good we can look in their stores when they give us the opportunity. All the way down to things like, "This is not how I pictured Baltimore." Today is one of those things that we wanted to do, is we wanted to blow your mind. Hopefully, we've started that and we're going to finish that as the day progresses. Again, to all of you, welcome to our house, and as you can see, we are building something certainly special and we are definitely not through. This morning, show of hands, yoga or running, who was there? Omar, yeah, good. Yoga, that's it. All right.
You're going to have to take our word for lots of these things then if that's all. We'll go at them. Seven years as a public company. We've obviously got many friends in the room who we've gotten to know over the years. We also have some friends in the room that don't know they're friends of ours yet, that we're going to hopefully try to change that today. With that today, you're going to meet our management team and see some of the Directors in our company that you'll interact throughout the day as well. Several that we have here, I saw Tony Deering, and Tony, raise your hand maybe if you're around. Buzzy Krongard, our Lead Director, Tom Sippel. On the other side, Doug Coltharp as well.
Our newest and latest and, I'll say, greatest addition to the board is Brenda Barnes, who has been advising me on some of our marketing initiatives as well. Brenda, welcome to all of you also. We're going to be presenting from the stage here, and at the breaks, you're going to be encouraged to move around the building. What you see is we were in this facility the last time you were here, and basically this is the semblance that we have of our product. We don't do trade shows too often. We don't play away games too often. We like to bring our accounts here and let them see and feel the breadth of our brand.
What we ask you to do is work, engage with our team, of course, we remind you to be aware of what was on the screen earlier, our forward-looking statements. Take it easy on them with the Q&A and keep the questions all up. Finally, don't be afraid to clap. We've got really tight information for you. People are putting a lot into it. If you see something, let it go and feel it. Enjoy the day. Put your BlackBerries away. You'll have plenty of time for those things later. Today, if you can focus, we'd greatly appreciate it. Again, we've got a lot of information to cover today, let's get started. As you could hear from the branding that we have all over, it's this word Armored for Growth.
Today we want to convince you why we believe that we are so well-armored for growth for our company. I can say that with complete confidence because as a founder of this company, I know there's never been a time in our history where the brand and this team has been more prepared to grow. The opportunities and the challenges that we have are certainly large and more complex than they've been in the past, our team has never been more prepared and as you're going to see today, our pipeline of innovation has never been better stocked. We've got tremendous runway and established businesses like men's and huge upside in women's and youth, as you'll see that today as Henry takes you through that with our team. We're just getting started in footwear with significant market share opportunities in virtually every category.
We have great opportunities to reach new athletes through expanding our distribution all over the world, right here at home in the U.S. as well. We are aligned behind a strategy to establish Under Armour as a truly global athletic brand. Most importantly, we have the team. The team. We have the team in place that understands both the opportunities and the responsibilities of expanding the base that we've built to date. As I said, we've got a lot that we want to show you today. Let me quickly walk you through the agenda that we're going to go through and how the day will progress.
First up is going to be Kip Fulks, right following myself, our Chief Operating Officer and my original partner at Under Armour, who dates back to 1997 with me all the way to Grandma's basement. Kip is going to walk you through how our design and innovation process drives our growth before coming back on stage to introduce our footwear team. A lot of that through the day, you'll understand and see why Kip is the one that we have from our company who's running these functions of our business. After that, you're going to hear from Henry Stafford and our apparel team, including Glenn Silbert, our Vice President of Men's and Youth, Gwen Liaudreau, our Vice President of Women's, and Leanne Fremar, our latest addition to our women's team, who joined us late last year from Theory as Senior Vice President and Executive Creative Director for Women's.
Kip's going to come back up on stage and kick off the discussion around footwear, which I think a lot of you after last night in particular are pretty excited about. The team's going to show you something we're really excited about on the technology front with a new product that we're going to be launching this fall and into next year in a big way. We'll break for lunch a little before noon, where again, we encourage you to get around, see the different rooms here in the Under Armour studios as we have them set out. Each one has a different story for you.
We want to reassemble back here at 1:00 P.M. sharp when Charlie Maurath, our Head of International, is going to talk to you about the global opportunities we have. Our plans to attack the balance of the world, more importantly, the cadence at which we will do that. After that, it's going to be our direct consumer team with Henry showcasing for you the outlet and specialty discussion, Chip Adams on e-commerce. Brad Dickerson, Baltimore, if not America, if not the world's favorite CEO, is going to take you through what it's all going to mean in terms of our financials. If we haven't addressed everything by that time, we'll then have a Q&A session up here with Brad and Henry and Kip and myself to answer anything that you might have. Without it, let's get going.
We held our last Investor Day in June of 2011. What's changed from that day? For one thing, we get to introduce ourselves as being from Baltimore and the home of the Super Bowl champion, Ravens, of course. We're very proud of that victory and very happy for the team who was actually at the White House today. We've also changed our appearance a bit. You saw it last night at our Brand House and seeing the brand the way you've never seen it before. If you get a chance to walk around afterwards, coming in, you saw things like our new field out on the promenade. You saw things we have, like the old cafe that used to be there that's soon about to be replaced by our new welcome center that will be up by the end of this year.
You've seen things where we moved in before, this building you're sitting in was an old warehouse just four or five years ago that's been renovated and turned into more than 200,000 square feet of active use for our company, more importantly, with active energy inside. In fact, if you were here four or five years ago, you would have seen things where it was an old dilapidated warehouse, or it was a freight train running through the center, it was weeds outside or chain link fence or barbed wire. It's been replaced with this new warehouse, with 200,000 square feet of activity. We can't do anything about the freight train that runs through the center of campus, we actually think it's pretty cool. Things like the weeds have been replaced with trees the chain link fence has come down.
That's built something we're very proud of. One of the cool things we have on the board is actually something that inspired us when we were over in London last summer, when they had this picture of the royal family out on the harbor and took this whole side of this building. We have these One of our partners is a tanking company in Westway, we asked them if we could do something to make a little more appropriate for Baltimore and for Under Armour and for our city. They have their royal family and we have ours, which looks more like this. We're putting Ray Lewis, Michael Phelps, and Cal Ripken up there, then you can see it in the evening as well. Something very cool for us.
Also since our last Investor Day, we've delivered on the promise, the promise that we made to you. We said that we would double our revenues from 2010 to 2013. In fact, we came in above that with 2000 revenues reaching $1.8 billion, our forecast for 2013 taking us beyond the 2x milestone. While that revenue growth was strong, we believe it merely represents our foundation, the building blocks of what we see as a much larger and more diverse global brand. What's changed most in that time is, frankly, our reach, our ability to speak to new consumers and bring them into our brand because we continued to deliver on that promise. Let's begin with the consumer. As I said, Under Armour started with a promise. What was it? The promise simply was to make all athletes better.
The goal was to take that vision and become the global leader in performance apparel, initially. It started with a single innovation, a moisture-wicking compression shirt that not only helped make all athletes better, also helped raise expectations in the world of performance athletic apparel. It didn't exist before us. We created a new category raised expectations for what consumers should expect from their athletic apparel. From that single innovation, we built a company. A company that was founded on innovation, one where the promise of what's next ignites our passion. We also grew from a brand who only made products for the athletes to wear while playing their game to one who understood that the power of the relationship we were building with the athletes transcended the playing field.
A brand that was given permission to come off the field and into the other parts of their closet. A brand that brought the language of innovation, not the kind you read about in futurist newsletters, but the kind that does practical things like keeping you warmer, cooler and drier, helping athletes today. This is the foundation that we've built. A consumer who trusts us to ensure that performance is built into everything that we make. From that first 39 compression shirt to the latest innovations you're going to see this morning, it's our universal guarantee of performance. It's this guarantee that's powered us to the $2 billion-plus in revenues that we will hit in 2013, more than 2 times what we did in 2010. Growth for us is not a new concept. We've been the definition of a growth company since you first heard about us.
Even before we sold our first share to the public, we've been about growth. For Under Armour, it's always been about what's next, and that's evident in how we've extended our reach to new consumers over time. From a financial perspective, our growth story has delivered for our shareholders. Since our IPO in 2005 through 2012, we've grown at a 31% CAGR in both top and bottom line. 31%. 2005 was also the 10th anniversary of our brand's existence, and revenues were at $281 million. 5 years later, in 2010, we surpassed the billion-dollar mark. This year, we are blowing past the $2 billion mark. What we hope you take away from today's presentation is that the multiple engines that have fueled our growth to date are not only intact, but are all positioned to continue to grow and continue to deliver for this brand.
Let's talk to you about our growth drivers for a minute. Let me tell you the story of exactly how we expect to grow. On a roadshow back in November 2005, we spoke about these 5 growth drivers that we've had. Frankly, as you can tell, our message has remained very consistent. Let's look back at what it looked like in 2005. We talked about men's apparel, a nice solid business for us, and frankly, where we were founded. Women's apparel. 4 years in, we were really just getting started in the business. Footwear. November 2005, we had yet to sell our first shoe. It wasn't until June of 2006 when we were released to the market with football cleats. International in 2005. We had a little bit in Japan and Canada, but not much elsewhere.
Direct consumer consisted of 4 outlet stores and a small web business for us. That was a different company. 7-plus years of executing on this strategy that we promised you we would attack. 7-plus years of investment. 7-plus years of evolution and innovation, constantly adapting to a changing consumer, a changing marketplace, and huge shifts in how consumers shop and get their information about the brands that they love. 7-plus years where investors have trusted us to adapt to change as we grew revenues nearly 8 times since our IPO. Fast-forward to 2013, and the simple story is that our growth drivers have not changed since the time of that IPO in 2005. Men's apparel, women's apparel, footwear, international, and direct consumer. The evolution certainly has.
Those growth drivers have helped us over-deliver on the 20%-25% top and bottom line growth that we've targeted since our IPO. They've accounted for nearly 85% of our growth since the beginning of 2011, and will continue to drive our growth for the foreseeable future. We know that by now, some of you expected us to be hitting our heads on the ceiling of our existing distribution or maxing out on the ability to grow in core categories like men's. As the founder of this growth company, I believe our ability to over-deliver against these five drivers underscores the fact that even 7+ years in as a public company, we are still just scratching the surface of the potential for our brand. We believe that, and you'll see that today. I can say that confidently because of what you're going to see today.
On the whiteboards in my office are a number of phrases that I've either said or heard over the years. A couple of them are the ones that I heard, but now I tell people that I said. One that's been on those whiteboards from the beginning says that great brands are like great stories. With each chapter making sense to the one you just read and the one you're about to read. Today, you'll see the next chapter of Under Armour. A critical piece of our story, where we will reach out to a new consumer in new geographies with new strategies, new innovation, and new ways of selling and speaking to them. While much will feel new, our book, though, will remain a very simple story of growth. Let's frame out what our growth drivers look like. Beginning first, of course, with apparel.
Apparel is our lifeblood. It's the core of what we do. The reason millions of consumers have come to trust the Under Armour logo and our promise of performance. As you'll see over the course of this morning, when we innovate, we win. Half a billion. That's about what we did in our first year as a public company, frankly, in our second year as a public company. More importantly, we're going to do it in a category that we declared was the enemy on our roadshow. Any of you who were there more than seven years ago, I showed up with this soaking wet cotton T-shirt in a bag, and I slammed it on a table, and I declared, "This is what athletes are wearing on their body. There must be a better solution." That's a pretty good thud. That's a size XL, standard 100% cotton gray T-shirt.
Athletes don't wear that anymore because our brand has changed that cadence. You're going to see how our next platforms are being built around technologies like ColdGear Infrared. Platforms that we purposely start small, but have proven we can grow into half-billion dollar businesses as well. This relentless flow of true innovation is a primary reason we believe there is significant runway for our men's business in both our existing and frankly, in new distribution. Henry's also going to talk about the broader reach of our brand and how it's evolved in the past two years from both a product and distribution perspective. What we need to do is to continue expanding our reach to new consumers. Some of those new consumers are women, and hopefully, we attracted a few last night when they saw the breadth of our line in our Harbor East store.
Women's, for us, has been a powerful driver of our growth for Under Armour. Moving from $54 million in 2005 to where we see it approaching, again, the half-billion dollar mark this year. It frankly is our biggest product opportunity and one in which we've never been better poised, frankly, to take advantage. We've built a very large women's business and have done so through authenticity and focused distribution. We know there's a consumer out there that we've not been addressing, and today you're going to hear from Leanne Fremar, who joined us last year from Theory, and Gwen Liaudreau , who's been driving our growth in women since 2009, which has been spectacular.
They're going to take you through where we are in women's and give you just a sample of some of the things we're going to do to bring the Under Armour brand to a new women's consumer. We've heard you. We've been listening, and we're going to take action. On the youth side, our opportunity is abundant. This is a selfish picture. This was my nine-year-old boy at his 10-year-old birthday party, and this is nine of his friends who showed up for a game of flag football for their birthday party on Saturday. Half Alter Ego Superman, half Alter Ego Batman. As you'll hear from Henry and Glenn, the kids, they enjoy the Under Armour brand, let alone we put superhero figures on top of it, too. This last piece of our apparel puzzle is youth, as we refer to it internally as UA Next.
We do that because we fully understand the power of our brand and our ability to engage a young athlete early on and keep them as an Under Armour brand loyalist. There's a generation that's grown up with our brand, and our focus is on ensuring that we stay true to our core. Today's youth consumer is incredibly engaged. We've heard a lot from you, particularly at the Brand House last night, as I mentioned in my opening remarks, about how great our footwear looked. That's exciting to us. Frankly, our reaction to that is you haven't seen anything yet. We are truly just getting started with this opportunity. We've made tremendous progress since our first steps into footwear back in 2006.
When we look at the landscape in 2013, I think the most important takeaway is that we've learned what it means to truly be a footwear company, not an apparel brand who's making shoes. A totally integrated footwear company. We've changed the voicemail. "Under Armour Performance Apparel, how may I help you?" We've changed the signs and the welcome signs. "Welcome to Under Armour Performance Apparel." It is, "Welcome to Under Armour Performance." Whether it's apparel, whether it's footwear, whether it's accessories, we service all those needs for the consumer. One that's focused on building the platform for global growth in footwear. It's a footwear organization that's integrated with our apparel team, not just in creating head-to-toe looks for our consumer, but in understanding the importance of fit and how we are making that part of our DNA in footwear as well.
Most importantly, a footwear organization that's focused on delivering growth across all categories, genders, and geographies. We've delivered a 44% CAGR in footwear since 2006. Again, that just feels like the tip of the iceberg for what the brand should look like. We'll deliver that growth, and it will come by being great within every category where we compete. I can promise you, we expect to compete in every category. Growth that will be driven by being an authentic performance brand and how we take that brand equity to a broader range of consumers over time. That means taking it to consumers outside of our home country, and that means truly becoming global. I spoke earlier of how we look at our brand story as chapters in a book.
International will be our first chapter that will not be written solely in English, but in Spanish, Mandarin, Portuguese, and many of the other languages spoken around the world. International is the biggest opportunity for the Under Armour brand, and because we believe we're now in a position where our strategy is truly aligned with the size of that opportunity. A critical part of that strategy is getting ourselves on the ground as local brands in most of these key markets. Over the next year alone, we'll be opening 10 more offices, and by the end of 2013, we'll actually have more offices outside the United States than here in the States. That is no longer a North American apparel company. Our office in Panama, where our Latin America operations will be based, opened last month.
We'll use that base for entry into key markets in the other part of the southern hemisphere, and you'll hear more about that this afternoon. We're also opening in Manchester in the U.K., in Australia, and Germany later this year. After lunch, you're going to hear from Charlie Maurath, who joined Under Armour last fall from Adidas to drive our international business. Like many of our executive team that you'll hear from today, Charlie came to Under Armour for the opportunity to build the next great global athletic brand. He will talk to you about how we will get the profitable growth in the short term while ensuring we are investing truly for the long term. He's going to show you how we can invest in sports marketing assets around the globe and have them do more for Under Armour than they can for our competitors.
He's going to talk to you about how we will keep Under Armour true to our core and connect with athletes through an authentic position around training that is distinct from our global competitors. We will forge our own path globally and not simply follow the same prescription used by others. The world is different these days with the impact of the rising middle class and tools like e-commerce providing us with growth opportunities more diverse, but also more complex than that when the established global athletic brands were making their inroads internationally. Toward that end, Charlie's going to tell you about new leadership in Western Europe and China, the strong growth trajectory we remain on in Japan, and those new partnerships and structures in three key markets in Latin America.
The result will be that when you're down here for our Investor Day in 2015, you'll see an American brand that is making strides as a global company, with international revenues accounting for a meaningful higher percentage of our revenues than they do today. We are committed to global. We are working like crazy to evolve ourselves to that point, and we very much like the direction we're headed. Next is direct-to-consumer. You're going to hear the word platforms a lot today when our teams speak, mostly because the manner in which we've been able to take a single innovation and span it across multiple product categories has been a key component of our growth. Henry Stafford is going to talk about how we plan to continue expanding our reach to more athletes through strategic expansion with our existing partners.
We have an important weapon in the armory, and that's our direct-to-consumer business. Our growth in DTC over the past two years has been excellent. Moving from 23% of sales in 2010 to nearly 29% last year. Saw another solution to the retail puzzle. Our Brand House enables us to merchandise the best presentation of our multiple platforms in one dedicated setting. We're able to provide an elevated retail experience around our pinnacle product and showcase women's and footwear in the light they frankly deserve to be seen. We've allowed ourselves to not take credit for what we've done, and we're going to do that in our own stores, and of course, you'll see that happening more in our wholesale partners as well. Frankly, the results that we've seen from our own store have reinforced our faith in those businesses.
Since we opened in February, we've been running at about a one-to-one ratio of women's to men's. Footwear has been checking in about 20% of store revenues compared to about 11% in existing wholesale distribution. While it's still early, we're confident that when our consumer sees the full breadth of the brand presented in an elevated manner, we win. There are more stores to come, Henry and the team are going to tell you about where that is heading. Let's go into innovation. Our team is obsessed with it. We're obsessed with understanding our consumers' needs and bringing to life innovation stories that frankly solve their problems.
While we work with the best research partners and technology hotspots around the globe, we are geographically advantaged by being based right here in Baltimore, as it locates us among partners as varied as NASA, DARPA, In-Q-Tel, DuPont and Vista, the Johns Hopkins University Applied Physics Laboratory, and Lockheed Martin, just to name a few, all within a 50-mile radius of our headquarters. These research innovators and our relationships worldwide will enable us to leapfrog existing infrastructure and deliver next-generation product today. What's our next great Under Armour product innovation going to come from, and where? That's simple. The same place that our first innovation came from, the field of play. Where the athlete lives and the place where coldblack technology that reflects infrared rays and makes dark colors feel light. Armour39, the first of its kind performance monitoring system for athletes that measures what matters most, willpower.
With willpower, athletes can, for the first time, objectively measure a hard day and a light day to ensure they're training effectively to meet their goals. We brought the first true innovation to the football field in a very long time with our introduction of the Highlight cleat. Not only did its unique design language stand out for Cam Newton on the field, but it made a major statement for our brand on the shoe walls of our top accounts. We're taking another important step in footwear innovation with the introduction of our SpeedForm technology. Footwear said they would kill me if I tried to explain it, so I'm going to leave it to Kip, Dave, and the team to do so. We are excited about what the next evolution of fit for footwear as a whole means coming from a brand like Under Armour.
Let me start wrapping up then, speaking about our athletes, speaking about those who actually put our brand out there. Knowing that all of our innovation is born on field, I want to spend a minute on the people who provide us with that first insight, the athlete. Global icons like Lindsey Vonn, Michael Phelps, and Tom Brady. Some upcoming ones that we talked to you about way back in 2011. Buster Posey, who went on to win the 2012 National League MVP award and lead his San Francisco Giants to World Series champs last season. Cam Newton, who had yet to take his first snap as a pro, but went on to throw for over 4,000 yards, setting the rookie passing record and be voted the NFL's Rookie of the Year.
We also talked about a 19-year-old outfielder playing Class A ball for the Hagerstown Suns, Bryce Harper. Less than a year later, he was in the Major Leagues on his way to being the youngest position player to ever appear in the All-Star game and then being named National League Rookie of the Year. He still won't be able to get served in a bar in this country until later this October. Who's the next great Under Armour athlete? We launched our global I Will campaign with a big press event in New York, and it culminated in the commercial you saw when we started this morning. Let's take a look for a second at a recap of what the first global brand holiday, of which there'll be three this year, looked like that we launched around Valentine's Day of our opening year. Cool.
As you can see, we're excited about what brand holiday is going to mean for our company. Consolidating and taking a lot of noise or clutter that's spread out over the course of 12 months and consolidating into two or three or four major key events. Our first one, as I mentioned, kicked off in February, around a lot of hype and excitement and new product launches from new footwear and Armour39 and our I Will campaign. The second of which will be coming to market toward the beginning of back-to-school season. Then we'll have one final campaign that will kick off before the end of the year. What you saw there, though, was Bryce Harper, 20 years old. Kemba Walker of the Charlotte Bobcats, 22.
Sloane Stephens, age 20, the rising star of American tennis, who took out Serena Williams at the Australian Open a few months back. Canelo Alvarez, age 22, newly crowned junior middleweight champion of the world, the pride of Mexico, a market where we were just getting our feet wet in 2011. With assets like Canelo, who's going to be fighting Floyd Mayweather on September 14th in what will be the fight of the year, football teams like the 10-time champion Toluca, and our new structure in Mexico that Charlie will share with you later today, we are in great position to have Mexico be one of our global leading markets in 2013 and beyond.
While we continue to invest in our core sports with great athletes like Bryce Harper in baseball and Arian Foster in football, we are evolving our brand voice, taking to the next level of Under Armour consumers through athletes like Sloane in tennis and Canelo in boxing. Two years ago, we just announced our partnership with Tottenham Hotspur of the English Premier League. The team had a great season in their first year wearing Under Armour kits with stars like EPL Player of the Year, Gareth Bale, and top American Clint Dempsey. Helping introduce our brand to our next generation of brand loyalists. It's the voice of next that will help us grow our global footprint by connecting with consumers through their sports, their athletes, and their teams.
Just as Tottenham has helped introduce Under Armour to the football fans around the world, next year's Winter Olympics in Sochi and the 2016 Summer Olympics in Brazil will be key opportunities for us to bring our message to a global audience. Next February, the U.S. speed skating team will step onto the ice in their Under Armour speed suits, making athletes better. This is our wheelhouse, the place where we built our brand. I can't show you what we're working on, but we've been working closely with Lockheed Martin and the University of Maryland to ensure that when Shani Davis and his teammates are on the starting line in Sochi, they'll be wearing the best possible equipment to help bring them home gold. Our exposure at the next Winter Olympics doesn't stop at speed skating.
We'll be outfitting the U.S. bobsled team, Canadian snowboard team, the Swedish and Austrian ski teams, and a host of other athletes and teams. Our Olympic story will continue to get bigger in Brazil in 2016, as we'll be outfitting both the women's and men's U.S. Olympic gymnastics teams. As I'm sure you're aware, the number of eyeballs watching gymnastics during the Olympics was enormous, with the women's portion pulling the highest viewership in prime time coverage in London in 2012. I think our message around athletes is pretty clear. We will continue to focus on finding the next great athlete and ensuring that we stay relevant with our core consumer. As I say that, I look out to the audience and I wonder, are there any questions with that strategy?
I have one.
I'm sorry. Where's that?
Here in the back.
The back. Could you please identify yourself?
Hi. How you doing?
Hi.
I'm Tom from Boston. I've been a loyal shareholder for about three years now.
Wow.
How do you decide which athletes to use in your big global marketing holiday campaigns? Are there open castings, or can I try out for something like that?
Well, Tom, we keep representatives in each region, and you can actually speak with them. That would work well. Ladies and gentlemen, Tom Brady, would you mind joining me on stage and help explaining some of this, please?
Thanks for doing this.
You're welcome. Tea.
Thank you.
Thanks, man.
Good to see you.
Welcome. Thanks for coming.
Hi, guys. How you doing?
We're good. First of all, before I try and kick off with anything, there's a lot of people in here from New York or from Boston. Anything that you would like to say to them? Start with Boston, let's be nice, and then maybe a bit for our New York friends as well.
Yeah. Boston's strong. We've been through a lot this year.
Yes.
Yeah. It's been great to see the support of the community really rally around something so tragic. It's been home to me for 13 years, and my family's there now, and we feel like it's our home and just proud, really, to represent the city on the good days and the not-so-good days. Coming to Baltimore is certainly bittersweet. Other than you, it's not my favorite town.
I knew that.
New York would probably be a very close second.
We'll move on from that, too. I got to say, rooting for you and watching you. I imagine for you, any year that you're not playing in the Super Bowl must feel like a long off-season. What are you doing in the off-season? What happens, other than coming and spiffing for us at the Under Armour Investor Day?
Well-
Doesn't sound like good preparation for the year, Tom.
At this point, going into my 14th season, if you can believe that.
It never stops. What these professionals do, what you do, it's a year-round business for me.
Right.
There's really no off-season at this point for many professional athletes because the competition is so tough.
Right.
You lose a game at the end of the year and you're very disappointed, it's not the last game of the year, which is the Super Bowl.
Right
It's highly competitive, and when you lose, you learn from the lessons that you've over the course of the season, and you try to apply them as you move forward.
Yep.
I think we've done a good job of that this season as a team, and it's important to move on. I think one thing I learned last year, I talked to a guy, he said, "Listen, after every bad play, the clock's still ticking on the next play." He said, "You got five seconds to forget about that bad play.
Right.
Deal with it emotionally and move on.
Right.
He says, "After a game, you got three hours, and after a season, you got three days.
Right. Right.
Because all those negative emotions affect all those subconscious cells in your body.
Right
When they start heading in one direction, it's hard to turn them the other way. I'm a pretty positive player, and it's nice to be around positive people and certainly being around you and this brand has been a great positive experience for me.
Talk to that for a second. After 14 years and joining us three and a half years ago, I guess, as long as it's been, what's different about the way you train today and frankly, why Under Armour?
I looked around the locker room, I looked around the streets, and I saw what the young kids were wearing.
You're still a young kid, too.
I know. I feel like a young kid.
Yeah.
You see the kids in high school, in the Pop Warner games.
Yeah
What they're wearing is Under Armour. The innovation that's taken place and really the way that I've been treated as an athlete, it's. I'm sure all the athletes are treated this way, there's nothing that Under Armour can't accomplish for an athlete.
Right.
That's what I'm looking for.
Right.
That's the take that I have with my teammates. I'm trying to be the best that I can be for my teammates. Certainly Under Armour's a part of my team-
Right
I'm able to try to commit as best I can to you guys.
Well, they all get special treatment, but you definitely get more special treatment than most, so that's. Are you used to that? You don't know the difference, do you? Okay. All right, let's talk about one thing you did in the off-season, which is you did it last year for us, and you did this Funny or Die commercial for us, which was pretty funny. I don't know, maybe refresh some people's minds and show you the last. Anybody from Boston might have seen it, but this was the fastest commercial or fastest segment on Funny or Die to declare immortal status, which means get 1 million views. Something we did with Tom, it shows a little more of personality than somebody calling plays and taking calls from Coach Belichick. Without further ado. Very cool.
All right, you've got a follow-up to that we're doing. You just shot that one. How did that go?
Hopefully as good as the first one.
That kid he's unbelievable. The actor?
He's great.
Yeah.
Yeah. Some of those takes, if they had the outtakes, that's really what I want to see. My head hurt so bad at the end of the day, just from laughing so hard.
Yeah.
The guy that came in, he goes, "You fled from Boston?" Every time he did it, I started laughing. The director was like, "Cut." I'm like, "I can't look at the guy." I tell you, playing football is a hell of a lot easier than doing that, though-
Yeah.
-from my standpoint.
Hurry up and wait. Got it. Obviously, as we mentioned, big crowd from the Northeast, a lot of big shots in here from Boston, too. I can see it now, standing at lunch over my tuna salad, somebody walking up to me and saying, "Hey, Kev. I know Brady. I know him. Told Tom I said hi," or, "I know Mr. Kraft." They'll probably be in the box at some point with Mr. Kraft. Any good Belichick stories or anything you can help give them an in when they're-
Oh, God.
when they're talking to him?
God, that's a great question. I'd be crucified by Belichick.
Oh, nobody's going to say anything in here, right?
No one.
Right.
No. There's no social media, right?
Right. No. No question.
God, if I had some Belichick stories. I've got a lot of them.
Okay.
They're going to be in my book one day.
Okay, that's good.
Yeah.
That's great. Well, you got a lot of people who would be happy to buy here. How about one last one from you, then, is in a second here, I'm about to make predictions for the next three years for Under Armour. First of all, any predictions there? Secondly, any predictions for the Patriots?
Well, I'm Team Under Armour.
Yes
I'm at full steam ahead. Being around you and listening to your commitment, not only today but really over the course of our relationship, it's just very impressive. I think aligning with the right people and seeing the vision of people, that's what life's all about. As I said, my commitment to you and your commitment to your athletes is what stands out the most.
Thanks.
I'm very appreciative of that. I know you're going to come through.
Yeah.
For our team, I'm sure hoping we come through. Like I said, it's a very competitive business, and everything in the NFL is to bring the guys at the top back to the middle and the guys on the bottom up to the middle. We've been on the top for a while, and I hope we stay there. We got another shot at Baltimore this year.
Yeah.
We play the Jets a few times. We got tough competition.
Yeah.
I'm excited for it. This is a really important part of the year for us to lay the foundation of our team, our teamwork, what our level of commitment is.
Right
to each other. That's what these practices are about that we're going through now, and hopefully it pays off in the fall.
Yep. Tom, you're the best at what you do. Thanks very much for being a part of Under Armour. You're awesome. Appreciate it.
Thanks, KP.
Thanks very much. Good luck.
Thanks, brother.
Thank you.
Thank you, guys.
As I mentioned, we're about to make some predictions. The next one is not unlike the prediction that we made back in 2010 or 2011 when we told you that we were going to double our business. The next target that we have for our revenues for Under Armour is by 2016, we will achieve $4 billion in revenues as a company. Doubling the size of our company once again, just as we promised you last time. That target is just part of what we want you to take away from today's visit to Baltimore. Not just that we're a growth company, but that our growth will continue to be driven by what's gotten us to the precipice of $2 billion.
Five simple growth drivers: delivering performance, staying true to our core, understanding what our consumer needs next, being able to tell our story through new athletes and new distribution in new geographies. We're ready for the next challenge, and we are truly armored for growth. I'd like to get things started by bringing up Kip, my original partner at Under Armour, who I mentioned earlier. Kip was a lacrosse player at Maryland when I was a football player there, and we thought we'd make a good balance because I could do football, and he could do lacrosse, amongst other things.
I can tell you the reason that he's here is because he's someone who's been side by side with me since really the beginning of the company, someone who's done every job in the company and who knows it inside and out, beyond our culture, the intuition. There's a reason that Kip runs our supply chain, our innovation teams, and our footwear, and you're going to hear a lot of that today. With that, let me welcome my partner, Kip.
Thank you. Wow, that's a tough act to follow. KP is polished. Tom is Maybe I could follow Matt Damon, but I'm not sure I could follow Tom Brady. Thank you for being here today. I'm excited to be on stage to talk about our Armored for Growth. We're excited to really show you what's underneath the covers. I'm going to talk about a few things today. Kevin mentioned I've done every job in the company. I think sales and marketing was, like, a day and a half in 17 years. I really feel more comfortable in manufacturing, supply chain, logistics. I love sitting in front of a 5-axis machine, watching new prototypes come to life. I'm a product person. I really couldn't do this without my team, the team that works in innovation, in supply chain, in footwear. We really do have a phenomenal management team.
Everybody down to the last player on the team. Really makes my job exciting, also really easy because they're so good. One of the things that's important is we have to have integration. Being a military brat, my brother was a Marine, my dad was a Marine, and my grandfather was in the Air Force, I use every opportunity to do a plug for the military, and I'd like to show you a little video.
Under Armour is in a heated battle with.
Great. It's not the most typical chief operating officer presentation to dive into design and innovation and how innovation fuels our growth. I really look at my job description as aligning all the pieces to get these innovations to the marketplace. That could be our own stores, that could be our key retailers, could be our web, global. Really getting these products to marketplace is my job description. Peter Drucker has a famous quote, "Business only has two functions," excuse me, "and that's marketing and innovation." Really today, we're going to talk about looking at how we drive innovation. We have to have a sustained flow of product. It's constant newness to the floor.
In order to do that, we really have added discipline, process, engineering to our skill set over the last two years, where it's not a mistake that these products show up and when they show up. We've allowed our product and our operations teams to get alignment to deliver high-quality product at great margins. Matter of fact, over the last two years, we've increased our SKU productivity and still maintained the significant growth in apparel. We're finding a better mousetrap. We feel like we're hitting our stride. This is a simple slide. We like to keep it simple at Under Armour. Innovation's fairly overused in the marketplace right now. What the consumer really demands is the right designs at the right place at the right time, and we feel like we found a methodical way to constantly engineer this into our processes.
We look at innovation really through two lenses, sometimes they happen together, sometimes they happen apart. Really technical design and aesthetic design create higher ASPs and better margins for us. I'm going to go into a couple examples today, our apparel and footwear teams are going to give you some in-depth looks at some of the ways we've brought these platforms to the market. They all drive brand, they drive revenue, and they drive gross margin, and it's what we predicated our entire company on over 17 years. The first example I have today really was a two-year project that we did with Joanna Scurr at the University of Portsmouth, which was we needed to resonate with female consumers. We addressed some technical design needs to make a great-fitting sports bra.
It's elevated our business to, in 2016, it'll be over $140 million, and really solidifying us as a real player in the women's sports bra industry. It was through the relentless pursuit of innovation. The next one is aesthetic design. I saw a lot of folks at the retail store last night looking at our Alter Ego. I have a three-year-old son. He's wearing Alter Ego. This is a great way to take design and add it to our core business of base layer and get an amped-up look, an amped-up feel. It's our traditional innovation that we've had for years, and it was one of the fastest-selling items on ua.com. This is a product that we're super excited about going into back to school and the holiday season.
It's a great way to show the difference between technical design and aesthetic design, both delivering an innovation that consumer values and is willing to pay for. It's a great lift to our base layer business. The next one, sometimes you hit the nail on the head. I think I've heard that statement a couple times in previous slides already. We have an item with footwear that we hit the nail right on the head. We did both. We took technical design and a disruptive look in the marketplace. Last year, we sold 20,000 units of a Highlight cleat, and it evaporated overnight. We're going to sell over five times as many this year at a price over $100. We are commanding that we know how to deliver these products to the consumer, and they're willing to pay for them.
Now we're taking this platform of Highlight into new areas like baseball, lacrosse, and soon into running. It's a great example of where we've delivered both innovations at the same time, and it creates a platform for us. The next one is a little bit different, and I picked this example because Henry and the apparel team are going to go a little bit more in detail about ColdGear Infrared. We searched the globe to find a way to put a lift on our traditional franchise business, ColdGear, and we found a ceramic powder that retained body heat. This aesthetically has a print on the inside, but really the feat here was supply chain manufacturing, customs regulations, printers around the world. We had to figure out how to get this to print on the inside of our garments. It's going to be offered in-store July 1st.
In its first year, it's going to be over $100 million. It resonates the need for the integration of the supply chain and the product operations, that these innovations can't get to market by themselves. Henry and the team are going to go through it, but we're super excited about ColdGear Infrared for this back-to-school season. Before I talk about our next adventure, these all aren't by accident. Kevin alluded to our style number 0039. It was our first shirt. Matter of fact, I remember writing that number on a number of boxes in Grandma's basement. It was exactly what we've talked about. It was technical design, aesthetic, and disruptive. In 1996, you might remember baggy was trending, and we come out with a tight-fitting T-shirt.
I remember getting calls from equipment managers telling us we were crazy, guys would never wear it, then they're calling back the very next day, "Can I get more?" This is actually the way we've designed our entire company over the years, I just want to connotate that it's not on accident. Really, my job is to ensure every season we can do it over and over again. We're also excited about new markets. We are launching the first-ever electronic product with Armour39. I think you saw them working out in front of the store. I'm going to talk about it a little bit, we have a video to kick it off.
You've never trained this way.
We first debuted this product at the NFL Combine two years ago, this spring, we just launched it to retail. We sold out of our initial quantities. It's really for true athletes. It's a performance monitoring system. The great thing, Kevin mentioned it, is at the end of every workout, you get a score. We call it the willpower, from one to 10. Every day, literally, you can see how you did, the athlete can drive to get better. I'm addicted to it. The product's phenomenal. We see the digital space as an enormous opportunity. Was it easy to get this product to market? No. Did we rally around it? Yes. Did we find ways to get it done? It's really impressive and super excited. I would love all of you to give it a shot.
It has an app, super easy to use on your phone, a strap, soon, a watch to come out with it. We're super excited that we're entering a new space we see this as the next frontier. Really excited to be here today. You're going to see me again when I'm up here talking about footwear. I think I'd like to introduce my counterparts, Henry Stafford and the apparel team. I just want to remind you, my job as Chief Operating Officer is to get these innovations to market, these guys make it really, really fun to do it. I want to invite Henry and his team up.
Thank you, Kip. Thank you. How's everyone doing? Good. All right. We've got our product leadership team coming up here with me today. It's my pleasure to have the three most famous Michigan graduates up on the stage today. One obviously being Tom Brady, the second is Gwen Liaudreau, and the third is myself. Earlier in the back room, I was talking to Tom a little bit and I was trying to reminisce about the parties we were at together, the mutual friends we had, and he didn't quite remember. Maybe a different experience for me than him at the old school. We're really excited and happy and proud to be here today. We have an amazing team. An amazing team that's taking our business to the next level in apparel, and that's what we're here to talk to you about right now.
I want to take the time and introduce our team, because we have three leaders, three professionals, and three individuals who are going to build this business and have built this business for the years to come. First, I would like to introduce our Executive Creative Director of Women's, Leanne Fremar. Leanne, please tell the group a little bit about yourself.
Thank you, Henry. Good morning, everyone. It's wonderful to be here. I am a relatively new face at Under Armour, having joined in the fall. I bring with me 15 years of experience in the fashion business, having started my career at Ralph Lauren and then moving on to Gucci and then Gucci Group and PPR, then spending the last 10 years at Theory and then Fast Retailing, building a brand from really just an idea into a billion-dollar global business. It's an honor to be a part of the Under Armour team, we've got incredible things to talk to you about today.
Yellow, of course, is your favorite color, right, Leanne?
Yellow is my favorite color today.
Okay.
Whatever the next trend color is really my favorite color.
Good stuff. Good stuff. Thank you. Next, I would like to introduce the individual who coined the phrase, "Women's will be as big as men's one day," and that is Gwen Liaudreau, who is responsible for leading our women's business to where it is today. Gwen is a true leader in leading the team. Gwen, please talk about your background.
I never like to correct my boss in a room full of people, I think that I said women's would be as big as men's as soon as possible.
Okay.
Anyway, good morning, everybody. I saw all of you or most of you 2 years ago. It's nice to see you again. I started my career in women's apparel about 18 years ago, and I've had amazing opportunities to drive businesses for great brands like Chanel, Lilly Pulitzer, and The Gap. I joined this great brand 4 years ago with the charge to drive the women's business. You're going to hear a lot about that today. Really, I'm just incredibly excited and thrilled to be able to join forces with Leanne and continue to drive revenue, growth, profit, vision, aspiration, and everything unexpected for the women's business today and beyond.
You got it. You got it. Last but not least, I would like to introduce Glenn Silbert, our partner on our biggest business. That's our men's business. Glenn also runs our accessories and youth businesses and has done an amazing job in building these platforms for us. Glenn, take it away.
Thanks. I'm honored to be here, and I'm honored to be sitting next to two people who are gunning after being bigger than me. Challenge taken. Thank you. I'm honored to be leading an amazing team that's driving our men's, youth, and accessories business. I've been at Under Armour for about three years, initially heading up our youth strategy. I have to say, it's been an absolutely amazing ride. Before Under Armour, I spent about 18 years in the apparel and accessories industry, with about eight of those in the performance space, working with Foot Locker. If there's a key takeaway from my presentation today, it's that men's and youth are just getting started. When you leave here today, you'll be convinced that we're growing, and we're growing big.
You got it. We're excited to tell you where we're going, and we have a great story. A story of momentum and a story of growth. The word you are going to hear a lot today is growth. You're going to hear from Charlie Maurath, growth internationally. Kip and the footwear team are going to get up here and talk about growth in footwear. Chip Adams will talk to you about growth online. Perhaps the most positive indicator of the health of this brand is the continued growth we see in our apparel business. We're armed for growth and will continue to drive our apparel business to be number 1 everywhere we sell. Right now, we are either number 1 or number 2 in the vast majority of our channels of distribution, and we are on a quest to be number 1 everywhere we sell.
Two years ago, I had the pleasure of walking you through our roadmap of growth from 2011 to 2013. We talked about how new innovations were going to be the engine for growth. We talked about our maniacal focus in developing our women's and youth categories. Well, today I am proud to stand before you and tell you we have delivered on this roadmap. The apparel business has grown by over 20% for 14 consecutive quarters. Our men's business has doubled from 2010, approaching $1 billion through this year. Our women's business has more than doubled in that time period, reaching over a half a billion dollars this year. Our youth business has doubled in only two years to a size well over $200 million.
The point I want to make today is we continue to see this level of growth in all three categories over the course of the next three years and beyond. We continue to see this rate going forward. Here's the deal, folks. We are just getting started, that is the message we want to send to you today in our apparel business. We have just scratched the surface of what is to come, both domestically and globally. For the next 30 minutes, this team is going to tell you how and why we are so very confident in this business. We will talk to you about the relationship with athletes and the tireless research we do to connect with athletes, how this research leads to authenticity and innovation. Innovation leads to revenue-driving businesses and new business inventions.
I said this two years ago, I say it today, I will say it two years from now, four years from now. When we are doing each of these conferences, it is about innovation and new business platforms that we are going to continue to develop. Later today, I will also get up and talk to you about another key strategy of ours for growth, that is by reaching more athletes. We have the ability to scale much more significantly in the years to come by reaching more athletes. Our size is opportunity. In the coming years, we are going to put plans forward to sell our product in more places to reach more athletes. Again, this is both domestically and globally. Let's talk further about our first strategy, innovation. Here you have an image of who we call Future Girl. She's an athlete.
She's an influencer, a beautiful individual, highlighting the future of innovation, the ability of a shirt to change color by the swipe of a finger. Now I will show you a video of another individual representing innovation. Another beautiful person, a true influencer. Let's go to the video.
By innovation.
About a beautiful person or an influencer. Kramer has one thing right, and we take it as a massive compliment. We are serial innovators. We are. That is what we do. That is how we breathe. We act on it every single day. Innovation leads to growth, which leads to revenue-driving platforms. Let's take Storm. Kevin talked about it this morning. It all starts by working with athletes and ultimately solving a problem. The problem was, and problem had been, that athletes needed to be dry. We worked with our teams and outside firms to develop technologies to treat fabrics from allowing water to penetrate. This technology is what we call Storm. In 2011, we launched this technology into our cotton fleece sweatshirts. It was narrowly focused, and it was narrowly distributed to authenticate the technology.
Consumers loved it, and it quickly grew to a $50 million business. In 2012, we expanded it into new fabrications and new categories such as golf, run, outerwear, and beyond. As you can see, in one year, the business doubled. The key for us and the focus for you to take away is year three, four, and five. We start to reach scale in the third year of a technology launch, and years four and five will continue to grow. This is when an innovation turns into a platform, and that word platform and a platform innovation is very important for you to take away. As you can see, Storm will have grown from a start of $50 million to $225 million in three years. Storm is a good example of our focus. Developing innovations that will evolve into platforms.
Innovations that in five years will grow to over a half a billion dollars. Along with Storm, in 2011, we launched our Charged Cotton technology. Cotton allows us to access more of our athletes' closets while bringing a performance angle not seen in the market. Both the Storm and the Charged Cotton platform will reach $500 million by 2016. The point I want to make right now is that's not all. The key is our pipeline of innovation is full. We will continue to develop new platforms over the next three years. Whether it be through ColdGear Infrared, the next generation of ColdGear. This launches later this fall, and this will be our biggest innovation launch in the history of our brand. ColdGear Infrared will keep athletes warm and dry. Scent Control, another innovation.
This has revolutionized the hunt and outdoor space, which is a significant business of ours and is growing substantially. coldblack, which keeps our athletes cool when the weather heats up, particularly in run and in golf. The Armour Bra, which has connected deeply with women, and Gwen and Leanne will talk soon about the importance of the bra business for us. Another innovation, ArmourVent, launching in spring 2014. This innovation will keep athletes at their best when others are hitting the wall. What is on the screen behind me is not everything we have. You will continue to see new innovations launch in 2015 and 2016 that we are currently developing. We will launch new innovations every year and foster these innovations to become platforms of growth for Under Armour. Technology and innovation will drive revenue for us now and in the future.
We are not stopping there. Our athletes want to look great. Earlier, Kip mentioned design, and I cannot stress enough for you today, we have and will continue to over-index on the focus we put on the design and look of our product. Our athletes want to look different. They want to stand out. They want to be noticed. You will see a maniacal focus on newness and newness in design that we bring to the market in the coming years. Here is how we see it. When you have innovation on one side and brilliant design on the other, that mashup together is a beautiful thing. That is what we are focused on, and that is what is going to drive our business in the coming years. In addition, versatility in product is only going to be more important going forward.
What do I mean by versatility? Something that can be worn in the gym or around town. You know it and you see it, we are going to capitalize on it. Lastly, I want to comment about the history of this brand. When a consumer is pulling this brand into a category, it is a winning formula. Our athletes wanted us to make cleated footwear. They asked for it. Young kids were seeing their older brothers and wanted us to make clothes for them. Women demanded that we make product for them, whether it was in the studio, in the gym, or on the track. What I am telling you right now is that our athletes and consumers are asking us to make product for them on and off the field. We are committed to providing them apparel all day long. This is an absolute revenue opportunity.
Over the past few years, we have significantly added to the leadership, talent, and infrastructure to build our design capabilities. We will continue to build this capability to creatively drive our business. An example of this is our New York creative center that we are going to open in the fourth quarter of this year. Here, we will have the ability to build upon the great work that our design teams are driving in Baltimore. The addition of New York will enable us to add capability, very importantly, to continue to build our teams and attract creative talent. We have also opened up an office on the West Coast this year. Again, our design and development capabilities are being furthered. This leads to an important initiative for us, which is getting product to market faster.
We are and have been building capabilities around the world to use speed and our size as an advantage. An example of this are the development and technical design capabilities we have in our Hong Kong office. Our business today is currently benefiting from speed to market initiatives. You can look at our Studio business, our Alter Ego business that Glenn will talk about in a few moments. Our business is being driven by speed, and you will continue to see that in the coming years. Our mission is a fast global product engine. Obviously, we are very excited about design, which is a great lead into a business that is maniacally focused on design. I would now like to bring our women's leadership team up to talk to you about where they're taking our women's business. Thank you.
Okay. Welcome again. I am thrilled to be here. Thank you, Henry Stafford. When we met two years ago, we talked about how in women's we were building the team and the product that would make us the driving force in the women's athletic apparel space. Based on the $250 million in revenue that we've added to the women's business since 2010, I feel highly confident to tell you that these boxes have been checked. Today, Leanne Fremar and I are here to share the story of women's, the women's business, from a great little idea in 2002 in a very male-focused company, to a key component of future growth for the Under Armour brand.
Rather than strive just to be a driving force, our goal is to reach $1 billion by 2016, become as big as men's as fast as possible, and to be the number 1 women's athletic apparel brand in the world. I'll start with a little bit about how we built this great momentum, grew the business, took mind share, took market share, and became number 1 or number 2 in every place that we show up. Leanne Fremar will walk you through how we plan on adding magic to our winning formula and why we are completely and totally armored for growth. A little bit of history. When we talk about how we've built the women's business, we talk about the phases of the women's business. Its evolution. Phase 1 was about finding our way, and it represents the first $100 million.
We leveraged the power of the brand, we drafted off the success of our men's business, and certainly, as that first picture reminds us, we were serious, and we were no-nonsense, and we were in the game to win. It made complete sense at that time in the arc of our business to focus maniacally on that sharp point on-field athlete. By delivering great technical product that completely exceeded her expectations of performance, she totally fell in love with us. Then we moved to phase 2. During phase 2, starting in about 2009, we established our identity, and we grew the business fourfold. It was a busy phase. We evolved everything. Everything about our point of view. We refused to talk about product just in terms of the technical. We insisted that it be about the intersection of performance, beauty, and style.
Everything we approached, we looked at through a female first filter. We expanded the definition of the athlete from that awesome team sports athlete to more broadly include yoga, boot camp, spin, and all of her activities. We knew that to truly resonate with her, we needed to win big in a category most important to her. I will take the ladies. You will probably think that I'm going to say bottoms, but I am not. For the athletic female, it's her sport bra that is the most important piece of apparel she will choose. While you take a look at what's amazing in front of you, I'll remind you. The last time we talked, we talked about the launch of the Armour Bra, the best bra for every athlete, only from Under Armour.
No longer a singular item now, the Armour Bra has evolved into a high-impact platform or a stable of bras that has created a halo effect for the entire category. This business, once less than 6% of our total, is tracking to exceed $140 million by 2016. I just want to take a second to kind of walk you through what we've got here. The first thing you should notice is that there is no Armour Bra on the stage, and that's on purpose. We told you about the Armour Bra, we launched the Armour Bra, we made magic happen with the Armour Bra. The customer has fallen in love, it continues to be a key driver for us, at retail, in all points of distribution, as well as internationally, which has been an awesome addition to the story.
What we decided to do was, okay, great, check, technical, wired for sport, locked and loaded, ready to go. We get you. We wanted to broaden how we talk to her in this really personal space. We decided to have a little bit more fun and get a little bit more feminine, but never dial back on what we were going to deliver to her in terms of performance. This Get Set Go Bra is a great example of that mashup Henry talked about, performance, beauty, style, technology. Still absolutely a mid-impact bra, but it's just a little more feminine, and it celebrates a little bit more about what we know is important in fashion today in terms of day shimmer and shine. It shows that she's got the confidence to show up and be noticed. We love this bra. Thank you.
Next, we call this internally the little sister of the Armour Bra. It's the protege. We love her as much as the Armour Bra. It is a serious on-field bra. It is a serious runner's bra. You are completely confident with absolutely no distractions when you suit up in this bra. What's great about this, and the reason why she's a part of the Armour Bra platform, is because it's still cup and band, so it's customizable in that way. After pretty intensive market research, we learned that customers love the ability to get in and out of a bra really easily, and a front zip absolutely achieved that. We stood for it, and we brought it to market, and it's been terrific ever since. Thank you. The softer side of bras.
We talked about the high-impact platform, the mid-impact platform, now there's that everyday bra or that every activity bra, the one you just want to climb into and sort of forget. I almost say, like, it's so comfortable, I could fall asleep in it. Our approach in low impact through seamless was to take a really young, fun, spirited look at how we do color, how we do little trims and details, but it's incredibly pure and simple, and we did that on purpose. What we're finding is that women are buying these in multiples, kind of like jelly beans, because they're irresistible, and the colors are amazing, and the price is really sharp. We love that because we love, like a shirt in the beginning, getting on the backs of every athlete possible. Thank you, Natalie. Okay, a little exploration here.
I was talking to you about pushing beyond the space that you expect to see from us in a highly technical sports bra. I think that we've well pushed beyond that space when you look at what we call the Sport Plunge. Again, we heard loud and clear from some of our customers that she really, really wanted to be noticed at the gym. Is this a running bra? Probably not. Do I want to see her in a marathon in this? Some of you might. I probably don't. The point is, that it gives you the support and the performance that you need for the right level of activity. If you're this girl, you're going to be so excited that we gave it to you, and actually, we had the guts to do it first.
I love bringing the inner to the outerwear piece of the sport bra world and doing it in a way that nobody would expect. By the way, we didn't just do it in black and white. We hit it really hard with amazing stripes, so it is completely undeniable. Thanks. You guys have a good seat back here. Okay, lastly, not leastly, the workhorse bra is the Gotta Have It. This is the bra that I like to say is sort of a wonderful entry price point to the brand. It's also a wonderful way to start a conversation for our retail partners because a lot of women don't understand what a right bra means, and it's our job to educate her that it's not okay to wear an intimates bra to run just because she thinks it's okay. It's actually not.
It's doing damage to you. I could go on. I won't bore you with the scientific details, the point is, if we can get her in a bra early and get her to fall in love with us and then take her through her life as her body changes, her sports change, her needs change, we think that that's an incredible way to grow that kind of loyalty to the brand in this incredibly personal space. Oh, by the way, if I haven't said it before, men can't play in this space, so ha-ha. We do it first, we do it best, we get her first, we do it in a way that has a tremendous level of energy and fun and spirit and again, a little bit of look at me, but not as look at me as the Sport Plunge.
Thanks.
Thank you, ladies.
Yeah. Aren't you glad we have a women's business? All right. That brings us to where we are today. Even as we track to $1 billion at retail this year, we are just scratching the surface of the potential for our brand and the women's business. To talk about this next incredibly exciting phase when we become the absolute leader and influencer, I will turn it over to my amazing partner, Leanne Fremar. Thank you.
All right.
Thank you. Okay. It's hard to follow that. I don't know. Thanks, Gwen. What an amazing evolution of this business and with so much white space for us to define. Being the leader and influencer in this space is not just an opportunity for the taking, it's our right to own and lead. A lot of people ask me why I left such a coveted position in the fashion business to come and make gym clothes that sell at sporting goods stores. I smile politely and think to myself, "Wow, they really don't see what's coming," which is good because I do. I joined Under Armour because it's one of the fastest-growing companies in America and because of its visionary leadership, mostly because performance apparel and what performance means to her will be the future of how she will dress.
We are in the very early days of a movement, a shift that will redefine what a generation of women will wear every day. Under Armour is positioned to do it chicer, cooler, better and faster than anyone else, better than our competitors, and certainly better than the ones who have us in their blind side. Defining our consumer, knowing what's meaningful to her, anticipating her wants, understanding her needs, evolving her taste is our business. Owning her trust in fit, fabric quality, and durability is what we are thinking about and working on 24/7, 365. Surprising and delighting her with hot pops of fashion, trend-right product that remains true to sport, and giving her the stable of chic, classic basics that she can pair everything back to is how collections are being built.
These are the elements of what it takes to be a leader and an influencer in this space, and we are here today, and it is just the beginning. Through design, performance, accessibility, and interaction, we will strengthen the core and broaden our reach. We are armored for growth. In design and performance, we are investing in a world-class design team, one that will span between Baltimore and our new offices in New York City. We have recruited a diverse team of highly sought-after and talented designers to create trend-leading and trend-right product that infuses novelty and newness into our already winning formula for marrying performance with product. Accessibility. We are making our brand more accessible to her.
You will hear my teammates speak about our expansion into retail, our enhanced storytelling through e-commerce platforms, and she will begin to find us in the places she loves to frequent, her favorite stores and her favorite studios. At each interaction, she will discover product that she didn't even realize we make, and in turn, it will become her go-to for her workout but also for her daily life that surrounds it. Interaction. We are doubling our investment in marketing to her, launching global media campaigns, strengthening and growing our social and digital communities, and activating through events in places we know she is and wants to be. We are innovating. Gwen already spoke to you about our growth in bras. It's not our only growth story. Run and Studio are also growing platforms for our business, each projected to be $140 million by 2016.
We are giving her product that gives her style with her performance and performance with her style. In Run, we will be the category leader for the everyday runner, but also the elite fashion-forward runner. In Studio, she is taking her workout outside of the gym and off the road to the yoga studio, the spin class, the cardio kickboxing class, the sculpt class, the boot camp, and even the stand-up paddleboard. We have the perfect item and outfit for every occasion. We will continue our dominance in training, which completes the picture for this consumer and for the business. We will deliver the coolest killer key items that drive major volume and turn. By doing so, we will drive over $500 million in this category by 2016.
This is actually one of the more fun parts of a presentation like this, is when I get to talk about clothes. It's obviously what I love to do and something that I've spent a lot of time doing, and it's so rewarding to be able to be up here talking to you about something I'm so proud of and passionate about, and something that I love. Here we have sort of a great outfit that really talks about what's happening sort of in this run category in growth. We're seeing the traditional runner. She loves her shorts, she loves her tank, she loves her sports bra. We're also seeing that women, they're running on the street. You're outside. This is street style, and this is a fashion moment for you now. People are noticing you running by looking fantastic.
We are making product that makes sure she feels great and looks great. The capri is the new short, the crop top is the new bra, and the jacket is amazing. It's great for your run. It's great for weather protection. It's also great when you're going to Starbucks. We've got a lot of versatility in some of the product that we're building, and we're really excited about it. Thank you so much, Gabby. Again, for the everyday runner who wants a little bit of pop, we're bringing in hits like Shimmer. We're bringing in some of our new technologies like ArmourVent. Again, we're bringing in some print and pattern that feels trend right, trend now, but not trend overwhelming. Thank you.
With our studio line, for those of you who were at Harbor East last night, you got a chance to see something that is an incredible trend and something that we were right on top of, if not ahead of, which is color in bottoms. The black bottom is great. You can wear it all day long. The colored bottom is something that we're seeing is really meaningful to her now, and we are evolving that trend into fall 2013, and you'll see it as you walk around the studios for spring 2014. We're doing it in interesting ways at different price points. We're also seeing in studio is that women are wearing this to work out and go to the gym, but they're also wearing this to pick up their kids at school.
They're also wearing this to walk around the city, to go shopping, to run errands, to do things around the house. She wants to look great and feel comfortable. We're looking at an outfit here that obviously goes back to the traditional fashion colors of black and white. For that woman that wants to feel a little bit chicer, a little bit more understated, we're delivering product for her, too. Thank you, Natalie. Lastly, we have training. Our core business was built with the spirit of the on-field athlete at heart. We know her, we love her, and she wants to look cute. She wants to look fashionable. She doesn't necessarily want to look like a team athlete all the time.
We are building product that she can put on, that she can play in, and she can walk off the field and go hang out with her friends and have a coffee. Thank you. Or an iced tea. Thanks, girls. Or green juice, actually, I should say. Which is what I really would like right now. It's a lot to be excited about. Believe me, I am and we are. I really believe that our women's business will be bigger than our men's business, and I really believe that what Gwen is saying is right. We are armored for the growth to get there. With that, I'll pass the floor over to Glenn, who will probably contradict what I just said, but he will be talking about men's and you. Thank you.
Good job. Great.
Thanks, Leanne. I thought we agreed to only one time you guys were going to throw that gauntlet down, and I think I've counted four times in the last 20 minutes. All right. Let's see what we can do about that. All right. My message today is that men's will continue to lead and to be a high-growth business for Under Armour. We haven't even scratched the surface, whether that be in the overall market share of our core products or going deeper into key sports and new categories. The bottom line is that the opportunities are there and we are on the attack. Let's start with the scoreboard. This year, men's will close in on $1 billion in sales, and we will continue to drive double-digit increases as we drive to $1.5 billion by 2016.
Now, this growth isn't just coming out of sporting goods and core categories. While our training and base layer businesses are as strong as ever, we are growing in new spaces and new categories. Over the next few years, the men's team will focus on three things. Number one, to maintain a maniacal focus on the athlete. Number two, to drive to be the number one global training brand. Three, to expand our reach into categories and sports that provide us with long-term platforms for global growth. It all starts with one question. How we make all athletes better? Our brand was born on the field and authenticated by athletes. That formula hasn't changed. Moving forward, this will continue to be the driving force for all products that we bring to market.
I've asked a few of our athletes to come out to show you just what I'm talking about. Let's start with Gameday Armour. Here, it's all about protection without the weight. We challenged the old school thinking that thickness and weight equaled protection. Our team has built a pad system that is so free, extremely lightweight, and built to move with the athlete. Thanks, Dash. All right. Let's move on to the NFL Combine. This event is the most important job interview for young football players with dreams of going pro, and Under Armour is the official outfitter. The product we will showcase for spring 2014 is sonically welded, meaning absolutely no distractions, ventilated with our new ArmourVent technology for incredible breathability, and as you can see, will fit like a glove. Thanks, Lorraine. Last but not least, our Tottenham Hotspur kit.
As Kevin said, last year, we hit the biggest stage in the world of football with Tottenham Hotspur of the English Premiership. Working with the players at their training facility, we developed a kit that is super lightweight, ventilated, and fitted to perfection. In the first year of this partnership, the Spurs set a club record for points scored in a single season and qualified for the Europa League. Thanks, Travis. Thanks, guys. Let's move into the next key initiative of our men's business, to become the number one global training brand. Under Armour is known as a great training brand. For the last 17 years, we have brought their favorite gear. The growth has been tremendous, and we continue to bring new core essential products to market every season. We are thinking much, much bigger about training.
We clearly see the opportunity to develop a broader and deeper relationship with our athletes. Their needs are 24/7, and we intend to be there. Let's take a look at a few things. Let's start with core training. Through innovation and design, we are informing a new look and setting a higher bar for performance. In spring 2014, we are launching ArmourVent. The new technology allows us to engineer the fabric so ventilation is literally integrated into these garments. Move on to Combine Training. Here, we're driving a pinnacle movement in training. The athlete is motivated by performance, is proud of what they can do, and always looking to get better. It's been built with the fastest-drying fabrics that we've ever brought to market. As you can see, we're also bringing a bold design aesthetic to the concept.
Combine Training is exploding with our key partners, and we see this as a significant global platform for years to come. Thanks, Richard. Finally, athletes aren't just wearing training products in the gym, but want product that can be more versatile with the same great performance benefits. Our elevated training line combines style, comfort, and performance that will extend our reach outside of the gym. Thanks, Chase. Thanks, guys. Lastly, I want to talk about developing new core businesses at Under Armour. In 2013, we had two categories in men's that were over $100 million, training and base layer. By 2016, we'll add four more categories to the roster: run, golf, underwear, and outerwear. These have been high-growth businesses for us. More importantly, we have been authenticating ourselves in these sports and end uses. It's not enough to just show up.
It's about bringing performance and our brand DNA to everything that we do. Strategically, these categories are extremely important for our international growth. Whether it be the strength of our golf business in EMEA, the explosive growth we are seeing in running in South America, the excitement about our outerwear up in Canada, or the overall global growth of our franchise underwear business. We are gaining serious footholds in these categories. Thanks, guys. Before wrapping up men's, there's one more thing I wanted to share. About a year ago, Kevin challenged the team to think differently about base layer and the original Compression Tee. He had a vision that bringing something completely unexpected to market would not only shock the consumer, but create a buzz to lift our entire business. The team took the challenge and came back with Alter Ego.
We invited some of the most iconic and admired superheroes into the Under Armour family. The combination has been nothing short of explosive. This March, we launched online and with our key partners. When I say this product blew out, I'm not doing it justice. As Kip said, in less than a month, we were sold out. We saw numbers that we have never seen before. The bigger story here, that this has provided us with a new concept, one that we can build around, bringing freshness and energy to the market for years to come. What do you guys think about this? Pretty cool, right?
Cool.
Very cool. Just a little shout-out. In about two weeks, Man of Steel will be launching. It's the new Superman franchise. Dash, up front there, is wearing the actual shirt that the Man of Steel will be wearing. Exciting stuff will be launching on 6/14. Thanks, guys. Appreciate it. No pictures, please. As you can see, we have a lot to look forward to in men's. We will continue to fixate on our athletes to make them better. We will become the number one global training brand, and we will aggressively expand our reach to more athletes in more sports. What's next? Youth. This is the most important consumer we will talk about today. They are literally the future or what's next for our brand. They will be the leaders on and off the field.
Youth is part of our brand strategy, and we have an amazing team that is 100% dedicated to speaking to this consumer and building product for them. Every year, we have new athletes entering into the space, and we have pre-teens moving on to adult. The future value of building brand loyalty with the millions of kids we speak to is staggering. We have built tremendous momentum in youth, and we are clearly winning. Let's take a look at the growth. In 2013, we will grow our youth business by over 50%. We are well on our way to a $500 million business by 2016. What does this mean? Well, basically it means that we are by far and away the number one brand in boys, and this year, we're taking over the number one spot in girls.
What really excites us about this is that we're not even scratching the surface. While we continue to grow in our existing space, we are seeing tremendous success in new distribution. Coming out of our spring 2014 sales meeting, I have to say I'm more confident than ever of how high we can take this. It would be easy for us just to ride this wave, that isn't the Under Armour way. This consumer is so important to us that we want to take a deeper dive into who they are and what motivates them. We felt that they needed their own voice, both internally and externally, we came up with UA Next. I'll let the video speak for itself.
I'm not a pe-
Pretty powerful, right? Our kids, as we really took a deep dive, they're aspirational, they're irreverent, they're confident, and most importantly, they're all about team. We launched UA Next at retail this spring and have been very pleased with how it's being received. What will the team be focused on as we continue to recruit the future or next for the Under Armour brand over the next 3 years? Number 1, as always, innovation. We are building specific innovation and product stories for our kids, whether it be the UPF 50+ sun protection story or the chest protector in baseball or fun technologies like product that changes color when exposed to the elements. We will continue to put both performance and protection at the forefront of what we do. Number 2, team sports.
We are on a mission to be the head-to-toe brand in baseball, softball, soccer, football, basketball, lacrosse. Basically, any participation sport that Under Armour can make a difference. Number 3 is girls. I have three daughters at home, I have to make sure I get this one right. I hear about it all the time. Two years ago, this business was 5% of our youth total. This year, it'll be 20%. Over the next three years, our girls business will triple. Number 4, driving franchise-building key items. These are the items that mom and dad literally have to beg their kids to allow them to wash because they wear them everywhere and all the time. Not only are they huge volume drivers for our brand, they get our brand out there in a bold way in front of millions of people.
It's pretty clear that we are serious about these kids. As a side note, we're having a blast doing it. We truly don't see the limits of where we can take this business. I want to thank you for your time, and I'd like to hand it back over to Kip Fulks, our Chief Operating Officer in the footwear leadership team, who will take you to some exciting growth strategies. Thanks.
Good job, Glenn. Good job, man.
Thank you, sir.
Back up on stage. Great job, Henry and the team. I thought it was important to bring some of the key leadership up in footwear, but also talk about my engagement in footwear. As you can see, the apparel team is well taken care of. They have plenty of strategies to drive growth. Kevin and I came to agreement where I'd take more of a hands-on approach in footwear, really getting deep with our team. One of the things that impressed me the most was the depth of talent we have, the partnerships we have. Standing next to me is Josh Hritan, who runs our team business, previously with Reebok, but he's been with us for five years and now includes all of our team sports, which includes basketball, and Josh has done a tremendous job.
Next to Josh is Jeanette Robertson, who's part of our running team, but specifically looks over women's and kids', who's been in the industry over 10 years, that has done a phenomenal job aligning with Glenn and the team around UA Next. I call the secret weapon, but I don't think he's really a secret anymore. Dave Dombrow is our footwear creative director, who's going to show you some really great things today. It's been exciting to be a part of the footwear team, even though for a year and a half it's reported to me directly. In the last four to six months, it's kind of been day in and day out in the trenches, and I'm glad to be a part of the team, but also help driving kind of the next vision for footwear at Under Armour.
A little bit of the agenda that I wanted to go over is where we've been since 2011 to 2013. What I think and what the team thinks and what Under Armour thinks it takes to win in this category. We have to do it in a unique way. I think you've heard a lot about innovation. It's the common theme today. It really is relentless pursuit of innovation that's going to continue to drive footwear. The next slide is really about showing what we've done since 2011 to 2013. Josh and the team have silently taken 10 points of market share in our cleated business. We've touched on Highlight, we're going to touch it again, but every product at our sporting goods distribution is on fire, and we're super excited about what is going to happen with back to school this year.
In running, we have 60% more consumers wearing running shoes. It's tremendous. Our youth business has doubled. Let's take a look at where it stacks up going from 2010 to 2016. We expect to nearly triple our footwear business. The equation for getting this right, I like to keep it simple. I'm not going to overcomplicate it. It's really about the right price points with the right product and a relentless flow of great design and innovation. Those are kind of the numbers, there's a little bit more behind the scenes on what it takes to win here, and I want to go into it a little bit more in depth. We need to stay true to our brand, we need to build capabilities. We have a great team, we're not satisfied with the team we have. We're going to continue to go out and recruit.
Our design talent is phenomenal. I've been impressed with Dave's design and his team's design ability, I've been even more impressed with their ability to recruit. Attracting great design talent to come to Under Armour. Part of that design talent is weighed by engineering, technical design. This is a craftsmanship. There's no schools in the United States that teach how to build shoes. This is a true dying art. We have to attract and keep and develop engineering talent in footwear, and I'm pleased to announce that we've opened an office in Portland that Henry mentioned. We'll probably have over 20 people by the end of 2014. It's a design and engineering excellence. We're super excited. It adds another dimension to our business. I don't want to skip over, though, that we've added a VP of sales in footwear, too.
We're really excited about Kevin and his leadership coming from Adidas. Being able to talk to the retailers, being able to drive our products. We're looking at every level to bolster our team. Even though we feel like we have a great team, we know that footwear is our destiny to be a head-to-toe brand. Manufacturing kind of is like where the rubber hits the road. You've got to have the partnerships. Some of the largest and best manufacturers in the world are footwear manufacturers with the Pou Chen Group, with Yue Yuen, and we have a corporate relationship with them at the very top. Kevin and I actually traveled overseas and met with the top leadership of Pou Chen. We really are looking at what we've done in apparel, which is integrating our supply chains with the footwear manufacturing.
In some cases, we've decided to convince other folks that aren't footwear manufacturers to get into footwear and really leveraging what we know in apparel into footwear. Dave's going to touch on something special today. We're excited about building the team, looking at engineering and craftsmanship from a new lens, and partnering with the right manufacturers. There's a little bit more what it takes to win. We have to leverage our DNA. We have to obsess over fabrics, over textiles, over fit and function. That is our DNA. You've seen where we've dominated for years in the apparel space. We have to take those learnings and apply them to footwear. We're just starting to hit our stride. We believe we're getting ready to and continue to take our DNA and build it into platforms into footwear. We have to be known for Precision Fit.
We have to be known for the way the shoe feels. One of the important things we need to do is take what we did in apparel with HeatGear and ColdGear. We have to build these platforms and be known where the consumer walks into the retailers already knowing what they want to buy from us. We have it in Highlight. We have it in Spine. Spine's in our third season. It's a lightweight structure technology. Feels great, we're going to make it feel even better in Spring 2014 and beyond. We have to kind of look at the landscape and understand that we have to have differentiation. We're going to have to stand out. It really is the pipeline of innovations that we've been working on, the ones that are in the marketplace today, and the ones that are getting ready to unveil.
This is what's going to lift, it all has to be done through the lens of our traditional DNA, that is really obsessing around what does the athlete need to perform better. One of the people that does that the best, honestly, Josh and the team sports team, working with guys like Tom Brady to ensure they have the great product on field. I'd like to introduce Josh Hritan and the team sports group.
Thank you.
Yeah.
Good morning, everybody. How's everybody doing? Good? Well, I get the pleasure to talk to you about sports that are the core to this brand and to the core of the DNA. I've made the joke a lot over the years that we've got a lot of product managers in football and a lot of product managers in baseball. I assure you that this team that we've assembled, and a lot of them are sitting in the room, are the best in the business. When we spoke to you two years ago, we talked a lot about how we redefine what a cleat is and how we're marching towards market dominance. Fast-forward two years later, there is a ton of exciting things to talk to you about, momentum to report on, and how we really are armored for growth.
I want to emphasize that we build authenticity and credibility on field and on court. We do it through the categories of team sports. I'd like to kick things off with a short video that shows the inspiration behind our game-changing cleat, the Highlight. Pretty good video, right? As you saw from that video, we set out to change the way kids dress on the playing field. We hit lightning in a bottle that season with Cam Newton debuting that cleat on the highest stage in his chase to the Rookie of the Year award. There was so much anticipation and pent-up demand going into football season that the product essentially evaporated in the marketplace. In 2013, the Highlight is a platform that we grew five times, and into 32-plus colors to really entice that team kid.
Anecdotally, we're off to a really good start this football season as well. The Highlight cleat is the number 1 football cleat at Eastbay and is resonating with that alpha male speed kid that we so covet. For everyone that doesn't know Eastbay, this is the catalog that distributes to over 3 million kids every catalog. It was Under Armour's first customer, the bible for the team athlete, reaching millions of high-ended kids every single month. This is a big deal. One of the most telling stories that I'd like to tell you about came from an elite-level high school back in South Carolina back in 2001, before we even launched the product. Their star running back was hampered with an injury all season long. His ankle was severely hurt, and he couldn't lace up and play.
We overnighted him a pair of the Highlights on a Thursday for a Friday night game. He laced them up for the first time an hour before the game, proceeded to lead the team to victory, playing the entire game, rushed for over 300 yards and three touchdowns. The quote that came out of this was that "You've changed my expectations for what a football cleat is," and that's what we're here to do. We also leverage this platform into baseball and lacrosse. Bryce Harper, the most exciting young phenom in the Major Leagues, debuted this unconventional baseball cleat. To raise the premium awareness of our brand for the first time to show our capability that we can connect with that high-end consumer and sell $100 plus metal baseball product. We've got a ton of momentum. We had a fantastic baseball season.
We took additional market share again this season and had the number one cleat for the majority of the season in four of the top six cleats all season long. In addition, sandals and slides, which is a category that my team works on, we are the number one slide brand at Dick's Sporting Goods currently. We've experienced a tremendous amount of growth in football and the baseball categories in the last few years. We have proven that when we push the envelope, combine compelling and relevant innovation with a great look like we did with the Highlight franchise, we win. We'll continue to push this new product stories into 2014 and raise the bar even further and continue to redefine consumer expectations. Again, I just want to emphasize, it is critical that we gain credibility and authenticity on field and on court.
We win with team sports and are naturally getting pulled into categories that we can dominate in. My team is extending our focus and dedication to include basketball footwear. We will apply the same tenacity, the same persistence, the same best practices that you saw from us in a quest for market dominance into cleats, into basketball. We are really excited for this challenge. There's an appetite and thirst for our brand from the team athlete in the channels we already are successful in. This represents a tremendous growth opportunity for us. There is $600 million worth of performance basketball done alone. This is an opportunity where we're just going to attack aggressively over the next few years.
As we maximize efficiencies across all of team sports, we will fully exploit our opportunity with the team basketball consumer through innovative product stories in the right channels, at the right price points, and set ourselves up to be a pinnacle performance basketball brand. I'm hoping when we're here two years from now, actually, I promise you, two years from now, we're going to have a lot of really exciting things to talk about about basketball. At the forefront of our strategy of growth in all of team sports categories will be this maniacal focus of innovation and redefining expectations. As this brand is founded on the principles of making the athlete better, we are in a persistent pursuit for constant flow of meaningful innovations. Innovations that protect, innovations that maximize performance, and ultimately, that are accessible to all athletes.
As an example, looking at the rise of injuries across football, turf toe is a hot topic at the NFL level and below. We sought to better understand the injury, and as a result, our latest technology is known as V-56. This technology is engineered to limit hyperextension beyond critical angles, thus protecting the athlete without limiting performance. At this past year's NFL Combine, this was endorsed by both the foot and ankle and the competition committees as something that's revolutionary. Going forward, this will be a platform we will leverage into other categories as well. In the end, we have a business to run, and as Kip mentioned, we have successfully told our product stories and innovation stories at retail with our athletes, and we win championships and awards with our sports marketing athletes.
A testament to this is the fact that the guy that you just saw, the best football player on the planet, he entrusts us to help make him perform better and to stay safe on the field. We talked to you two years ago about 2 million cleats, 2 million athletes that voted for our brand. We've doubled that in two years. That means we have put over 3 million, 4 million pairs of cleats out in the marketplace. Our ultimate goal is to continually shock and awe the consumer every season as we close the gap towards number one. We are a definite clear number two in U.S. wholesale in football and baseball. We are setting the cadence for the industry to follow. By 2016, we are looking to be the market leader in this space, and we are armored to grow considerably.
Like Henry had said to you guys earlier, this brand was founded on the playing fields and core to our DNA. It is critical that we win on field and win on court to solidify our authenticity. While team sports will continue to grow and be a focal point of our footwear trajectory, the foundation and trust that we have built with these athletes is essential. It's essential as we continue to build loyalty with this athlete and make that transition from winning on field to off field that much easier. With that said, I would like to pass it over and introduce my counterpart, Jeanette Robertson, to talk about our running and next categories. Thank you very much.
Thank you, Josh. Welcome again to our house. For those of you I have not had the opportunity to meet last night, I am Jeanette Robertson, and I lead our women's and next youth footwear categories, and I have the great pleasure to be with you today to talk to you about our running category. I definitely was not here two years ago with you when the team talked about our running category, but I am delighted to be here today to continue that conversation that we began with you. In 2011, we were here to unveil our direction, our brand DNA, and the unique point of view that we were going to take in attacking the, what is known as a very crowded athletic footwear market. In 2011, our focus was on repositioning, rebuilding, and relaunching our category.
As Kip mentioned earlier, from 2011 until 2013, we now have over 60% more consumers wearing our running shoes, and that's huge for us. In the Under Armour fashion, we will not stop there. To date, we have made great strides, not only in getting the consumer's attention, which is huge for us, but also at retail. In the channels that we play, we have been surpassing our competitors, and it's a really exciting point for us. We have a very unique point of view, an extremely highly demanded brand, and an extremely experienced industry team of people who are very passionate about making us win in this category. What are our plans to continue that momentum that we've begun? Our first plan, we're planning to leverage our wins and continue to grow in this category in the future.
Our goal in running is to be among the top three brands in sporting goods by 2016. I know you're thinking that's a big goal, but we definitely feel we have a solid plan to help get us there. We're going to gain credibility with our core authentic consumer. We're going to expand our product lines to continue to evolve the solutions in meeting the unmet needs of our athletes. We're going to build platforms, continuing with success that we're having with Spine. Fourth, we're going to fuel the growth of our youth business. That consumer is our present and our future, and we will keep a maniacal focus in that area. Let's just jump into the plan. First, I talked about gaining credibility.
We both know for long-term growth in the running category, we definitely need to address the specific needs of this high-end technical runner who is very demanding and looking for product that's going to help them perform better. This consumer we call our avid runner. If you think of someone like Chris McCormack, who is a multiple winner in the Ironman, this is the consumer that we're targeting to achieve here. This consumer is seeking product that truly embodies Precision Fit, something that you continuously hear about from our brands. They're looking for the absence of sensation and something that's very lightweight while becoming an extension of their body. Success in driving product for this consumer is essential for the growth of our business in Run Specialty in our international markets. Later, Dave will introduce our newest technology and innovation for this consumer.
Without stealing his thunder, we're really excited to talk about Chris McCormack winning the Challenge Rimini recently in Italy wearing our latest innovation. It's super exciting for us, and we know that we're off to a great start. Next, we're going to focus on our 360 athlete. This is the consumer who truly lives and breathes our brand. We will win obviously both with the avid and 360 athlete. However, for our growth and generating market share and revenue, this is going to be the largest area of opportunity for us within Athletic Specialty and Sporting Goods. We're going to leverage our learnings with successful products such as Spine. We're going to continue to find solutions for their evolving needs through different executions and infusing pinnacle levels of innovation. We will continue to focus on Precision Fit.
However, this consumer needs a bit more lightweight structure and support in their products than our average consumer. You obviously saw Tom earlier and the other athletes in our lineup. We know better than anyone here at Under Armour Running that our athletes run to train, to improve, and to be ready to compete in their sports. Third, you've heard Henry mention this, you've heard Glenn, you've heard everyone talk about platforms and how it's been a crucial point in building our success at Under Armour. In footwear, we're going to leverage that as well. How do we plan to continue to offer the look and feel that our consumer has identified with Under Armour Running? We're going to continue to focus on the platform of Spine and using that as a base to continue to build multiple products to fit that consumer's needs.
Nothing demonstrates the success we're having more than the current Spine Venom that's in the marketplace. We've currently surpassed some of our competitors in the channels that we're selling, and we're already a top seller in the marketplace. It's a great base point for us to start. Every season, you will continue to see that we will take this product to another level with lighter, faster, and evolving other levels of innovation. Over the next 24 months, you will see a relentless flow of product in these platforms. Let's switch gears a little bit. You've continued to hear about how youth is the fastest-growing category for our brand. Who is better positioned than us to meet the footwear needs of this future athlete? Nobody. We definitely are armored for growth in youth.
In team sports and in running, we are currently outpacing our competitors in the retail channels where we do best. In a category that hasn't seen a lot of innovation, Under Armour is taking the lead in fueling innovation to this consumer. They no longer want to be thought of as little ones, as youth, as you saw in that video. They, too, are very savvy and looking for that innovation. If you think about how we've taken that approach with the Highlight cleat, with Spine, and with future technologies, we will continue to differentiate that way in this area. We really believe the energy of our brand is very similar to the energy and desire to win that our consumer in this area embodies, and that swag is exactly why the consumer's choosing our products over others.
Our kid truly believes that our products help them perform better on and off the field. We really create and evoke an emotional connection with that consumer. Let me tell you, as Kip mentioned, I've been doing this for over 10 years, selling products to all of our key retailers, and the response that we've received from our last sell-in for Spring 2014 has been tremendous. We can't make enough shoes to fill the needs of what consumers and retailers are looking for. It is phenomenal. The response that we're getting, our business has already grown over 100%, and we truly believe that this is a huge opportunity for Under Armour moving forward. In athletic specialty and sporting goods, where we're currently selling, we will be among the top 2 leaders in youth footwear by 2016, and we feel very confident that we will reach that goal.
This is huge, we definitely think with the right prices, the right product, and continuing to infuse innovation, we can hit that goal. This consumer, as you know, is our present and our future, and we will remain laser-focused on being their brand of choice, growing with these athletes and continuing to fuel that pipeline. We are armored for growth in youth. Next up, to present our latest innovation, let me turn it over to our brand no-longer-secret, creative genius, Dave Dombrow.
All right. Thank you, Jeanette. I like creative genius, by the way. That's nice. Nice of you to say. All right. Let's get to my notes here. All right. Well, it's good to see all of you again. Today, I have the pleasure of talking about our latest innovation platform, SpeedForm. If anything, you've heard the word obsession so much, I think they stole it from me, because if anything was ever an obsession, this is it. We obsessed over this platform day in, day out, constant. In some ways, I really feel like this is the product, I want everybody to hear this is the product in footwear that we were born to make at UA. I really feel that in my core and my gut, and I think you will too once you see this.
I've always said, anybody who knows me, that we want to leverage our apparel DNA and we want to own fit. What does that mean? I ask all you guys, what does that mean when we say own fit? It's just words, right? How do you own fit if you're making stuff like everybody else in the same place doing the same things day in and day out? You probably don't, right? We're going to take a different approach, right? There's this quote at UA. I'm sure you guys have heard it before. You guys are well-versed with this. "Smart enough to be naive enough to not know what we can't accomplish." Okay? Now, in this case, we had to be smart enough to leave this behind. Okay? That was a big step. We got to leave that footwear factory behind.
We looked at things that embodied performance fit. Things like an F1 seat, right? It's molded to the individual driver, right? All about this custom fit. We looked at things like a rock climber, right? Part of the climbing equipment is part of the climber. It's all about being one. Okay? We looked at things like cycling. I'm an amateur cyclist at best, but I'm sure there's some cyclists in here. It's all about the fitting, right? That's the key to cycling, how the rider and the bike are one. I like to say fit or die, right? Innovation or die. If it doesn't fit, you're going to die. That is how serious we were taking this. That led us to the ultimate in that, which is the Apollo space suit. Okay? You're thinking, Apollo space suit. Not a big deal. What's the connection here?
Well, I think the stars aligned here. Stars aligned, something serendipitous happened, because at this point, huge turning point for us, right? We're looking at this, and we're doing our research, it's like all these proposals are coming into NASA, right? It's like the Navy, did they win the contract? No. Did the Army win it? No. Okay, the Air Force. Of course, it's the Air Force. No, the Air Force didn't win it at all either, right? Here's the great part. It was actually Playtex, makers of intimate apparel and bras. Wait a second. Did you say bras? Hmm. That really got us thinking. Now we're talking about bras. I think you're going to see the connection here of where I'm going. Okay? Hmm. We make a lot of stuff at bra factories here at Under Armour.
In fact, we work with the best manufacturers in the world, period. Together, could we focus on precision manufacturing and reinvent fit? Right? That's a big statement. Could we do it? Remember, we've left that footwear factory behind. Okay. That being said, we start talking about things. Could we create the first ever seamless heel cup, right? Completely seamless from heel all the way to the toe. Never been done. Maybe we could, maybe we can't. Probably we could. Could it be anatomical, right? Could this thing wrap around your foot in a new way, guide your fit, completely new way of how it interacts with your foot? Maybe. New manufacturing might lead us there. Could it be ultrasonically put together like high-performance apparel? Maybe. Ultrasonic. They're not ultrasonic seaming anything at footwear factories. Oh, yeah, but we're not at a footwear factory anymore, right?
That's not a problem. Maybe it could. Ladies and gentlemen, introducing our latest platform, SpeedForm. There it is. Inspired by space suits. Built at a bra factory. Nothing has ever fit like this. I promise. It couldn't. It's never been done. I'm going to say it again. It's never been done. It's a big, big, big deal, okay? I want you guys the major takeaway from my short speech here, we reinvented a new way of manufacturing footwear, okay? Never been done. This is what fast feels like at UA. This is a big deal. This is news, and I want you to watch this. Thank you. I want to thank the team. I want to thank everybody. We're super excited to be a part of today. We wanted to leave you with a few notes. That's what fast feels like.
I think you're going to have an opportunity to try on a few shoes. Please take the chance. It feels great. I'd like to call Tom Schnell up to the stage. Thank you very much.
Hey, guys. Great seeing everyone today. Also thanks for those that are joining us on the webcast today. Can't leave those guys out. I'm Tom Schnell, Director of Investor Relations. Most of you know me. I'm not nearly as exciting as another Tom that was up here earlier, so bear with me. We'll get through this quick. Just a couple quick details for the rest of the day here. We're running a tad behind, so we're going to have a really quick working session here for lunch, not too dissimilar from what we did two years ago. Lunch is going to be served right across the hall. I think more importantly for you guys, as Kevin mentioned earlier, this is the time to explore our showroom.
We're going to open everything up and this is your opportunity to experience everything that we have coming to market, not only this fall, but into next spring. A great team of product line managers, they'll be there as well, that can answer any questions for you and give you all the great details. Also, as Kip mentioned, we have our shoe bar that is going to be opening up with SpeedForm. Please try it on. We'd love to hear feedback. We think this is a pretty powerful product in the marketplace. We'll round people up about 12:55 P.M. and try to get started as close to 1:00 P.M. as possible with a short video followed by Charlie's presentation on international. Any logistical questions around transportation, please come to me. We plan on ending the day right at 3:00 P.M. after Q&A.
If we can get anything logistically settled for you guys through the afternoon. That's it. Enjoy, and we'll see everybody back in an hour. Thanks. Good one
Thanks everybody. Thanks for a great morning session, and we wanted to kick off the afternoon with that video. It's something that we actually did as an inside voice for our team earlier this year. Getting to this point, as we're looking at where the brand has gotten to, there's times where you need to take stock, you need to pull everything together, you need to find who you are. The purpose of that video was to hopefully try to take the first 17 years and not get caught up with constantly patting ourselves on the back, take credit for it, celebrate it, give people the credit where credit's due, but as we said, it's time for us to grab it. It's time for us to look about moving forward. Today, as you've heard, is all about moving forward with some of our teams.
The first way we tried that was we wanted to freeze everyone in here out, and we were selling sweatshirts outside. $250 a piece for the sweatshirts. You can use your gift cards toward that purchase if you'd like. The price may go up if we get to an auction status. Probably that may be a mistake because things are about to heat up here. I've got the great pleasure of kicking off the afternoon, where you're going to hear from international, then a bit of our direct consumer channel, finally, we're going to wrap it up with Brad and giving you the financials and some of the finer detail that'll help within the models as you look at them. First up, it's my great pleasure to introduce Charlie Maurath.
Charlie is someone who joined our company not too long ago, within the last year. I tell you, the ability within a category or I'd say more of a movement for our company, there's probably none bigger than the reliance that we have on taking our brand global. Everything that we talk about, the product categories, men's apparel, women's apparel, youth, footwear, et cetera, it all comes down to how do we get this message outside of the U.S.? As you know, we've got less than 10% of our sales happening from there today, it is our commitment to be a global brand. Our definition of being a global brand is one that means that more than half of our revenues should come from outside of our home country.
We're committed to making that happen, we also understand that that's going to take some time. The good news is that we've got these engines here in the U.S., a business that we believe has plenty of legroom and ability and runway for us to continue to grow. We'll continue to maximize and make that happen, most importantly, we're very fortunate today to have a leader like we have on board with Charlie Maurath. Let me just read a couple of things of some of Charlie's background. I mean, he's a vet who comes to us with more than 22 years experience working formerly at Adidas, where Charlie ran all the Americas, was the SVP and head of Latin America.
He spent eight years while at Adidas, running that Latin American business and taking them from $200 million to over $1.7 billion before joining Under Armour, and of course, doing all of that profitably. You will hear that deliberately from Charlie as well. Four years at headquarter in Germany managing distributors in Europe and Africa. Built the subsidiary in Thailand from scratch, living in Asia for five years. Head of the Nordic region in Europe for five years. Also, he loves sport and understood sport. The opportunity for Charlie to have that opportunity to join our company was something that was very big, and I think he recognized the momentum of what Under Armour had in front of it.
We're very lucky to have Charlie sitting at our executive table and helping us manage this brand from not only being a company of products and innovation, which of course is important and terrific stories, and telling those stories in North America, but taking that story globally. Ladies and gentlemen, Charlie Maurath. Charlie? Thank you, Charlie. Welcome.
Thanks, Kevin, for the warm words. I think I feel already a little bit warmer now already. Thanks for all of you for giving me the opportunity to present to you the international expansion plans for the coming years. I want to say that upfront, for your patience in listening to my presentation in English with a strong German accent. For me, it's a privilege to work for a fast-growing company such as Under Armour and to be part of the international expansion. A company that is fast-growing and where I can combine my passion for sport with my daily work. However, we are also working in an industry that is fast and very competitive. Only the one that is more innovative, faster, and better than the other will succeed, and ultimately win.
Welcome to Brazil and welcome to Rio de Janeiro, the sport capital of the world from 2014 to 2016, hosting World Cup 2014, Copa América 2015, and Rio de Janeiro 2016 Olympics. Brazil and the world of sport have some exciting times ahead, Under Armour will be part of it. This is to let you know that Under Armour will open its own subsidiary in Brazil to be ready for these mega events. You will hear more about this later in my presentation. Talking about sport and our industry. What's the size of the prize? The international sporting goods market for branded apparel and footwear amounts today for more than $200 billion. Out of this, North America represents more than 30% of the branded sporting goods markets, where Under Armour sells roughly today over $5 per capita. Europe.
Europe accounts for more than 25% of the global sporting goods market, followed by China, Japan, the Middle East, and Latin America, and the rest of the world that represents approximately 40%. With the exception of Japan, Under Armour's market share outside of North America is still insignificant. To give you some perspective, in Europe and China, Under Armour today sells less than $0.10 and less than $0.01 per capita, respectively, in China, versus $5 in North America. In other words, there are huge opportunities for Under Armour out there. Let us talk about global sporting goods market and some high-level common consumer trends by differentiating between mature and emerging markets. In emerging markets such as Brazil, Mexico, and Turkey, we foresee a fast-growing middle class with young and affluent consumer that are influenced by Western lifestyle and international brands.
Before 2020, more than 1 billion additional new consumer will start purchasing branded sporting goods as they enter into the emerging middle class. Already today, key industry players generate more than 70% of the global profits in these emerging markets. This development will continue. We have the mature markets such as Europe, Japan, and to a certain degree, the U.S., where we will face a stagnating spending power and an aging population. Please pay attention to this slide. No offense, but Kevin and Kip no longer belong to our young target consumer group any longer. Growth will come from the new mobile generation as well as from older ones, such as Kevin and Kip, who wants to live an active lifestyle. Under Armour's international strategy for the coming years has five building blocks of success.
It's the brand, it's people, it's the operating model, infrastructure, and international expansion. Our presentation today will focus on our brand as well as our international expansion strategy. How do we want to position Under Armour outside of North America? Big question, because our brand awareness today is not the same. We will position Under Armour internationally as the sport performance brand that stands for innovation and for training for sport. It is important to highlight that footwear plays a key role in our international expansion strategy. Our priorities will focus on men's and women's training, running, and base layer. We will sharpen our brand profile internationally by becoming more consumer-centric in everything we do. We will anchor Under Armour with our target consumer and increase brand awareness by prioritizing consumer connection points with the focus on retail, digital, and grassroot activation.
Another important element for expanding and building the brand internationally is a balanced rollout of controlled retail space. I think it's based on what you have seen last night at Harbor East. We will roll out retail specialty around the world with that concept. This allows us to tell great stories to our target consumer rather than selling single products. This includes rollout of shop-in-shops, the launch of a strong Under Armour franchise model, and expansion of a limited amount of owned retail stores in clearly selected markets. In mature and developed markets, we will focus on key account management and strategic account marketing. Here, in my opinion, we can learn and replicate a successful business model that already works well in North America with key accounts such as Dick's in the U.S. and Sport Chek in Canada.
Our international expansion strategy focus on countries that deliver both fast top and fast bottom line growth. How is this strategy built? The international sporting goods market, if we look at it with a helicopter view, outside of North America, is estimated to be around more than $130 billion. Out of this, the top 10 international markets outside of North America represent roughly 60% of the market. The next 14 international markets account for more than $1 billion each. Our international expansion strategy is built to focus on the three biggest market in Asia, Europe, and Latin America. In Asia, it's China, Korea, and Japan. In Europe, it's U.K., France, and Germany. In Latin America, it's Mexico, Brazil, and Argentina. We have an opportunistic approach on the next 14 markets that each represent over $1 billion.
Our planning foresees a cumulative annual growth rate by market between 20%-60% over the next few years. As part of the new international expansion plan, we have also established a new regional setup for Under Armour. Going forward, Under Armour International will work with four regions outside of North America. It's Asia, it's Western Europe, it's Latin America, and what we call new markets. Let us talk about the plans. What are our plans in Europe and what have we done so far? With Matt Shearer, we have put a new European leader in place that has worked for more than 10 years with Under Armour and that has established very successfully Under Armour subsidiary in Canada. In addition to Matt, our new head of sales in Europe brings close to 20 years of European sporting goods knowhow.
Our new head of marketing in Europe has more than 20 years of experience building brands in the region. We have started to retake control of distribution in key European markets. To control Under Armour brand and Under Armour brand's destination, we will gradually convert from the current agent model to our own sales force in U.K., in France, and in Germany. In line with this, we have opened, and Kevin talked about it, an Under Armour U.K. sales office in Manchester City to be closer to the consumer and our key customer in this very important European market. Talking about Asia. Having lived and built a brand successfully in Asia, I'm excited to talk about our initiatives in Greater China with Kevin Astridge, our new leader.
Before Kevin Astridge moved to Shanghai to lead the region, he was heading very successful the outdoor business unit for more than four years. Just to add on this one, every year he has been growing the outdoor business by 35%. Before that, he worked for over 10 years in the fashion industry. Kevin and his new management team have worked out a midterm strategy for the coming years. Our planning for China foresees the opening of own retail stores, you have seen some pictures today already, in key cities such as Beijing and Shanghai, as well as partnerships with strong retailers to roll out franchise stores in clearly selected regions. Additionally, we have recently signed a multi-year exclusive partnership with the biggest retailer, Star Light, in Taiwan starting spring-summer 2014. Japan.
Japan, there's not much to add to this slide as our business and partnership in Japan is extremely strong, and we will see continued double-digit growth in the years to come. We are very happy with our long-term exclusive partnership with Dome in Japan. Today. Oh, my German accent is coming through. Okay. Today, Dome is at the stage and the similar size as Under Armour was in North America in 2005. Of course, we would love to see similar progress than in North America in the future. Dome continues to strongly build the Under Armour brand and our business in Japan, outperforming both the market and its competition. New markets, or what I call our opportunistic approach, or Under Armour's opportunities going forward. I am proud to announce that we are in process to build up Under Armour's own subsidiary in Sydney, Australia.
After transitioning from our existing distributor, Playcorp, we will start with our own subsidiary in January 2014. In addition, we are in conversations with Rebel Sport about a long-term exclusive strategic partnership. Rebel Sport is the biggest sporting goods retailer in Australia today. We will strategically build up own Under Armour retail and franchise stores in key Australian cities going forward. Over the next few months, we will evaluate, in addition to Australia, partnerships for the Middle East and Southeast Asia. Latin America, a region that I know very well and where I have built a strong network and working relationships over my last 10 years. It's a region that is close to my heart and where the sporting goods market will continue to grow. As a first step, we have established our Under Armour regional office for Latin America in Panama.
The management team of our regional office will be responsible to support the business and the growth of the markets across this region. In the last days, just recently, we agreed with our partner in Mexico, ASI Operadora, to transition the existing distribution business and management team into a wholly-owned Under Armour subsidiary that will start in January 2014. You have seen Canelo, the business, and you have seen and heard about Toluca. The business in Mexico is growing very fast, and we are glad that our partner and the complete team in Mexico will join the Under Armour family. Coming back to the beginning of our presentation. Starting spring-summer 2014, Under Armour will have its own subsidiary in Brazil. An important market where we have not been present so far. For our start in Brazil, we have hired the most experienced management team in this market.
Out of the top four senior managers, three have a consolidated sporting goods industry background of more than 55 years. To be quite honest, I don't know anyone of our competitor in Brazil that has a management team that has close to that experience. The hiring of this experienced and confident team in Brazil has been critical to successfully manage this complex market that offers lots of opportunities. At the moment, we are in process to build up the organization, processes, system, as well as a new office and distribution center to start business during the second quarter of 2014. We will be ready, if I'm honest, not really for World Cup 2014 any longer, but for Copa América 2015 and Rio de Janeiro and the Olympics in 2016. Chile.
I am proud to announce another opening of an Under Armour subsidiary for the second half of 2014, Under Armour Chile. For those of you who have followed, this is the fourth subsidiary that announced during my presentation. This subsidiary will start its operation in 2014 with the jersey launch of Colo-Colo. Colo-Colo, for those who know Latin America, is the biggest football club in Chile that we have recently signed. As part of our market entry and attack strategy into Chile, and knowing the Chilean passion for football, Colo-Colo will give us an ideal platform and, towards the trade, a great leverage when entering this interesting and fast-moving market. After we have established this subsidiary, our expansion plan foresees that Under Armour Chile will take over responsibility for Argentina, Peru, Paraguay, Uruguay, and Bolivia, the south of Latin America.
Starting end of 2013, we will have a new head of Under Armour in Chile in place that has more than 20 years of sporting goods experience in Chile, Argentina, and Brazil. Let's talk about the financial ambitions. Our financial ambitions are clear. Under Armour International will grow from today, only 6% to 12% of total revenues from 2013 to 2016. I know for you, this doesn't sound like a lot. I can tell you, it requires, in the next three years, massive growth considering that Under Armour in North America continues growing by more than 20%. I think the next slide is even more interesting, or the next part of this slide. However, in looking at the units, our international business, in reality, is much bigger. It represents 17%, or respectively, 24% of Under Armour's total units. Our international business, in reality, is bigger.
Looking from a different or investor's point of view, this will give us a huge opportunity in the future to convert some of the license and distributors to wholly owned Under Armour subsidiaries, and respectively, grow and accelerate Under Armour's growth internationally. Okay. In summary, Under Armour International has a stair plan of success. In 2013, we organize. In 2014, we optimize. In 2015, we accelerate, and in 2016, we attack. Simple and easy for each of you to remember. What will we do? Very shortly, in 2013, we have established our strategic business plan for 2013 to 2016. In 2014, we will put support function in place and open, as mentioned already, four new Under Armour subsidiaries. In 2015, we will focus on markets that drive both fast top and fast bottom-line growth. In 2016, our mantra will be faster, be better.
We will leverage what we have put in place, and we will enter into new markets. For today, this is the end. The end of my presentation, but the beginning of some hard work and what I call exciting times ahead of Under Armour International. Ladies and gentlemen, thank you for listening, and please let me introduce Henry Stafford and his team, that is leading direct-to-consumer business, Kelly and Chip. Thank you very much.
Yeah, thanks. Yeah.
Awesome, Charlie.
Awesome. We got it. Hello again, everyone. I love Charlie's presentation because he says the word growth about 100 times. We talked about it today, growth, growth, and growth the right ways is what we are stressing. Now we want to talk to you about another key strategy, another key growth strategy of ours, which is reaching more athletes. I'm up here with Chip Adams and Kelly Cortina. We're going to spend a few minutes to talk to you about this initiative of reaching more athletes. Kelly is the leader of our retail business, covering both our specialty business as well as our Factory House business. It's a great time to present this business, particularly after last night and the feedback we had from you all. Most importantly, the feedback we've had for the past four months from our consumers and our athletes.
Chip Adams, our Chief Performance Officer, is up here, and he's going to talk about the charge that he's leading on our website. There are two aspects of reaching more athletes, which we will discuss. First is increasing our penetration in our current distribution, which I will talk about more in a second. Secondly, Chip and Kelly will take you through how we will continue to significantly grow our direct-to-consumer business. All right. Let's talk a little bit about how we are going to increase our penetration in our current distribution. There are two things to focus on. First, category expansion. You heard the teams talk about it today, whether it was footwear, studio, running, youth, men's underwear, you name it. Category expansion in our current channels of distribution will significantly increase our penetration incremental revenue.
We will drive the expansion of those categories in our current channels, and that will be incremental to our wholesale business. Second, this is very important, we will invest in our wholesale shopping experience. What do I mean by investing in our experience? The ability to present key categories, more breadth of assortment, more color, and very importantly, more newness and more fashion. Above, you can see an image of our Dick's Sporting Goods All American shop. By the end of this year, we will have over 300 All American shops with Dick's Sporting Goods. When we spoke two years ago, we didn't have any All American shops with Dick's Sporting Goods. When you add on our other partners, by the end of this year, we will have over 800 shop in shops with our wholesale partners in North America.
Our brand will continue to show up big at wholesale. In addition, from 2014 to 2016, we will more than double our amount of shop in shops across our North American distribution. I want to point out, it is an investment that is showing an amazing ROI. Let's talk about distribution. I want to be very clear on our plans for distribution. In the numbers Kevin talked about with $4 billion, and the numbers you will see in the next presentation from Brad, I want to stress that there are no material plans to increase our distribution at wholesale. However, as always, we are an opportunistic brand, and we will continue to research where our athletes want to shop. We will always explore partnerships to reach more athletes. Our distribution will be driven where our athletes want to find us.
That is exciting to be able to control our destiny in that manner. Let's shift gears now. Our number 1 strategy to reach new athletes is to grow our direct-to-consumer business. We are bullish on our direct-to-consumer business because, number 1, no one can tell our story like we can. Number 2, we are a brand that sets trends. Number 3, and incredibly importantly, we will teach athletes how to dress head to toe. There is no better place to do that than in our own stores and on our own website. Kelly Cortina is going to come up, and she's going to talk about our specialty business. How we see this as a true growth vehicle that will drive revenue and profitability. Most of you saw our Brand House last night, the innovative shopping experience that we will drive and continue to drive.
The ability to tell our story head to toe. A much greater breadth of product that we typically offer in our wholesale partners. Kelly will talk to you about our plans for a new store opening this year, as well as how we plan on scaling this business in the coming years. Finally, Kelly will talk to you about our Factory House business. The investments we are making there in terms of our product offering, our infrastructure, the selling experience, as well as the plans to double our square footage in the next 3 years. That's right. In our Factory House, we are going to increase our square footage primarily by working with our landlords to make our current stores bigger. These stores are currently incredibly efficient. After that, Chip will come up and talk about our business digitally and on the web.
The multi-channel approach we are taking, the shopping experience, and our plans to take that to the next level. I would now like to bring Kelly up to discuss how we will innovate and reach more athletes through retail. Thank you.
Thank you, Henry. Good afternoon. I am thrilled to be speaking with you all today. I have been a part of this great brand for the last eight years. I have seen this brand evolve and grow in many ways, and I am proud to tell you that the passion and the entrepreneurial approach to everything we do is alive and well today as it was the first day I started. After seven years in product creation, I jumped at the chance to join the retail team last year, which appealed to my retail roots with Abercrombie & Fitch, another strong and influential brand. I am very well acquainted with the brand milestones presented earlier today. I am delighted to stand here today to share our vision for Under Armour Retail, a major growth initiative for this company.
In the next few minutes, I will give you all insight to the steps we are taking to build our specialty and Factory House distribution. I always like to give perspective, where we were, where we are, and where we are going. Let us talk about where we have been and how we have grown since your last visit to Baltimore. We have seen continued success year after year, posting very strong comps. Not only are we seeing growth in core businesses such as men's, but we are also seeing growth in our youngest brand platforms, women's, footwear, and youth. We have grown growth through innovation by redefining the UA retail shopping and brand experience in both specialty and Factory House. We have driven growth through innovation by designing and opening the first-ever Brand House in our proud hometown of Baltimore.
We have driven growth through innovation by making key investments to our retail organization in the areas of talent, product, systems, and operations. We have also grown through reaching more athletes. In total, we are reaching 14 million more athletes annually since the last time we spoke. We have added 32 Factory House stores, and we have almost doubled our number of stores in California. Over the next three years, retail will innovate faster, spread our reach farther, and grow the business bigger than ever before. It all starts with specialty. Under Armour specialty stores will always be the most current and best expression of our brand. They will introduce what is next in apparel, accessories, and footwear. The message I want you to leave with today is that Under Armour is committed to a clear vision for specialty retail that embraces our ambitions as a growth brand.
The UA Brand House concept is founded on three things: innovation, specialization, and localization. As you experienced last night, and as illustrated in some of these images, we have transformed the UA shopping and brand experience into a replicable model that embodies our DNA as a brand. The Brand House delivers pinnacle, innovative, and localized products every six to eight weeks. In fact, the product you saw last night was just set last week as part of our June 1st summer set. Already, customers are rushing to the store to check out new colors, prints, and graphics in men's, women's, and youth. You may have noticed swimwear, a newer product category for us, which is creating a lot of buzz. You could not have missed our commitment to innovation, as demonstrated with the Armour39 station out front and our footwear storytelling.
I know you all noticed our superhero Alter Ego statement of men's and boys' mannequins. I think we all saw empowering athletes is a lot of fun. Retail is where all the product vision comes to life. We are teaching athletes how to dress head to toe, and we are getting traction with the 25- to 40-year-old athlete. Additionally, the Brand House connects our headquarters teams with athletes, which keeps us current, and it inspires us to innovate. As you observed last night, our teammates are specialists, and they are truly the trusted resource for our athletes. In fact, our store teammates download our merchant teams daily on product feedback and customer requests. Our digital marketing calendar alerts customers of things like run clubs, Workout Wednesdays, athlete appearances, just to name a few things. The Brand House is also a forum to learn fast.
Mentioned by Henry, this destination improves our partnerships with wholesale to fulfill our brand vision at retail. Through visits and tours, we are better able to inform wholesale partners on trend and merchandising vision. Establishing a new distribution does not happen overnight. We are being thoughtful and calculated with our approach in the next 18 to 24 months to ensure we build a sustainable model. As many of you know, we are under-penetrated in key markets like New York, L.A., Chicago, home to some of you. Our strategy is to target high streets and premium malls, which fill in the gaps across these influential markets. As a result, we'll be reaching new athletes between the ages of 25 and 40 who have limited access to our current distribution. This strategy will give us greater access to key influencers, heightening brand awareness and global exposure through these markets.
Over the next 18 months, we will continue to test and learn as we grow to six stores. We will strategically expand from Baltimore. Our focus in the near future will be on the East Coast and on New York. However, we will always be opportunistic with our real estate approach. Ultimately, we are positioning ourselves for a strategic and profitable rollout by 2016. As many of you asked last night, "What's your next step?" We have an exclusive update for you today. I am very proud to announce that we are moving beyond the comfort of our own backyard. We will be opening our second Brand House in November of this year at Tysons Corner. We'll scale our high street model to Tysons Corner to ensure we best approach a premium mall location.
The store will maintain all Brand House design principles, the specialized shopping experience, and our customer service model. Product categories like footwear and women's will continue to be a focus, but the approach to marketing and localization will be nuanced to a broader demographic with unique shopping patterns. You all know, Tysons Corner is one of the top 10 shopping centers in the U.S., and it's a great partner. It's home to several first-to-market new concept stores such as Microsoft, Apple, Madewell, L.L.Bean, and American Girl. What you may not know is that this is prime real estate. There will be a new Metro stop from D.C. and Dulles, which will drop customers off near our store, and our reach will continue to expand.
In six short months, we will have a new home, and we'll be reaching many more consumers, which ultimately will make both our athletes and our brand better. I'll transition now to our more established retail channel, Factory House. Specialty clearly brings new opportunities, but what you must know today is that the low-hanging fruit in our Factory House channel will drive significant growth over the next three years. We have room to grow, and our landlords want us to grow, and we are working together to make sure UA reaches more athletes with less risk. A few details I want to make sure you hear today. With the evolution of our brand, we have seen tremendous category growth, and we need additional selling space. We are aggressively expanding our door size, and the good news is that it will not negatively affect dollars per square foot.
In the past, we relied on new doors to fuel growth. Whereas now, as you can see, we are focusing on expanding the size of existing doors. In 2016, one-third of our growth will come from existing doors and proven markets. We'll upsize 50% of our doors by 2016. As Henry mentioned, we will be doubling our total square footage across our fleet from 500,000 square feet earlier this year to over 1 million square feet in 2016. We will also still target new territories, new geographies, so there isn't any cannibalization with existing doors. The message for you all today is that Factory House will continue to grow. In addition, we are making our footprint more efficient and productive through four key investments. In the past 12 months, we have invested in leadership.
We have added five executives with industry experience to lead and build our team for future growth. Two, we've invested in systems. We are investing in our infrastructure, which will pay off dividends in 2015 and beyond. Three, we are focused on elevated product. We have made significant improvements in planning as an organization over the last couple of years, and we are still targeting between 70%-75% of made-for-outlet product penetration with the potential for that to grow. We've built a flexible model that will allow us to answer organizational needs. Four, operations. We are hyper-focused on speed to market, and through maximizing real estate and updating our store fixture design, we are increasing selling floor capacity by 20%. This team is very focused. In conclusion, the message today is that between our Factory House and specialty channels, we are armored for growth in DTC. Thank you.
I will now pass off to Chip Adams, our Chief Performance Officer and leader of our e-commerce business.
Thank you, Kelly. Hi again, my name is Chip Adams, and I've been involved with the company actually for the last 10 years. First as the institutional investor prior to the company going public in 2003, and board member, and most recently, about 18 months ago, coming back to Baltimore, to work with the management team and the company as a full-time member of the team. I heard Leanne talk about it being an honor. I heard Charlie talk about it being a privilege, and I'll just give you 30 seconds on how I feel about that. Sam, you said at lunch we had a great group of investors talking about the thread of Under Armour making all athletes better. Well, from Kevin and Kip, the founders, down to our 22 to 23-year-old rookies, making all athletes better translates into making all products better.
It translates into making our process better from supply chain to IT. It translates into making each meeting better. It translates into these 23-year-old kids to the senior executives wanting to make themselves and ourselves better every day. I'll tell you, for me, that is why it's an honor and a privilege because it's making athletes and ourselves better every day. It is a real honor and privilege to be here. Let's talk a little bit about e-commerce since e-commerce has been reporting to me for the last few months. E-commerce is and will continue to be an extremely important growth driver for the company. You can see on the chart between 2010 and 2013, that it will grow about 35% compounded annually. We also know that e-commerce as an industry continues to grow as a percentage of retail sales.
We know that mobile is becoming a preferred device. We know that kids are driving everything social, from Pinterest and Facebook to Twitter. I can tell you from firsthand experience, the technology that allows people to shop and share so that others can vote in their shopping experience, or that kids, my five, can shop and share their shopping cart so that I can vote in their shopping experience and then maybe pay for their shopping experience. There is a lot of technology that is driving e-commerce today. The point is that our vision at Under Armour is not to take advantage of these trends. It is to drive these trends because we are a growth company, we are an innovator, and we will innovate to drive the most innovative experience for our customers to experience our site.
What are the pillars of driving revenue and profit growth and driving traffic and driving community? There are two things. We've talked a lot today about innovation, and innovation means two things to me. It means capturing the innovation of our products by staying close to the people who develop them. It also means innovating in the way we tell our compelling stories on the site. Innovation capturing and telling is a key part of how we're going to drive our business. The second is integration. You heard about innovation from Kip. You heard Henry, Leanne, Gwen, Glenn all talk about our products. The integration of our e-commerce team, the people who translate that, need to and are now sitting close to all of the leaders of product and marketing, because that's where the soul, that's where the ideas, that's where the language of those innovations is born.
It's also born in the store in Harbor East. It's born in the people who sell. How we integrate this e-commerce engine, the people, to capture the spirit of each of the products, is critical to our success. Innovation and integration. When you look at this slide, Henry talks about expanding the reach of our community. The growth in revenues is one thing. Look at the growth in the number of athletes. 40 million athletes represents 40 million unique visitors to our site in 2013. We expect that by 2016, the number of unique athlete customers visiting our site will be approaching 100 million. Let's talk about the business model that gets there. You can think of e-commerce, and you all follow e-commerce, in a very simple way. You can drive traffic, bring visitors to the site.
You take those visitors, and with compelling copy, imagery, and product, you convert visitors into buyers, and you then convert those buyers into buying more of what they want, not pushing the product, but creating a place where they want to buy more product. Traffic, conversion, average order value. Let us talk first about traffic. I'm going to use the February, March innovation brand holiday, our corporate marketing holiday, to talk a little bit about how we integrated and innovated to drive traffic. First, we had product stories. The Armour39 was one, Spine Venom was another. The third was the I Will campaign and galvanizing around the I Will campaign. The company had galvanized around these three ideas.
E-commerce took Armour39 and explained to people in a way we could only do either in our store or on our site, why willpower and measuring your willpower in a workout is more important than measuring heart rate. Our ability to translate Armour39 into the benefit to the consumer is what drove compelling conversion, compelling traffic. This is the homepage. It also was the email. What you see is how strong is your willpower was the call to action for people to try to understand it. The result of this campaign of integrating the marketing was that we drove over 1 million additional visitors to our site in the first quarter than we did in 2012 for the first quarter, that was 20% higher, 20%-25% higher than the plan for that same period.
Driving traffic was a very successful effort of both innovation and the integration of the teams. Conversion. Conversion is a function of a few things. Having great product stories to tell, but also how we tell those stories. Again, how the merchants then talk to the e-commerce team to talk about how we compel people to feel what it means to have Spine Venom, what it means to have our ColdGear, what it means to have the Armour39. The way we describe those products and the way the power of those products comes across is what turns visitors into buyers. The other piece of this, which has been something we've been improving every year but has been a significant improvement this year, is having inventory, every size for our most popular products.
A great example of that, you've seen Alter Ego. I'm going to show it to you again, but you look at the homepage and the web version of this to transform yourself with that imagery causes people to want to click on Alter Ego to go deeper to understand what is Alter Ego all about. The product was compelling, the story was compelling, the conversion was compelling. Alter Ego, this one product, became the number one selling product for the entire first quarter of 2013, though it was only sold for the month of March. The other thing about conversion before I move on is that conversion for us, this inventory and fulfillment and part of what we've used in terms of technology and execution, we've now moved to have over 95% of our most popular styles in everybody's size. That was 85%-82% last year.
Just that simple movement of 82%-95% inventory on most popular sizes also drives significant conversion. Let me move to average order value. Average order value is traditionally not a metric that moves. If you know e-commerce, you know from year to year, 20 million-30 million customers, the average amount people buy stays about the same. At Under Armour, over the last six months, there's been a dramatic increase in the average order value. Why is that? Let me show you the bottoms bar feature that our women's merchant team and our e-commerce team came together to do to create an average order value that was significantly higher than historically. On the top, you look at the colors, you look at the picture, you look at the imagery.
A far different image than you might have seen in the last couple of years about women and Under Armour and online. Compelling imagery. You look at the women's bottoms style guide. You look at the simplicity of that style guide, which what did it do? It drove women to the style they wanted for that particular occasion. There's no more randomness in that. By driving people to what they wanted, it actually drove them to a higher priced item because that was the one that actually fit their occasion. Lastly, shop the look. It's something that Kevin has been talking about for the last two years. Henry's been talking about it for a long time. Under Armour needs to tell people what to wear. Dictate, no. Tell them what to wear. They can buy what they want, but we have a point of view.
This shop the look caused our women buyers to not only buy the bottoms, but to buy the top and to buy the accessories. The combination of the imagery, the simplicity, and tell people what to wear, increased our average order value, not just for the women's, but for the entire e-commerce, by over 12% in the first quarter and year to date. It's an extraordinary improvement in average order value. Again, when you just come down to it, you're bringing people to the site, you're converting them, and you're driving more dollars because you are presenting a more compelling case for each product. What about the future? If 2013 was all about execution, bringing our teams together, integration, and understanding the innovation of how to use it, 2014-2016 is inspiring Under Armour athlete customers every day. What does that mean?
It means taking a site that is a very good, strong shopping site and making underarmour.com an iconic brand experience. What does that mean? It means videos that are the right videos to explain our products, the short videos. It means longer videos that can drive the passion of our brand for our new product introductions. It means places to go where our kids can upload their own pictures when the UA Next is showing their new ideas and they're wearing their Alter Ego. It's engaging our customer in a more than a commerce site, but an iconic branding site. Number one. Two, dramatically expand the UA community globally. As I said, 40 million people will visit our site this year. 40 million people really represents and the e-commerce revenues is about 9% of Under Armour business is done online.
If you think of the best catalog retailers, they can be closer to 35%-40% because of their history of developing files and customers. We see no reason why we can't take the passion of our customer and to find ways to get those 40 million people to visit to become a significantly greater part of the UA community. Serving our most loyal customers. The passion of this brand, the passion people have for wearing it, what the logo means. We do not yet have a loyalty program commensurate with the passion of our brand. By the middle of 2014, we will have a loyalty program that not only rewards our most loyal customers but involves our most loyal customers in getting the word out. Lastly, omni-channel. People all are talking about omni-channel.
Kelly, we're working together, Henry, in our own store to make sure that if you're in the store, we're never out of stock. If it's not on the rack, it can be at your house the next morning at 10:00 A.M. It can be picked up at the store. There are many ways to engage omni-channel. We're going to start with our own retail, and then we're going to be working with our partners in wholesale to make sure that any customer walking in is never out of Under Armour. Again, the long-term vision for e-commerce. Today, it is a strong site. It integrates the company well. It's 9% of revenues. As we look forward to say, could it be 25% of revenues like it is at some of the catalog retailers?
We see absolutely no reason that we can't have e-commerce be a substantially higher percentage of sales in the future as we go forward. Thank you very much. Now I'd like to introduce Brad Dickerson, our CFO, to wrap it up.
Good job.
Hey, thanks, man. Thanks, Chip. Thanks, Kevin, also for that most unique way to introduce me earlier today, which I think inadvertently gave me a promotion, but I wasn't quite sure. Chip just took away that promotion in less than five hours, that was the shortest tenure of a CEO ever. It's okay. Good afternoon, everybody. Down to the last presentation here before we leave some time for some questions. Our teams have walked you through updates pertaining to our five growth drivers today, let's take a look at what it all means from a financial perspective. We always start this conversation with a little perspective on where we've come from and our visibility in the current year, our scoreboard. Our company generated $281 million in net revenues during our IPO year of 2005, and we crossed the $1 billion mark in 2010.
Hitting this level set the basis for our financial targets at our last Investor Day in June 2011, where we indicated that we would double that 2010 level to $2.13 billion. Based on the midpoint of our existing 2013 guidance, we remain well on track to surpassing that goal at $2.22 billion, equating to a CAGR of 29% since our IPO and 28% since 2010. On the profit side, we more than tripled our operating income from $36 million in 2005 to $112 million in 2010, while establishing a 2013 target of $255 million at the last Investor Day. At the midpoint of our 2013 guidance of $256 million-$258 million, we expect to deliver on that target. Importantly, we are achieving our recent operating income goals at a higher CAGR than sales or nearly 32% over the past three years.
You've heard all the previous presenters discuss 2016 targets. You may be wondering why 2016 is the year we chose. The reasoning behind this is that it ties directly to a new internal process we have around planning our business. This process, nicknamed internally 3YP for Three-Year Planning, is an alignment across all functions of our business, from strategic planning to finance to product sales and marketing, followed by supply chain, IT, and all other back-office functions. This process is a top-down and bottoms-up approach at looking at our business, defining our expectations, and most importantly, aligning resources for three years out beyond the current year. We felt that linking our Investor Day discussion with this internal process was an obvious approach. What will Under Armour look like from a financial perspective through 2016? Starting with the top line.
As Kevin mentioned earlier today, we expect to reach $4 billion net revenues in 2016, representing nearly a 22% CAGR from 2013 and continuing to deliver our long-term objective of 20%-25% growth. With this target, we wanted to provide a little more insight than usual on what factors have been driving our business and how that composition is expected to change over the next few years. First, looking at our product categories: men's apparel, women's apparel, youth apparel, footwear, and accessories. In 2010, our business was largely dominated by men's apparel, which accounted for over 60% of apparel sales and 53% of our total business. While the three-year CAGR for men's apparel is expected to remain over 20% through 2013, several factors impacted the overall mix of the category. First, we have seen growth of closer to 30% from women's apparel, youth apparel, and footwear.
Second, we brought our hats and bags business in-house in 2011, which brought the accessories category from 4% of total revenues to 10% in 2013. As we move to 2016, consider the opportunities that our apparel team highlighted earlier today. We see the opportunity for 10 platform categories, each surpassing $100 million of revenue. Even with men's posting an expected strong double-digit growth, women's and youth are expected to continue to outpace, with women's increasing to 24% of total net revenues and youth 12%. New innovations like Charged Cotton, Storm, and Infrared will enhance many of these categories and could each factor into $500 million of product. Importantly, none of these innovations existed in 2010.
Our 2016 growth algorithm consists of healthy growth remaining in men's apparel, continued outperformance in both women's and youth, footwear targeting $600 million to nearly 15% of our total business, and accessories and licensing growing roughly in line with our overall results. Looking at how our business is evolving and the expected 2016 product mix compared to 2010, you see men's apparel going from 53% of our total business to 39%. This is due to other categories outpacing men's, even though the expectation is that men's will have very healthy double-digit growth in the period. Women's apparel is expected to increase from 22%-24% of total net revenues. In looking just at the apparel business by itself, women's will go from 27% of total apparel in 2010 to 33% expected in 2016.
Youth will grow from 9% of our net revenues in 2010 to an expected 12% in 2016. Again, looking just at the apparel part of our business, youth will represent 11% of our business in 2010 and is expected to be 16% of our apparel business in 2016. Footwear growth from 2010 to 2016 is expected to outpace our overall business and increase from 12% of net revenues to 15% in 2016. Looking at a similar analysis within our sales channels. We have broken down our business here into our top three North America wholesale accounts, all other North America wholesale accounts, total direct-to-consumer business, and international. In 2010, our total North America wholesale business drove over 70% of net revenues, with our top three accounts contributing 31% of the total, direct-to-consumer 23%, and international 6%.
As we move through 2013, the most significant change has come from our direct-to-consumer business, which expanded to approximately 29% in 2013, led by Factory House fleet that is expanding from 54 doors to approximately 112 by the end of this year. From there, our expectation through 2016 is that international will show the most meaningful mix change, doubling from 6% to 12%, as Charlie said earlier, and led by many of the initiatives he and his team are implementing. What we feel is just as important, and perhaps still underappreciated, is that we expect double-digit growth continuing within our top three accounts, supporting our belief that we have ample runway in what many believe to be our most mature distribution.
Looking at the broader time horizon of 2010 through 2016, you see that direct-to-consumer grows from 23% of our total net revenues to an expected 31%, international to the previously mentioned 12%, all while our top three and all other North America wholesale continue to post impressively strong double-digit growth. Moving on to gross margins. Many of you heard us discuss our belief that we should be a 50% gross margin company, leaving just over a 200-basis-point gap from where we closed 2012. We see four large factors that are expected to dictate our progress over the next several years. Two consistent and opposing forces we've continuously discussed have been our higher-margin DTC business and the lower-margin footwear business. These stories should hold true going forward, although with a slightly different flavor. In DTC, the overall sales mix should be modestly positive as the channel approaches 31% of net revenues.
We also expect the channel to become more profitable overall as e-commerce growth outpaces Factory House growth, and the made-for mix at outlets normalizes in the 70% range. Specialty growth should also become a positive factor, though the magnitude will likely be limited given these stores remain a small piece of our revenue picture over the next several years during our testing phase. Footwear margins currently are holding in the low 30% range and will remain well below the overall company, even as the category scales. As we stated in the past, we have the ability to mitigate the expected footwear sales impact and gradually improve footwear profitability as we build scale, build supply chain efficiencies, and gain momentum in non-fitted categories, particularly running.
The ultimate impact of our international efforts on gross margin is difficult to pinpoint, given it will be dependent on how we establish, grow, or change business models in each country or region. Charlie will walk you through some of our current strategies to bring our brand to more consumers globally, some involving the establishment of our own subsidiaries in places like Brazil and Mexico, while others include new or expanded distributor models. Assuming no other significant changes to existing licensing or distributor models, we expect core international gross margins will improve given some of the subsidiary additions. However, even considering these gains, consolidated international gross margins will remain below domestic levels given the mixture of non-controlled distribution models. Factoring the higher growth levels expected in the upcoming years, we expect international's net impact to gross margins to be slightly dilutive through 2016.
On the supply chain side, we are targeting improvements to overall gross margins. Supply chain itself is a big topic, so let's take a few minutes to discuss some relevant topics here. Obviously, on the supply chain side, Kip and Jim Hardy and their team are the experts here, so I'm taking a little bit of liberties to go through some of the top initiatives they have. We're really proud of some of the improvements they're making in the supply chain overall. It's an area we need to continue to develop core competencies in people, process, and systems in order to get ahead of our global growth ambitions.
However, our efforts to build a world-class supply chain will not come without some of the underlying challenges, such as wage inflation, particularly in Asia, an expanding international business, continued needs for IT infrastructure enhancements and integration, the ongoing need for supply chain talent acquisition, and the overall challenge of supporting a brand growing at +20% annually. Our focus will continue to be the balance needed in three key objectives. The balance of effectively meeting demand while efficiently managing supply. The balance of improving costs and margins while keeping our high-quality standards. The balance of building a longer-term effective supply chain while managing SG&A and CapEx in the near term. There are numerous initiatives and projects the supply chain team is and will be undertaking to meet these objectives. Four key objectives that will have some of the largest impact are presented here on the screen.
We are enhancing our demand and supply planning system with the implementation of Logility. This system will provide the ability to buy to changing forecast requirements and provide better visibility to vendor projections. In addition, we'll be able to direct inventory to a multi-node DC network to better allow for regional distribution. Our global distribution house footprint initiative will enable us to build scale and leverage costs over the longer run. This will enable us to invest at the right level for growth closer to needs, and also give us the ability to utilize satellite DHs or 3PLs to optimize our regional market growth. Utilizing the visibility we will get from our three-year planning process, we can plan capacity and onboard new quality vendors to support anticipated growth in an effective manner.
Through multi-echelon planning, we'll be able to optimize our greige, trim, and yarn commitments to significantly reduce lead times, while also optimizing for the next levels of finished goods inventory across our network. What does all this mean? We'll improve fill rates from a current level in the low 80s to a targeted 95%, which in turn will help maximize revenues relative to existing demand, along with supporting our changing channel mix and international expansion. We will continue to stabilize our inventory turns at a rate of three times in the near term. Upon seeing success in our fill rate goal, we will then target slow improvements to our inventory turns, aiming to grow inventory at or below revenue growth while maintaining high quality of inventory.
It is important to note that our expectations to get to the higher end of our turn target of 3.3 times will be dependent on us continuing to see success in the achievement of the fill rate goals throughout the next three years. Direct supply chain impact to margins should be favorable by approximately 25 basis points each year as cost savings, strategic pricing, and design dynamics more than offset general inflation expectations. We will continue to build the foundation and infrastructure needed in people, process, and systems to support well beyond the expected $4 billion 2016 business by improving speed to market, using technology as a weapon, and focusing on quality. We have a lot of work to do to accomplish these supply chain goals, we are confident in Kip, Jim, and the team that we are putting the right pieces in place for success.
This success will be instrumental in dictating our gross margin path over the next few years and building off the 48% or so base we have seen the past couple of years. Combining all gross margin factors I just discussed, we currently expect to get approximately halfway to our longer-term 50% gross margin target by 2016. Turning to the investment side of our business in SG&A. Continuing to make the right investments is paramount to our long-term global success in delivering the type of top-line results you've come to expect from Under Armour. As you probably know, marketing expenses for Under Armour consist of three primary buckets, media, sports marketing, and retail marketing. We will continue to balance these dollars against relevant opportunities in the market.
Media will continue to center around the brand holidays that Kevin discussed this morning, clustering our expenditures to be more impactful on the global stage. Sports marketing will continue to balance our heritage of making $1 spend like three, while continuing to activate our larger assets like Tottenham, while also adding new strategic assets as the Coca-Cola deal in Chile, as Charlie talked about earlier. Retail marketing ensures we are telling the best possible stories around our product, our innovation, and our athletes. We'll continue to invest to elevate our consumer-facing proposition with our great partners. While we remain nimble to take advantage of opportunistic brand enhancers, we generally expect that marketing will grow in the same range as our net revenue growth through 2016, remaining near the 11.2% of net revenues level in 2012.
Selling expenses are primarily tied to our efforts in the direct-to-consumer channels, Factory House, specialty, and e-commerce. Factory House is transitioning from a unit growth story to a footage growth story as we migrate the fleet to larger footprints in the upcoming years. Specialty will be incremental the next few years as we dial in a model or models that potentially can be deployed on a broader global basis longer term. E-commerce investment will also continue to help unlock the potential of this channel, another important vehicle to building the brand globally. We generally expect growth in selling expenses to track to our overall growth trends in our direct-to-consumer business. Product innovation and supply chain, a broad category of expenses, and one that is expected to be the primary area of deleverage across our SG&A spectrum in the near term.
Just as our success story today is being driven by some of the investments we outlined at our last Investor Day, the building blocks to our growth through 2016 and beyond need to be established well in advance. As you hopefully have seen today, a key area of investment will be around innovation. Whether it is fostering external relationships with great local companies like Lockheed Martin, building processes where we are viewed as a key resource for entrepreneurs, or magnifying our internal efforts to help build that defining product that we believe is still out there. Two other broad areas will also be in focus, creative talent and infrastructure. We are increasingly looking to attract talent in areas that are already hotbeds for given categories, while establishing a physical presence in those markets.
The focus on these global investments will be on attracting design talent, engineers, R&D experts across all of our product lines. Our infrastructure investments will center around our global expansion as we work to align offices, IT, supply chain, and other functions. Some of these initial investments will precede corresponding revenue streams, though in the case of international, may prove to be additive to contribution margins toward the tail end of our 2016 window. We will also need to be cognizant of supporting our existing domestic business as it approaches $3.5 billion in 2016, and see the necessary need for added distribution capacity. Finally, on corporate expenses. The consistent theme of leverage we articulated in the past should continue as most of our back-office functions and related costs will grow at a slower pace than our top line.
However, this leverage in corporate is not expected to offset some of the other aforementioned investments, and we expect overall SG&A to moderately deleverage through 2016. Wrapping it all together on the P&L, our financial goals are to reach $4 billion in net revenues by 2016. This would mean generating nearly as much incremental top line between 2014 and 2016 as the company amassed in total in 2012. Pretty impressive stat, we feel like we are just getting started. From a bottom-line perspective, we are targeting an operating income in 2016 of $480 million. What this means is that we remain focused on getting better. Growing operating income faster than top line without cheating the critical investments needed to support our long-term global endeavors. Our top-line CAGR of nearly 22% and our operating income CAGR of 23% remain well within our long-term target range of 20%-25%.
Taking a quick look at several items outside of the P&L, inventory turns, capital expenditures, and cash. Regarding inventory turns, while our turns have been a bit more volatile than the annual snapshot here would indicate. As I stated previously, we're working to stabilize and start improving turns up to a potential rate of 3.3 times. Again, any improvement we make will need to balance the needs and challenges of building our global footprint, and achieving our previously outlined fill rate goals. We will target 3.5%-4% of net revenues for capital expenditures as we continue to support our top-line growth, begin building a global retail footprint, enhance distribution and logistics, and invest in how we look to the consumer with our great wholesale partners.
Our cash position will continue to grow, and we currently see cash levels of approximately $700 million by 2016 compared to $342 million last year and just over $200 million in 2010. This obviously assumes the general operating capital targets I just outlined with no significant uses from non-operating cash items. As we wrap up the presentation for the day, I'd like to thank you for your patience and attention today. As you can see, all the management team here at Under Armour is extremely excited about our abundant opportunities through 2016. Perhaps equally important, our ability to keep laying the foundation for longer-term growth beyond 2016. I'd now like to welcome back up Kevin, Kip, and Henry, who'd be happy to start taking some of your questions. Kevin, Kip, and Henry?
Good stuff, Robbie. Great. Get them live. We got microphones in the audience. We'll do about 20 minutes of Q&A, and have a little wrap-up, and then get everybody out of here. Good day. Right in the front. All right, let's fire away. Leave the pleasantries for later. Go ahead.
Hi, Kate McShane, Citigroup. My question really is around the CAGR that you told us today. It seems like with the $4 billion number, I'm calculating a 20% CAGR over the next three years, which is very impressive, but seems to be at the lower end of your 20%-25% long-term range, and certainly below the 28% you've done the last three years. I wondered if you could highlight at all where you could be being conservative with this new target.
I think it's important to note that some of the areas that we're looking at growing the next few years are coming from areas that maybe traditionally weren't big growth areas for us. A lot of the team's time and effort really in the international front and the footwear front here the next three years are going to be really critically important to us, not just through 2016, but also beyond 2016. Areas like specialty retail. Some of these areas are important longer-term growth drivers for us that we're going to put a lot of time and energy around in the nearer term. Again, not necessarily saying that these are a huge part of our growth the next three years, although they are an important part of our growth. They're more foundation-laying for maybe longer-term beyond 2016.
I think it's an important balance here of saying there's a lot of things that we could do, whether it be top line or bottom line, to maybe have the top line look at a faster pace of growth or the bottom line maybe look at a faster pace of growth. I think it's really important that we balance the time we need and the resources we need to not only deliver on 2016, but probably more importantly, deliver on beyond 2016. A lot of this is just about pacing ourselves and doing the right things for the long term, not just the next three years.
All right. It's clear, whatever Brad did say on SG&A earlier as well, I think we'll probably take a couple pennies and put it toward our HVAC systems here. We'll make sure we got a good environment. Beyond that, I think we're very bullish about our growth. We believe in the company. We believe in the growth engines. We've been fortunate that we've got this sort of five-pronged approach. Men's apparel, women's apparel, footwear, international, and direct consumer. Fortunately, we felt growth really not driving just from one, but from all of them. To be fair, we've had some that we've been investing in maybe longer than any of us would like, but just understanding that's the business.
There's not a book written on exactly how to do this or how long it will take, whether it's entering new market product categories like footwear, new distribution channels like entering the mall, or new geographies like going to some of the places that Charlie spoke about. We believe that we're prudent with the outlook that we've provided. That we've certainly got some lottery tickets in there, we're also very measured, I think, in our approach, and that understanding that something's going to work and something's not going to work. Within that balance, I think we want to make sure that we can deliver and have the confidence to speak about the math that we put in front of you and say we feel good about our ability to achieve the marks that we put out there. Robbie?
It's coming right now.
Yeah, go ahead. Why don't we raise our hands who wants the next question? We get mics in somebody else's hand afterwards. We don't have to wait.
Thanks. Robert Holmes from Bank of America Merrill Lynch. Just to follow up on Kate's question, the growth that you put out there for us, is it pretty consistent year-to-year, or I'm hearing about four new international offices in 2014 and a lot of new initiatives in footwear, et cetera. Should we be thinking that maybe it might be a little slower near term, and then you get a bigger bump in 2015, 2016?
Yeah, I think from a modeling perspective, assume a relatively consistent pace the next three years, I think, in general. It doesn't mean you won't see a little bit of maybe a plus or minus year-by-year, but I think in general, anticipate that growth to be relatively consistent.
I'd say, with 14 quarters now of 20-plus % growth, that's a great number and statistic, but we also recognize that we're concentrating on the 20%, 25% on an annual basis. We may have some ups and downs. We want to make sure that everyone is prepared for that. That we're certainly not guaranteeing anything as much as we feel very good about the outlook on an annual basis, and that we'll stay committed to that of delivering on an annual basis. Any of these international markets opening up these subsidiaries, distributors in these markets too. One thing that we've learned from 14 years in Japan, from seven, now eight years in Europe, four years in China, is that these things are going to take time.
The global market, it's vast, and that's why what makes the opportunities of direct consumer, our apparel business here, and the domestic things we have going on that allow us to fund and continue to invest on a longer-term basis and heading some of that other direction as well.
Great. Thank you.
Thanks, Robert.
Pass it to Jim.
He's got one right here.
Okay. Go ahead.
Go ahead, yeah.
Hi. Matthew Boss, JP Morgan. From an EBIT margin perspective, you outlined 90 basis points of gross margin offset by the SG&A deleverage. Should we think about flat EBIT margin over the next three years? Is it down? What's the best way to think about that?
If you look at our current EBIT margin coming out of last year around 11.4%, I think if you did the math on the $4 billion and $480 million, it's about 12%. I think our commitment here is, like I said in my prepared remarks, is to get a little bit better every year. I think that's an important thing. An important part of our culture is to keep improving and getting better. We have to balance that, though, with the critical investments we need. Again, go back to my earlier comments. It's not just about 2016. There's a lot of impressive numbers we put up here for the next three years.
A lot of these investments over the 2016 timeframe are really going to benefit 2017 and beyond, just like the investments that we were making last Investor Day have benefited in the last couple of years. You'll see a slight improvement in operating margin year by year. Some improvement in gross margin and some deleverage in SG&A. Think about that going up by just a little bit every year as we kind of commit to our internally and externally to get better every year while really balancing that need to invest.
Fundamentally, we think it's important that we always move forward. Going backwards or even staying the same is something that just culturally doesn't fit with us. At the same time, as you hear, the hardest thing about Investor Day is figuring out how to edit the information even we're going to pass on to you and looking and saying in the span of five and a half hours, how are we going to get across the messaging that we want? There's a lot of great stories we didn't get into detail. The $200 million outdoor business that we have. There's on the international side, there's additional things in women's and Armour39 through digital sport. We have to be thoughtful and prudent about that.
Our jobs, frankly, as leadership of the company, is to make sure that we're responsible for deploying the resources, time, people, and money. There's only so much of any one of them. Even if strategically it may be the right place to be, whether that's a new market and Charlie can say, "I think that we need to be in Russia," for instance, as part of the BRIC formula, but we don't have the right partner or leadership there. We'll take a pass there.
When we look and see the leadership that Charlie's put together, for instance, in Brazil, and you've got these teams of professionals and going, "All right, what can we do to carve off to make sure we prioritize?" That's the thing I think where Brad and I find that balance as well, is making sure that it's not We've got opportunities everywhere, but being, I think, prudent enough to make the decision to invest in the places that are going to have the greatest ROI in the shortest period of time, that allow us to sit here and have these meetings with you, five and 10 and 20 years from now versus just a couple of years from now.
Great. One other quick thing. What's the delta on the international margins versus the total?
Probably don't want to get into specifics of that. We usually don't give the specifics of our gross margins in those types of businesses. Again, I think the important thing to take away from that is there's a pretty drastic difference in the business models. Whether it's a licensing model or a wholesale-retail model or a distributor model, there's varying differences. That gross margin international business could change significantly with business model changes that we're not assuming any drastic business model changes the next three years.
Hi, Sam. Hi. Sam. A couple of questions. Sam Poser with Sterne Agee. Number one, Brazil. It seems like a very important business coming up, but Brazil is a very closed border country. How do you deal with the duty structure and all those issues about positioning the brand into Brazil to get that really working going into the big events coming up? I have one other question.
The greatest thing about this is I've got an unbelievable team. Let me turn now. Charlie Maurath, if we can get you a microphone back there before I try to stumble through that one. We've got another one over here for the management team. Let's borrow that other mic. Yeah, one thing you'll find about Charlie is he's very real.
Hey, Doug.
He's not from South Jersey. That's a real German accent, go ahead and belt it out.
I will keep talking with a German accent. I love this question because it normally comes always up when there are questions around Latin America, and I have worked there for 10 years. We need to differentiate between footwear and apparel. If you talk footwear, it's a major drag because Brazil is one of the market with a huge amount of tariff and non-tariff trade barriers. If you take footwear made in China, you have a 35% import duty plus I think $13.65 on top. Our footwear share is fairly small. The good news is when we enter the market, we have a lot of apparel and a high apparel share where we produce a lot of the apparel in Latin America, but there are hardly or no import duties into Brazil. At least for the market entry strategy for Brazil, we are well prepared.
Our footwear today is predominantly done in China, so it would be a problem. When we go in, it's not a big issue because the quantity is small, and we look at double sourcing, getting in the future products also from Indonesia into Brazil in order to go around this tariff and non-
Trade tariffs. Sorry.
No, go ahead, Mexico.
I think it is also important to note that we have been doing business in that region, specifically into the U.S. for some time. Actually, it was our first 807 program that we moved from Allentown, Pennsylvania, into Honduras. There is favorable trade agreements within the region. Specifically, with Brazil, we actually had our team member, Bobby Hall, who has been on a 7-week trip interviewing new manufacturers. We are really getting a jump and trying to put a game plan together. It is a complicated marketplace, but there is some great manufacturers there as well. Even though it is complicated, there is an infrastructure that has been built over time in Brazil that you can access.
Thanks. Secondly, back to the international in general about the margins and everything. When you are converting certain of your businesses to the subsidiaries, that would then raise your gross margin, raise your sales significantly, and raise your SG&A at the same time. How much business are you doing in those 4 countries? How much will that affect it from the 4 countries that are converting over to subsidiaries in 2014? You talked about, I did not follow what you said in Europe about taking over some of the businesses in Germany and so on and so forth.
Yes.
I guess those are not becoming-
When you look at the next 3 years, we are not assuming any changes in any of the business models. A licensee today is a licensee in 2016 in these numbers. A distributor today is a distributor in the 2016 numbers. The only model change that Charlie spoke about in his presentation was Mexico. Mexico is going from a distributor-type model to our own in-house model as a subsidiary starting in January of 2014. Mexico's business today is relatively small, so the impact today is relatively insignificant. Obviously, the ability to control that market and the opportunity of that market is huge going forward. Do we have opportunities to convert some of these models over the next 3 years? Naturally, the answer to that is yes.
We haven't assumed that in here for right now for obvious reasons, because there's not any discussions to do so right now at this point in time, but that opportunity exists. Remember, a licensing model is 100% gross margin. Taking that in-house actually goes against your gross margins, and a distributor is a lower gross margin. It would become better coming in-house. Okay?
Sadie, do you have a microphone?
He's got one.
Go ahead.
Hi, Michael Binetti with UBS. Thanks. I remember being here two years ago and everybody trying to pull targets and goals out of you on the revenue for footwear, Brad, I remember you guys really didn't want to. I thought it was affirming today to hear you give some targets around where you think revenues can go over the next few years. The number that you did throw out was the low 30s on the gross margins on footwear. As we think about that over the next three years, where do you see margins in the footwear business going, as you seem to be getting more confident in the platform, at least over the next three years?
I'll jump on that first, I'll let Kip add onto that afterwards. Low 30s today, I think it's really important to note, if you look at our footwear business compared to a lot of our competition, even though we've seen some really good success in the non-cleated part of our footwear the last couple of years, cleated footwear, albeit an extremely important part of our business from an authenticity perspective, is still a very large part of our business and mix. It is the lowest of low margins from a category perspective in footwear. Part of the reason why we're in the low 30s is mix itself. Over time, as we become more and more successful in running, a lot of that growth to $600 million is going to come from running.
In a category like running, you should see some natural improvement in gross margins from a mix perspective, along with the fact, I'll let Kip jump on this, is that we're just going to be getting better in general from a footwear operations perspective.
Yeah, I think that incremental getting better is the key for all of the teams, apparel, footwear, accessories. Specifically in footwear, having the ability to engineer quality and margin at the beginning of the design process is what we're going to focus on. I do think it'll incrementally get better. Running is obviously better than cleated. I think Brad stated that. We continue to see running be one of our biggest global opportunities, as well as training. We'll tend to see higher margins in those categories. It's natural. We're excited about some nice gains there.
Numbers we've thrown out, again, longer term, this is not a 2016 target necessarily, but longer term, we feel like footwear gross margin should be in that 40%-low 40s area. That's not something that we think we can achieve by 2016. We think we can improve where we are today because of mix and some of the things that Kip's talking about. Longer term, that's where we think we should be. The important thing with footwear, though, as we always talk about this, is you've got to look at the whole business model in footwear. It's not just a gross margin story. Although gross margins are dilutive in footwear over time, as we see success, especially in our non-cleated footwear businesses, you have the ability to really leverage SG&A much better in footwear because of the higher price points in footwear.
Although with a maturing footwear business over the longer term, you're going to see lower gross margins. From an operating margin perspective, the footwear business should look relatively similar to our apparel business, and that's a piece that we want to make sure you walk away with. That's really important to remember.
Thank you. Kevin, if I could just ask one more follow-up then. As you move into specialty and you think about the evolution of your direct-to-consumer business, I guess Under Armour has one of the most crystal clear and discreet, strong partnerships with a very small number of retailers. As you move into building your own specialty stores, how do you think about what your brand needs to do to segment the product that you have at Dick's, Sports Authority, Academy, to help them keep comping and stay happy with their business while you also pursue your own stores over the next few years?
Well, let me start, and then I want Henry to jump in on the end on some of the segmentation questions. I think it's a very good point, very good question.
First and foremost, there's a big landscape of distribution out there. First of all, there's a big landscape of consumers out there that we believe today, even as much as we've grown in opening things like the department store channel recently and some other things in the last two years, we really don't feel like we've scratched the surface. We believe there's a lot of consumers that would like our brand, that are looking for our brand, but frankly, haven't found our brand. The very sober and honest conversation that we have with our key distribution partners is that we commit to them is to continue to deliver these double-digit comps to them, which we've done on a consistent basis for, really since our inception in their stores. We need to keep driving differentiation.
We need to keep driving innovation in the stores and making sure that there's a reason as to why they want to go there. The sophistication of our business, of our brand as a whole, is something that I think you're seeing us have the capacity to not just make a HeatGear $25 T-shirt and a $50 ColdGear mock that are sold. We've got this capacity now to probably speak in a couple different dialects to the consumer than just sort of one clear Under Armour voice, and whether that's men's to women's, whether that's mall to sporting goods, and whether that's on-field or off-field. We're keying in on that, of number one, we're not going to give up an inch of what we've built with our key sporting goods partners. We're going to continue to drive space. We're going to drive our footprint.
We're going to drive our presentation. We have big ideas and expectations of what that can be. At the same time, any of you, and I want to reiterate, anybody who didn't make it to Harbor East, I think it's a really important part of the story that we're telling here today, to just see that and get some sense and feeling of what our brand looks like when we have all that product in one place. Certainly, when you walk into Harbor East, it'll give the expectation of segmentation that I don't think you've really probably seen from us before. You've maybe seen Under Armour limited to a few racks or maybe a bit of a presence in a store, but not in the way that we have the capacity to do.
Yeah, I'd add on a few things. First of all, I see the white space of our distribution as total opportunity. With the strength of this brand, we have runway that is quite significant. Second of all, three years ago, if you look at our business right now, we're making 40% fewer styles than we did three years ago, and we've added a lot of efficiencies. What that enables us to do now is, as we build these resources we've talked about, segment our business. Harbor East, 40% of the assortment in that store is unique to that one store, and we're going to continue to model that. Take an incredible partner, Dick's Sporting Goods. We're going to actually develop products specifically with Dick's Sporting Goods and for Dick's Sporting Goods for the consumer in that store. Same thing with Chip on the website.
We believe that segmentation, as we look at our blueprint and our distribution throughout not only North America, but what Charlie's doing internationally, that's why we're adding these design resources, what Kip talked about in terms of development capabilities, engineering, so on and so forth. You will see us show up differently, whether it's a premier department store, whether it's a Dick's Sporting Goods, or whether it is a specialty store or our website or a store in Brazil. We're going to show up differently, and that's something that our product teams are going to be committed to working on and have been working on.
Faye?
Hi. Faye.
It's on.
Faye Landes from Cowen and Company. Two possibly somewhat related questions, maybe not. First of all, can you elaborate a little bit on your thoughts on sports marketing assets? Obviously, the biggest thrill of the meeting was seeing the product, the second biggest thrill was seeing one of your key sports marketing assets in person. Can you just talk about how you think about that, especially as you go to other markets where there are people who may be relevant to those specific markets? Because the cost is very high to get people on board, and you obviously have some great people, but how do you think about that going forward? What do you need to do? How important are they, et cetera? The second question, and Kevin, I guess this is for you in particular.
You've laid out very concrete goals, which I echo the sentiment in thanking you for that. What do you think are the sort of the three biggest risks to achieving those goals, and what are you doing to protect against that, Protect This House against that?
Well, thanks for the plug on Protect This House.
I like that.
Well done. When it comes to assets, it's a constant struggle. I call it something short of a fistfight of where are we going to, again, deploy those resources, particularly on the marketing side. We've remained committed to this, our marketing percentage. We're still 10%-12%, Brad? We haven't gotten to 13% or anything?
We're 11%.
We're at 11. We're at 11-ish percent. The struggle, the agreement, let's put it, the agreement begins there, is that we can't do everything in that if we are going to do something else that we really want to do, we'll probably have to take something away. However, we also have a business that's growing 20%-25% a year. It means that on a $200 million marketing budget, we've now got a quarter of a billion dollars to spend the following year. A lot of that, anniversaries and moves its way over, and a lot of it, frankly, is new dollars and new money for us to look at, that we have now because what kept us from probably being more of a global company in the past was really around leadership.
Again, you can invest in a strategy all day long, but unless you have the person who's actually capable of executing it, you're going to be in short supply. You got a chance to get a sense of Charlie and the strength of the team that Charlie's building here at Under Armour. More and more of those type of assets are going to be something that's going to be pulled from us. I mean, imagine Under Armour, this domestic American company, that all of a sudden just made this huge investment in Colo-Colo, the largest club in Chile, and where we're in business, but we're truly not in business. We haven't opened our sub or distributor yet, but we're in the process of doing that. In short and simple, we will fund great ideas.
We will fund great ideas with great leaders who have the capacity to execute on those ideas, plain and simple. Those decisions luckily will become harder and harder for us because we have so many good opportunities, but Charlie's going to create those opportunities and tell us where we can get into. We like deals, frankly, that eat what you can kill. We're not a licensed jersey manufacturer. We don't align ourselves there. We invest in teams that will drive basically a broader ethos. We want kids growing up wanting to wear training and sport product from Under Armour because they saw Colo-Colo wearing our product. We're not saying, "Great news. We can now sell half a million or a million kit jerseys," and that's our business model. We do that, in addition to driving the value of the brand.
At the other side, the things that, how'd you say the three things that we look at to protect our house?
The three risks, the biggest risks.
Yeah. I've been consistent with my answer for this, I always believe that our biggest risk is ourselves. Maybe it's getting caught up or reading our own clippings and first and foremost, we're proud of our ability to sit here today and tell you the commitment that we made to you back in 2011 that we're delivering on, exceeding that 2x growth by 2013. We understand that even in laying out another number for 2016, that of course there's risk around that as well. It comes down to people and execution. I believe that we have a good strategy. We've been really going through as a company, this 3-year business plan process.
It culminated and we've been meeting on it this week, but we're no longer talking about things in the vacuum of, God forbid, a week, a month, or a quarter even, but we're talking in terms of a year, and frankly a rolling 3-year plan. We're really deciding and in going back to my first point about the best ideas being funded, the best businesses being funded, that have the best leadership for us as well in order to run to. I think as long as we keep putting people in place, and again, it's looking at Charlie and saying, do we have the right where we say we need to be global?
We need to be global, we need to make sure we're investing where we have an appropriate strategy to supply chain that can support and keep up with it, and of course, the leader in place who can actually handle and deliver on it. There's probably two more I could come up with, but that's one good one for now. Thanks, Faye.
Great, thanks. Hey guys, this is Brian McGough. I'm from Hedgeye Risk Management. I was hoping you could hit on, this is like a little bit what Faye hit on, over a long time period, there's been a whole host of brands who have had in shoe space maybe 3%, 4%, 5% share, they've always been saying like, "Hey, if we can only get to 8% share, it'll be $X." The same thing internationally as far as apparel goes. It tells me if it doesn't happen, it's either a brand problem, which I think Under Armour certainly does not have, or a leadership problem, which also I don't think it has, or maybe a capital problem. I don't know if there's a capital problem or not.
I was hoping you could shed a little bit of light on your own view as to whether you think you're investing enough money into each of those businesses, both international and also footwear, in order to achieve the goals that you want to achieve over an appropriate time period.
I can jump on the international one to start with. I think, again, Charlie kind of outlined this too. There's a pretty good balance in this strategy around how we're going to pursue our international opportunities of whole-owned subsidiaries and also some distributor-type models. I think the interesting part of that balance is there's a self-funding mechanism to some degree in that model. These distributor models really kind of lean more, even though lower gross margin, kind of lean more on one party to kind of do the market entry and execute within market. These distributor models kind of start day one from a profitable perspective. There is the ability of having a good balance of distributor models to enter into markets going forward, along with our own subsidiaries.
To some degree, Charlie kind of outlined that these can be somewhat self-sufficient relative to use the profitable distributor model to help fund the needs of kind of the owned subsidiary model in some of the larger markets where the greater opportunity is. Charlie and I spent a lot of time talking about the P&L in international, and he's a true believer that international should be profitable. That's the reason why he's here today. He's talked with a lot of people on the management team of Under Armour about that. Does it take a little bit of investment up front? Yes, it does, especially in your wholly owned subsidiary models. You can offset that with some easy wins and profitability on distributor models that you put in place early on. International has a kind of a little bit of a self-funding mechanism to it.
To echo one of the themes that Kip brought up in his presentation as well, there's a great quote from Drucker, "There's only two primary functions for any business, and that's marketing and innovation." About 30 steps in that direction is our innovation team, which is in the process of doubling their space right now. That only begins for that to happen. Where you look at, because don't get me wrong, we stay up and again, piling on Faye's question as well, is that there's been lots of brands who've been in our space, and I don't know, maybe they got tired, maybe they got complacent, maybe they just got fat. I can tell you this organization is very lean, it's very hungry, and very much has a point of view on what it can do.
As we said and started the meeting off, we have a pipeline of innovation that's coming at us and from apparel to footwear, to accessories, and it's not frankly just coming from this building, but it's coming from everywhere. One of the hardest things we're going to have to do is figure out, A, how to edit, how to be great editors. How to figure out which stories we lean on and deciding that infrared's going to be the one that we're going to push at, because I can tell you it wasn't, "Well, this is the last resort.
We've got infrared." There were 10 technologies vying to be that. Where we're going to develop those technologies internally, we want to become the centerpiece of energy where everybody's looking and saying, "I've got a great idea of technology." Some of those partners that I mentioned, whether it's NASA or DARPA or others, or other brands, other technology companies that are looking and saying, "The front porch, that is Under Armour." They do story and distribution better than anybody else, and they understand innovation and know how to commercialize. Our ability to take those things and take them to the next level.
When we look at footwear, to be clear, in our models that we've got five growth engines, if one of them just flat out doesn't start or doesn't work or doesn't go anywhere, we still have four that we feel pretty good about delivering us to where we need to get to. Specifically, when it comes to a category like footwear, we look at that with the confidence that says, it's happening with the consumer. A lot of it has been mind share, a lot of it has been branding, a lot of it has been getting them into it. When you look at the consumer awareness of Under Armour in that space, it was just 13% or 14% a couple of years ago.
We're in the process of building on that telling the consumer that we make the world's greatest footwear, we'll continue to drive after that more and more. We had a point or a point and a half of running shoe market share a couple of years ago. This year, it was 2.4%. I think we're the fastest-growing where that goes. That means there's about 97% and change out there that we're going to go get. We see it all as opportunity. We see it as the brands coming in. We've used the analogy before is that, whether it's entering markets that have 90% market share, I don't believe Under Armour is coming in from some of the positions that any of the other brands have. Everybody probably thinks their story is unique, I've likened Under Armour to a bit of a freight train.
Is that what's happened in the apparel space? It's something it's taken us 17 years to get to this point. Plain and simple, we are thought leaders in the space, we are driving, we are moving forward. We'll continue to establish that in footwear. A lot of that you got to see last night, a lot of it you got to see in some of the futurist rooms, it's happening. Obviously, you don't have quite the visibility into the things that we've seen too. First and foremost, I'll tell you is that I believe we're putting together a world-class team.
What you're hearing us do with the offices going fishing where the fish are unloading that, I think we're learning how to become a global product engine frankly, continue to play on that mission that we have to be a true great innovation company. How about one more question then we'll wrap up.
Thank you. I appreciate that.
Yeah.
Matthew McClintock, Barclays. Clearly a longer-term goal, but you said potentially e-commerce could be 25% of sales. I was thinking about, Kevin, if you could talk about how you think about that channel as you think about international expansion specifically, then also maybe Brad, if you could talk about the margin differential of that channel versus your other channels.
Yeah. Chip, why don't you talk through if you could on the international end. Let me lead you in and give you a little lead-in is that first and foremost, we don't believe that we're required to enter every other market the way that others have. We think that digital gives us completely new bandwidth to think about our approach versus having the heavy investment in bricks and mortars, and you see where some of the other brands have gotten caught up in a place like China with probably a little too much inventory on stores. It'll allow us to test and probably be a lot smarter. As it gets faster for us, it gets faster for everyone else at the same time.
I don't know if there's any written formula, but we're certainly focusing on our ability to be able to service and have central bases where we will service from the web.
It's Chip Adams again. I think having a model and proving a model out is important, whether it's in retail or whether it's in e-commerce. I think that there are two or three areas where we are looking at the model and saying, whether it's in Great Britain or China, how do you do e-commerce well? If you look at the best practices of the companies who have done this well and done aggressively, they figured out the model first, then they've moved aggressively. I think the good news for us is that digital is now the new way to market globally, we're not going to have to compete dollar for dollar for athletes or for media. We have to compete on our creativity to bring our athletes to people in a different way.
Driving awareness in these countries is going to be done on a platform that we think creativity is going to win, not just massive dollars. Once we get that model right in the two or three countries we're working on e-commerce globally, then we're going to take it aggressively to the rest of the world. We think it's in the really early stages of that.
Awesome.
On the margin side, obviously the gross margin side, you're direct to consumer there with e-commerce, it's probably one of your better gross margins in our business. If you look at our overall gross margin where we're at right now, around 48, I would say that the e-commerce margin's probably almost 20 points above that. Kind of in the high 60s to some degree is where our e-commerce margins have been, we've said that over time. Again, the model's a little bit different. A lot more variable costs in SG&A on the e-commerce side to run the demand drivers of the business. A lot of our focus, and to Chip's comments before, a lot of our focus right now is really driving getting the consumer on our site.
There's an acquisition cost of getting that consumer today, the benefit goes beyond just today, obviously, into future years. The anticipation of taking our business from the high single digits to in the 20% range of our total business, the cost of that really is capturing these consumers and these athletes, there'll be a cost to that that's kind of sitting as a variable cost in SG&A. Overall model, again, probably kind of looks like our wholesale apparel model to some degree. Higher gross margins, more SG&A to capture those consumers.
Great. Thank you. You had a question too, didn't you, Jimmy? Good. We do have you excited today, don't we, Jimmy? We'll get that hold from you someday. Let me wrap up with just a couple of points, and it's frankly the same way I wrap up every one of our management meetings and any time that we get together. I always tell people, first and foremost, here's what I heard. Secondly, here's what I think. Third, here's what we're going to do. As you listen today, hopefully you take that approach in hearing some probably new things and hopefully appreciating the perspective of how we're approaching our business, and I think the opportunity that we have in front of us. It also comes down to what we said we are going to do, that we expect to act on.
We laid out $4 billion as a revenue target for 2016, and we talked about the runway we have here in the U.S. apparel, with apparel, and the upside that we see in footwear. In men's, we told you we're going to approach the billion-dollar mark this year here in the United States, tracking to $1.5 billion by 2016. Key takeaways from men's, biggest piece of our business, but the reality is that we feel we are just getting started, and there's still tremendous opportunity for us to grow, even here in existing distribution in the States. In women's, $250 million, a quarter billion dollars of growth since just 2010. Again, I don't think we had a lot of people believing when we told you that women's could someday be larger than our men's business.
Great momentum in our business, the promise that we're going to extend UA women's to a new consumer, one that'll help us reach the billion-dollar mark by 2016. Youth. What is a youth anyway? That's what we call it next. Growing faster than men's, growing faster than women's. By 2016, approaching the $500 million mark. Footwear. Focused on being the performance brand on field, first and foremost, because we understand if we win at that pinnacle, it'll allow us to go every other direction. Technology stories like you saw today with SpeedForm, the 2016 target for footwear, $600 million. International. You heard the strategy from Charlie that's going to make us a meaningful player outside the United States. By 2016, we're going to double the size of our international business and see it accounting for 12% of revenues compared to just 6% today. Finally, direct-to-consumer.
It enables us to control our presentation, like you saw last night. We're already our biggest customer today at 29% of revenues. We see that moving up to 31% by 2016. $4 billion by 2016. We can't wait to talk to you about our next target in 2015. Ladies and gentlemen, thanks very much for coming to visit us here in Baltimore, Maryland. It's great having you all here today. Thank you.