WHEN: TODAY, TUESDAY, February 7, 2017
WHERE: CNBC'S "FAST MONEY HALFTIME REPORT"
Following are excerpts from the unofficial transcript of a CNBC EXCLUSIVE interview with Under Armour CEO Kevin Plank today on CNBC's "Fast Money Halftime Report." Following is a link to video of the interview on CNBC.com: http://video.cnbc.com/gallery/?video=3000591176.
All references must be sourced to CNBC.
PLANK ON PRICING
We've demonstrated a track record of being able to sell product at full price. I mean, it is one of the things that, you know, when we broke into sporting goods, we started in the equipment section. And all of a sudden because that is what Under Armour was in 2002. And then we moved from the equipment to the apparel section. And it was like look at the margins and maintain the margins they are able to keep. And so, we have now created a category – we created our own pie, a new pie. We expanded the existing one and we've created this new pie of performance. And I think the consumers reacted because performance is in a lot of places. And I don't know if that definition has really been thoroughly told. And again, I look at the fourth quarter, I think we could've done a better job telling it.
PLANK ON FOURTH QUARTER
We had a tough time in the fourth quarter. I think we came – we were incredibly transparent about it, we gave a great logic as to why that happened. We gave a great logic for the deep root cause that we are now taking action for and addressing. We will address that in 2017. Wall Street can count on us. They have always been able to count on us. And I think our track record and our history is worth something.
PLANK ON LIFESTYLE
Ask the people out there. Your kids' closets they have Under Armour. They love Under Armour. There is no brand issue here. But we also see the opportunity that when we look and say our competition has a third to 40% of their business, our two major competitors, in lifestyle. For Under Armour, it is less than 5%. And this isn't we don't know how to do it and we don't know how to make lifestyle product. We absolutely do. Give us the platform, give us the time to do it. And what I didn't want to do was I didn't want Under Armour to become – I never wanted us to be just a one trick pony. We are not just about growth. And so, managing and tempering that growth has a lot of things that go into it.
PLANK ON GREAT RUN
Business is passionate. Business can never be emotional. And so, I think, when we look and understand what the long-term vision of the company is, we've had a great run as a company. I mean again, 11 years public, you know we have seen it all. And we lived through '08 and '09. You know, we have seen highs and we've seen lows. And one thing that we know is I would not bet against Under Armour. And if there is a message today for shareholders is that look at the body of work that we have done and we've put in.
PLANK ON BEING THE LARGEST SHAREHOLDER
We do need to make certain investments and this isn't, you know, investors be dammed. I am the largest shareholder. I share the brunt of what is happening here, too. And we've got a long term strategy, we remain committed to it and I think when you look at the numbers and you look underneath the hood, we've got a great business and a great brand. And we will keep driving towards that.
PLANK ON NORTH AMERICA
North American retail is in a very difficult place. I think we've looked at some things we can probably do better as well. So these are not things there are things outside of our control but a lot of things inside our control so we are a topline growth company we are a bottom line growth company we understand both of these metrics. I think investors have learned that over an 11 year record of success. The last 6 ½ enjoying 20 plus percent topline growth in this company too.
PLANK ON GROWTH COMPANY
We are a growth company. You'll never hear us not say that. Our current outlook still has double digit plus growth. Which is close to industry and sector leading amongst the leaders there. But our business is so young. Our business is really just getting started and when you look and think of the opportunity we have. We do need to make certain investments. And this isn't investors be damned. I am the largest shareholder. Like I share the brunt of what's happening here too. And we've got a long term strategy. We remain committed to it. And I think when you look at the numbers and you look underneath the hood, we've got a great business and a great brand and we're going to keep driving towards that.
PLANK ON MANAGEMENT
We want to run this company and if investors need any message, we're not going anywhere. My two feet are planted in this company. My management team's two feet are planted in this company as well. As I tell you everybody's got a little bit of a chip on their shoulder right now but we look forward to making that right.
PLANK ON TRUMP
I think he's highly passionate. To have such a pro-business President is something that is a real asset for the country. People can really grab that opportunity. He loves to build I don't think there's any surprises here. When you look at the president he wants to build things. He wants to build things he wants to make bold decisions and be really decisive. I'm a big fan of people that operate in the world of publish and iterate versus think, think, think, think, think. So there's a lot that I respect there.
PLANK ON BUSINESS DOUBLING
This company plays offense. Like this company throws punches. That is what we do, and it's how we continue expecting to be able to run again. And so, you know, we feel good. But you know, there are tweaks. And this is not to say, you know, the world is rosy—this is to say, like any company—and a great stat: our business doubled in the last 3 years.
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