Hi Bruno,
Our cash flow has historically been pretty seasonal with most of the gains occurring in the fourth quarter. In addition, we have been investing in working capital as part of our service initiative which we believe is driving higher fulfillment rates to our customers. We expect this impact to begin to normalize in the third quarter, as inventory growth should align with revenues growth.
From a free cash flow perspective, we are investing more in capital expenditures than historical levels. Our new headquarters is a large source of this spending, in addition to direct-to-consumer and systems investments. We are looking to the debt market to solidify our capital structure to help fund these needs over the next couple of years.
Thanks for your interest in UA!
Tom
Tom Shaw, CFA
Director of Investor Relations
1020 Hull Street
Baltimore, MD 21230
Phone: +1 410-843-7676
