BALTIMORE (Map, News) - Under Armour is betting big on this weekend’s launch of its Performance Training footwear.

The Baltimore-based sports apparel firm will begin selling three types of cross-training shoes for men and two types for women, ranging from $80 to $100, in stores Saturday. Under Armour jumps into the cross-trainer arena, challenging athletic shoe giants like Nike, Adidas and New Balance.

“Stop training in running shoes!” Under Armour Chairman and Chief Executive Officer Kevin Plank said Tuesday during a conference call. “You can probably tell how excited I am for this launch.”

Though Plank said footwear is the company’s “largest future growth engine,” Under Armour has paid a price in hyping the shoe debut. The company on Tuesday said first-quarter income shrank 71 percent on higher costs, including significant marketing expenses.

First-quarter net income was $2.9 million, down from $9.9 million in the first quarter of 2007 and $16.9 million in the fourth quarter. Marketing expenses in the first quarter were 17.8 percent of revenues, compared with 11.1 percent in the same period last year.

Under Armour’s share price fell on the news Tuesday, dropping 10.3 percent, or $3.96, to close at $34.62.

But despite a challenging retail environment, Under Armour’s net revenues increased 27 percent in the first quarter to $157.3 million, up from $124.3 million in the same period last year. Apparel revenues increased 25 percent, with women’s clothing sales up 36 percent.

“The Under Armour brand continues to connect even in the face of a difficult economic environment,” Under Armour Chief Operating Officer Wayne Marino said. “Consumers are still trading up to performance products and selecting our brand.”

The company plans to open nine new retail outlet stores this year, up from the five it had previously forecast, Marino said. Under Armour will also sell more excess seasonal items at lower prices to reduce inventory.

Under Armour expects to sell 1 million pairs of cross-trainers in 2008. The company has received online orders since the beginning of February, when a promotional campaign began with a commercial during the Super Bowl.

The company said it plans to launch more footwear products later this year and in 2009, with Plank saying running and basketball shoes are future “possibilities.”

“They’re out there, but it’s a matter of our brand being ready and our products being ready,” he added.

acannarsa@baltimoreexaminer.com

Comments from Examiner Readers

2:00 PM MST on Fri., Feb. 29, 2008 re: "Tide Point expansion plan includes Under Armour space, residential units"

BA said:
They have a right to complain about population density if they've already lived there. I'm surprised that if you sell homes there you wouldn't see this! What roads do you take in there when you show a house, are they: Fort ave, Fort ave, Fort ave, and the water taxi? I live in the South Baltimore neighborhood and that traffic'll even effect me. It's like the idea of building a whole commmunity where the Balt. Sun printing factory is in S. Baltimore off Hanover St, what road infrastructure will they use for that growth? Will they build a ramp directly into I-95?

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1:05 PM MST on Fri., Feb. 29, 2008 re: "Tide Point expansion plan includes Under Armour space, residential units"

Examiner Reader said:
What

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10:19 AM MST on Fri., Feb. 29, 2008 re: "Tide Point expansion plan includes Under Armour space, residential units"

Dunn said:
Wait a minute... This Locust Point, there is new construction everywhere. One of the best assets in this area is Tide Point, it has done a lot for the community - the beautiful boardwalk with hammocks, kayaks, and views, with great employment. Also, this is Struever Bros., who tend to do things right. My guess is that the older residents are the angry ones. But the new residents who pay 6x the taxes are for it. Tide Point and Struever is not the problem here, but there is a lot of ugly new construction that doesn't jive. I'm not a resident here but I do sell homes in this area, this certainly won't hurt property values.

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12:17 AM MST on Tue., Jul. 17, 2007 re: "Under Armour to kick off effort aimed at women"

Examiner Reader said:
I just saw the advert on TV...The girls soccer team in this gear is HOT!!! This should be the required uniform, I'll love soccer a bit more!!!

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8:16 PM MST on Tue., Jul. 10, 2007 re: "Under Armour to kick off effort aimed at women"

prn said:
They've definitely cornered the apparel market and drastically cut into Nike's share of the market. Their ads are very effective and just by looking at the pic and seeing the very beautiful local talent they used for their shoot, I imagine it will be highly successful.

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