FirstCuts: Under Armour Profits Sacked

Evidently, the fine folks at Under Armour have spent a little too much time protecting their house, and not enough time protecting their check book.↵↵The company announced that Q1 net income was $2.9 million, down from $9.9 million at the same time last year. From what I learned in two econ classes at Ohio University, this is not a good thing. If you want the rest of the news on Under Armour’s financial notes from earlier this week, check out the Baltimore Sun, word to Gus Haynes.↵

↵↵UA’s hiccup comes as the company prepares to launch its first line of trainer footwear, going away from strictly Click Clack cleats. The folks at Under Armour are taking a calculated risk -- as pointed out in Ad Age (via SBD) -- when the economy is enterting a down period. Is it realistic to ask people to buy a second pair of shoes to train in, separate from the ones they use to actually play? On the Under Armour earnings call, UA founder Kevin Plank said the company is trying to push people to train in different shoes than the ones they use for running. The Baltimore Sun reports a campus for UA in Charm City is in the works, although it is years down the road. Despite what could be tough economic times, Under Armour seems committed to staying aggressive.↵

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↵↵Check back next week for our first shoe performance reviews here on FirstCuts -- something we’ll continue to do going forward, but more so when next season’s shoes start to roll out. We’ve got our hands on samples of all three upcoming trainers from UA.↵

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