Less than a month after the debut of its first line of non-cleated footwear, Baltimore-based Under Armour is gearing up for its next athletic shoe launch.
“The next category Under Armour will attack is running,” Kevin Plank, Under Armour?s president and chief executive officer, said during the company?s first Investor Day last week.
Under Armour expects to begin selling running shoes in the first quarter of 2009, further challenging athletic shoe giants like Nike, Adidas and New Balance.
“We have demonstrated our ability to compete with the market leader [Nike],” Plank said.
The U.S. athletic footwear market generates about $9.5 billion in annual sales, according to NPD Group, Plank said.
Under Armour has designed six models of running shoes that would sell for $90 to $100.
“We believe this signifies a tremendous opportunity for growth in the footwear category,” said Raphael Peck, Under Armour?s senior vice president of footwear and licensing. “Footwear will be our growth driver ? a major growth driver for Under Armour.”
Plank has also said Under Armour will consider launching a basketball shoe.
The company, which initially made its name in footwear by selling football and baseball cleats, on May 3 began selling three lines of Performance Training footwear.
According to SportsOneSource, the company sold about 40 percent of its initial stock of Performance Training footwear. Under Armour expects to sell 1 million pairs of cross trainers in 2008.
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. The company expects 2008 sales of between $765 million and $775 million.
To kick off its Performance Trainer campaign, Under Armour spent an estimated $5 million for a 60-second commercial during the Super Bowl. The extra marketing expenses cut into the company?s first-quarter profit ? down from $9.9 million to $2.9 million ? and drew criticism from analysts, sending Under Armour?s stock price down.
“We don?t intend to run a Super Bowl ad for [the running shoe],” Plank said. “I promise.”
