Armour

Consumers are cutting back on most discretionary spending, but plenty were willing to dish out a hundred bucks or more to buy Under Armour's new running shoe this year. The Baltimore sports apparel company said Tuesday that its first-quarter earnings beat analyst expectations thanks mostly to strong sales of the shoe, which it introduced in January. The results came as several analysts had downgraded their ratings on the company recently because they questioned whether consumers would continue to buy pricey goods during a recession.

Under Armour Inc., a private Baltimore company that mushroomed from a basement start-up a few years ago into a force that transformed the sportswear industry, informed federal regulators yesterday of its intent to begin selling public stock. The company filed papers with the Securities and Exchange Commission requesting to sell as much as $100 million in common stock in an initial public offering. Kevin A. Plank, Under Armour's founder and chief executive officer, would continue to control the company under the plan.

Shares of Under Armour slid more than 10 percent yesterday after the Baltimore sports apparel company said plans to get rid of excess merchandise by reducing prices at its outlet stores would force it to lower year-end earnings and gross margins. The company said it expected year-end income from operations of $103.5 million to $104.5 million, down from its previous estimate of $108.5 million to $110.5 million. Gross margins are expected to fall 30 basis points to 50 percent. Under Armour had previously expected gross margin improvements of 40 to 50 basis points.

Two of Maryland's greatest self-made men of recent years - Under Armour founder Kevin Plank and Ravens owner Steve Bisciotti - have taken the routine renewal of their companies' marketing agreement and are extending it to a combined philanthropic effort focused on Baltimore City schools and children. Both men see a healthy Baltimore as essential to the well-being of the state (and, not incidentally, their own success), and they say they want to do whatever they can to improve it. Their idea to combine "a little money, a little exposure and a little arm-twisting" to find ways of inspiring city youth and convincing others to join in their efforts has real potential.

POTOMAC -- The most significant logo on Rich Beem's golf bag is "Odyssey." It is for the putter he uses and, perhaps, for the road this 28-year-old rookie has traveled from obscurity to the spotlight here in the $2.5 million Kemper Open. It could also describe what happened to him in yesterday's third round at Avenel.Beem recovered from a shaky start that saw his lead cut to one shot after two bogeys on the first three holes. He made three straight birdies and a fourth on the par-4 10th to build his lead back to three and his score to 11-under.

Shares of Under Armour Inc. rose more than 13 percent yesterday as the Baltimore sports apparel company reported that first-quarter profit tripled and also raised its earnings forecast for the year. Under Armour said net income increased 248 percent to $8.7 million, or 18 cents a share, for the quarter that ended March 31, compared with $2.5 million, or 5 cents a share in last year's first quarter. Net revenue increased 50.7 percent to $87.7 million, compared with $58.2 million during the corresponding period last year.

Sports apparel maker Under Armour Inc., which expects to outgrow its headquarters in Baltimore's Tide Point in about five years, is eyeing West Covington, an industrial swath of Middle Branch shoreline that city officials want to transform into an extensive mixed-use development. Officials at Baltimore Development Corp. have talked with Under Armour executives about West Covington and several other city sites as a possible home for a future corporate headquarters in an effort to help the company grow, said M.J. "Jay" Brodie, president of the BDC. "It's obviously in the city's interest to try to find possibilities for them within the 80 square miles of Baltimore," Brodie said.

CLEVELAND -- Qadry Ismail said he sensed throughout last week's practices that a breakout game for the Ravens' offense, specifically its wide receivers, was at hand."

Sports apparel company Under Armour Inc. took a calculated gamble earlier this year, spending millions to promote a new performance trainer sneaker even though it knew it would take an earnings hit and upset some investors. Yesterday it appeared it was paying off. As expected, the Baltimore company posted a profit drop for the second quarter. But the 75 percent decline was less than analysts predicted, and revenue rose 30 percent, thanks to successful sales of the cross trainer. It sold through almost a third of available inventory of the shoe in four weeks.