Under Armour (UA) Sinks On Fears Of Back-End Weighted '08 Earnings

Shares of Under Armour, Inc. (NYSE: UA) are under heavy pressure this morning which is being attributed to comments from Wachovia from the ICR Xchange about the company's 1st-half 2008 marketing spend and back-end weighted 2008 earnings growth.

The firm said, "While UA is not presenting at the conference, we have learned that the company is planning to run a 60-second Super Bowl advertisement, and believe 1H08 marketing expenses relating to the launch of the cross trainer footwear product could cause 2008 earnings growth to be significantly back-end weighted. We believe total marketing spend for 2008 will be in the 12%-13% range, but a disproportionate amount could come in 1Q08."

Wachovia believes sell-throughs of the cross-trainer will be strong, and the visibility of the brand could accelerate over the next several months.

Shares of Under Armour are down 14% this AM.

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