UPDATE 3-Under Armour beats street despite Q2 shoe slump
* Q2 EPS 3 cents vs Street view for 2 cent loss
* Revenue rose 5 percent to $164.6 million
* Sees 2009 EPS 80-82 cents; revenue of $810 million
* Shares up 1.5 percent (Adds executive, analyst quotes, detail from conference call, background, byline, changes dateline, previously NEW YORK)
SAN FRANCISCO, July 28 (Reuters) - Under Armour Inc (UA.N) reported a surprise quarterly profit, as double-digit sales growth in its apparel business offset an expected decline in footwear sales.
The sports clothing and footwear maker, a fast-growing, upstart rival of Nike Inc (NKE.N), also forecast full-year results above Wall Street estimates.
Under Armour shares rose as much as 6.6 percent, but pared some to trade 1.5 percent higher at $26 at midday on the New York Stock Exchange.
Under Armour is known for athletic clothes made of special fabrics that wick sweat away from the body. Its foray into footwear began with shoes used to play soccer, but it has since moved into footwear without cleats.
"The opportunities for Under Armour footwear are vast," Under Armour President David McCreight said of the non-cleated shoes it launched last year in sporting goods stores, athletic specialty and running shops.
Executives said the category had long-term gross margin expansion possibilities and touted last week's hiring of former Nike, Reebok, a unit of adidas AG (ADSG.DE), and Timberland Co (TBL.N) executive Gene McCarthy to lead that business.
Still, footwear makers have faced weakness in the overall category as consumers have pulled back during the economic downturn.
Under Armour's footwear revenue tumbled 18.4 percent in the second quarter from the year-earlier period that included the latest launch. Clothing revenue rose 16.5 percent with double- digit growth in all all categories.
"Under Armour's strength in apparel suggests it continues to perform for the leading retailers. Unfortunately, the decline in footwear suggests the category remains soft heading into the important back-to-school environment," wrote Raymond James analyst Dan Wewer in a note.
Analyst Kate McShane of Citibank wrote that a premarket rise in shares was also partly attributable to a high level of short interest in the stock.
"RECHARGE SUIT" Continued...
Delayed spacewalk ends successfully.