But while many analysts suggest this company may be a one trick pony – akin to Crocs, (Nasdaq: CROX). They couldn’t be more wrong. The reason its share price was penalized was that analysts were expecting $1.09 instead of the .79 reported.

This is a classic case of overreaction from a negative earnings report.

The fact of the matter is that this brand has developed a premium niche within the sportswear market, and it’s expanding that brand recognition to other areas.

Yes, there are numerous knock-offs of their breathable fabrics. And several competitors for the highly coveted retail space they occupy. But you have to hand it to UA. It was able to outmaneuver entrenched companies like Adidas AG (OTC: ADDYY) and Nike (NYSE: NKE). That wasn’t easy.

Under Armour’s integration into professional and college sports, has put its product into the hands of millions of athletes. From younger athletes see their sports idols wearing UA, to the armchair quarterbacks who want to do the same, its specialty sportswear has mass appeal. That brand dominance will allow it to keep its spot for the long haul.

It’s no surprise, really, that it’s being affected by the current economic downturn – like most other companies. But a few missed analyst estimates does not make a company un-investable – or unprofitable.

Source: Under Armour (UA) Gets Penalized by Analysts

• Bertelsmann AG will sell its half of Sony BMG Music Entertainment to Sony Corp. for $900 million giving the Japanese company full ownership of the joint venture, The Associated Press reported. A statement released by the privately held Bertelsmann said the new company will be called Sony Music Entertainment Inc.

• The Procter & Gamble Co. (PG) reported a 33% jump in fourth-quarter profit yesterday (Tuesday) as the consumer-products maker overcame soaring energy and commodity costs with higher prices and product improvements. The company said it earned $3.02 billion, or 92 cents per share, up from $2.27 billion, or 67 cents per share, a year ago.

• The U.S. service sector shrank slightly for the second consecutive month in July. The Institute for Supply Management said its non-manufacturing index came in at 49.5 for July, up from June’s 48.2, but still negative as a reading below 50 signals contraction.

• D.R. Horton Inc. (DHI), the largest U.S. homebuilder, reported a quarterly loss of $339.3 million yesterday (Tuesday), a major improvement over the $823.8 million loss of a year ago. The latest quarter included pretax charges of $330.4 million to write down the value of unsold homes, deposits and other costs as the company walked away from land option contracts, The Associated Press reported.

• Officials at Lehman Bros. Holdings Inc. (LEH) have held conversations about the possible sale of the firm’s entire investment management division, CNBC reported. A person involved with the deal said Lehman began alerting potential interested parties a couple of weeks ago. Another person with knowledge of the matter told the CNBC that if Lehman goes through with any sale, it’s likely to sell only part of the investment management division.

• Adidas AG (OTC: ADDYY) yesterday (Tuesday) reported a 12% jump in profit and increased margin forecasts after June’s European soccer championship and this month’s Olympic Games spurred sales in emerging markets. Net income rose to $180.8 million in the April-June period. Over the first half of the year, net profit rose 23% to $443.3 million.

• South Dakota farm real estate averaged $990 an acre on Jan. 1, 2008 – an increase of 21%, or $170 an acre, from a year earlier, The Associated Press reported. The values of agricultural land and buildings have increased for 15 consecutive years in the state, according to the federal Agricultural Statistics Service. Farmland values in South Dakota are at a record high and have doubled in the past five years.

• Russian arms sales will likely hit a new post-Soviet record this year, as weapons exports exceed $8 billion this year, The Associated Press reported. Russia’s arms sales reached a post-Soviet record of $7.5 billion last year.

Source: Global Investing Roundups Wednesday, August 6, 2008

One such company is sports apparel maker Adidas AG (OTC ADR: ADDYY). This past weekend marked the opening of the Adidas’ largest retail store in Beijing, the crown jewel in the German firm’s China expansion.

Adidas already has 4,000 retail shops in over 500 Chinese cities, and the sportswear maker is planning to open even more. By 2010, there will be 6,300 Adidas stores across China with an expected $1.5 billion (1 billion euro) in annual revenue.

“Building shops in China is relatively inexpensive compared to places such as Europe. Costs are extremely reasonable,” Frederic Seiller, Adidas’ vice president for retail in China, told Thomson Financial News.

Costs are cheap, but Adidas products command similar prices to their European retail counterparts, Seiller said. Plus, nearly 50% of Adidas goods are produced in China, keeping down shipping costs in the region.

Adidas is hoping for a big boost in visibility in China due to its association with this summer’s Olympic Games.

“The Beijing 2008 Olympic Games will serve as a platform for the Adidas brand to become the leading sports brand in China in 2008,” Erica Kerner, director of Adidas’ Beijing 2008 Olympic program, told BBC News.

Adidas’ “Impossible is Nothing” marketing blitz surrounding the Olympics represents the company’s largest marketing campaign in a single market to date and Adidas hopes it will pay off big.

China’s Olympic Brand Recognition

Other well-known names round out the list of top International Olympic Committee partners including Money Morning favorites The Coca-Cola Co. (KO) and McDonald’s Corp. (MCD).

With the Aug. 8 opening ceremony a little over a month away, these “Global Titans” are hitting China with a full-blown advertising assault.

McDonald’s has been selected as the Official Restaurant of the Beijing 2008 Olympic Games. The fast food giant has plans to build four restaurants in Beijing that will cater to the athletes, the news media and spectators who attend the sports events. McDonald’s also has a Champion Kids promotion to give 300 children a chance to attend the Olympic games.

To celebrate and promote the diversity of the Olympic Games, Coca-Cola designed multilingual labels “that feature multiple languages including those of the U.S., Bangladesh, China, Egypt, Georgia, Israel, Korea, Nepal and Sri Lanka,” the company released in a statement. “Connect with the World Over a Coke” is the beverage maker’s slogan for the Games.

Source: Growing Brand Awareness of China Consumers Equals Profit