) entered into a legal tussle with
Under Armour Inc
) alleging that the latter and its subsidiary MapMyFitness are
offering products that directly infringe on10 Adidas patents used
in miCoach, the fitness monitoring system provided by the German
In the complaint filed in the U.S. District Court in Delaware,
Adidas accused that products offered by Under Armour's Armour39
such as watches, chest straps coupled with digital products and
mobile applications marketed by its MapMyFitness, have violated
Adidas also indicted that its former senior engineering
manager, who is now the director of research at Baltimore-based
Under Armour, was well aware of the patents.
With increasing fitness consciousness among people, more and
more sports apparel makers are making headway in providing
gadgets and other fitness tracking platforms, thus leading to
The acquisition of MapMyFitness in November last year for $150
million by Under Armour was a step forward in this direction.
MapMyFitness, which has flagship consumer brands such as
MapMyRun, MapMyRide, and MapMyWalk, has 20 million registered
) has also forayed into the fitness market with its Nike+.
Last month, Under Armour came out with its fourth-quarter 2013
results. The quarterly earnings of 59 cents a share surpassed the
Zacks Consensus Estimate of 54 cents and increased considerably
from 47 cents earned in the year-ago quarter. In the trailing 7
quarters, the company had beaten the Zacks Consensus Estimate by
an average of 26.6%.
Under Armour, which competes with
Columbia Sportswear Co.
), emerged strongly amid an environment where many retailers
grappled with aggressive promotional strategies at the expense of
margins to gain market share during the holiday season.
Under Armour currently carries a Zacks Rank #2 (Buy), while
Adidas holds a Zacks Rank #4 (Sell).
ADIDAS AG-ADR (ADDYY): Get Free Report
COLUMBIA SPORTS (COLM): Free Stock Analysis
NIKE INC-B (NKE): Free Stock Analysis Report
UNDER ARMOUR-A (UA): Free Stock Analysis
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