Under Armour’s net income increased by 13.8 percent to $9.9 million on revenue growth of 41.8 percent to $124.3 million in the 1st quarter. The improvement in revenues was primarily driven by the company’s “compression” segment, which includes its tight-fitting performance undergarments, as well as the additional $11.8 million in turnover from footwear, which was not offered in the year-ago period. The footwear category, launched in the 2nd quarter of last year, caused the gross margin to decline by 1.8 percentage points to 48.7 percent, as this category carries lower margins than apparel. Marketing expenses for the quarter represented 11.1 percent of net sales, and the company expects to keep its marketing budget in the 10-12 percent range for the full year. Under Armour maintains its forecast for 2007 sales in the range of $560-580 million and earnings of $74.5-77.5 million, both representing increases of 30-35 percent.