Nike, Under Armour fight over new noncleated soles

By Alexandria Sage

LOS ANGELES, March 10 (Reuters) - That pair of scuffed running shoes you wear to the gym may not look like much, but they represent a battleground between a sports apparel upstart and the industry Goliath over a newly minted market.

This spring, Nike Inc (NKE.N: Quote, Profile, Research) and fast-growing Under Armour Inc (UA.N: Quote, Profile, Research) will both launch next-generation cross-trainers that are a quantum leap from the multi-sport sneakers that have descended from trendy to tired in the past few decades. The new shoes are designed to handle various training activities, from sprinting to pumping iron, within a specific sport.

Running shoes, often the default training footwear, aren't properly cushioned and don't maximize propulsion or allow for side-to-side movement, experts say.

Under Armour's new cross-trainers mark the first step in its conversion into a footwear company that also makes popular sports apparel instead of vice versa.

Under Armour, which began in 1996 by making snug clothing that wicks sweat away from the body, is essentially throwing down a glove on Nike's playing field.

"It's not waving a flag and saying, 'We won, aren't we great?' as it is, 'This is Under Armour!'" Chief Executive Kevin Plank told Reuters. "We're sticking that flag in the ground and saying, 'We're going to be here a long time.'"

Under Armour's men's and women's apparel sales grew about 35 percent in 2007, and its cross-trainers are the next step up from the cleated shoes it started making only in 2006.

Analyst Matt Powell of research firm SportsOneSource said Under Armour -- which is taking preorders before its shoes arrive in stores in May -- knew it needed to make both footwear and apparel to become a major industry player.