Under Armour endures tarnish

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Under Armour Inc., known for its "We Must Protect This House" advertisement, must protect its brand name before it goes head-to-head with Nike and Adidas.

The Baltimore sports apparel company has gained steady traction in the $13 billion U.S. sports apparel market, but a recent immigration raid is testing its mettle.

On March 30, a federal sting revealed that Under Armour had hired illegal aliens through the Jones Industrial Network, a temporary employment agency in Baltimore.

One of eight Baltimore businesses targeted in the raid, Under Armour maintained that it was unaware that the employees were illegal aliens.

"At Under Armour, we are patriots first and last, and we're fully committed to compliance with all laws and regulations," said Kevin Haley, general counsel for Under Armour.

"We're furious that apparently one of the temp agencies we use was not so committed or gave the appearance of being not so committed," Mr. Haley said.

After the raid, shares of Under Armour fell 13 cents on April 2, and then quickly rebounded to $52.28 the next day, a sign of the company's brand resilience.

Shares of Under Armour Inc., rose 64 cents yesterday, and closed at a six-month high of $52.82.

The 10-year-old company cannot afford to have its brand name tainted, especially since it has become somewhat of a status symbol.

"People who have a lot of money and can choose to wear anything, choose Under Armour. I think that is fascinating," said Angelique Dab, a senior research analyst at Nollenberger Capital Partners, a San Francisco investment company.