Former Home of FAO Schwarz to Become Under Armour Flagship: Reports

A year after FAO Schwarz moved out of its well-known Fifth Avenue toy store, the CEO of Under Armour said the sports clothing company is planning a flagship location there, according to reports. 

In a call with investors on Tuesday, CEO Kevin Plank said that the 53,000 square-foot space "is one of the most-recognized and high-traffic areas in all of New York." 

Plank said the company plans to "build the most breathtaking and exciting customer experience ever conceived at retail," Quartz reported

According to Quartz, the stretch of Fifth Avenue between 49th and 60th streets is the most expensive retail area in the U.S. Although it's unclear what Under Armour will pay in rent, FAO Schwartz was dishing out about $20 million every year. 

FAO Schwarz, probably the best-known toy store in the world, closed last July. Owner Toys R Us announced the decision in May of last year, citing the high and rising costs of running the 45,000-square-foot retail space on pricey Fifth Avenue. The company said it may reopen elsewhere in midtown. 

On Tuesday, Under Armour Inc. reported second-quarter earnings of $6.3 million The Baltimore-based company said it had net income of 12 cents per share.

The results matched Wall Street expectations. The average estimate of 15 analysts surveyed by Zacks Investment Research was also for earnings of 1 cent per share.

The sports apparel company posted revenue of $1 billion in the period, which also met Street forecasts.

Under Armour expects full-year revenue of $4.93 billion.

Under Armour shares have increased almost 5 percent since the beginning of the year, while the Standard & Poor's 500 index has increased 6 percent. The stock has declined 12 percent in the last 12 months.

Copyright AP - Associated Press
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