What's Happening?
Under Armour has announced the termination of its partnership with NBA star Steph Curry, effectively separating the Curry Brand from Under Armour. This decision is part of a broader restructuring plan
that includes a $95 million expansion, covering contract terminations, asset impairments, and employee severance costs. The restructuring aims to refocus Under Armour on its core brand, with plans to release the last Curry-branded shoe in February 2026. The Curry Brand, which has been a significant part of Under Armour's basketball business, is expected to generate between $100 million and $120 million in fiscal 2026. Despite the separation, Under Armour does not anticipate a significant financial impact.
Why It's Important?
The separation of the Curry Brand from Under Armour marks a significant shift in the company's strategy, focusing on strengthening its core brand during a critical turnaround phase. Steph Curry has been a key figure in Under Armour's marketing and product development, contributing to substantial growth in its footwear business. The restructuring could lead to cost savings, but Under Armour will need to replace the intangible benefits of Curry's association. Analysts suggest that Curry's influence was pivotal in driving Under Armour's footwear revenue, which has seen a decline from its peak. The move reflects Under Armour's efforts to streamline operations and improve profitability.
What's Next?
Under Armour plans to develop new UA Basketball products and focus on its namesake brand. The company aims to navigate the separation without a significant financial impact, leveraging its restructuring efforts to enhance operational efficiency. As Under Armour releases its last Curry-branded shoe, it will need to strategize on maintaining consumer interest and brand loyalty. The restructuring could lead to new product innovations and marketing strategies to sustain growth in the competitive sportswear market.
