What's Happening?
Under Armour has announced the end of its partnership with NBA star Steph Curry, concluding a collaboration that lasted over a decade. Curry, who joined Under Armour in 2013 after his contract with Nike expired, had established the 'Curry Brand' within
the company in 2020. Following the split, the Curry Brand will become independent of Under Armour. The company plans to release the Curry 13, the final shoe under the Curry Brand and Under Armour collaboration, in February, with additional colorways and apparel collections available through October. Under Armour has been facing challenges such as fluctuating tariffs and weak consumer spending, leading to a forecast of lower annual sales and profit. CEO Kevin Plank, who returned to the role in April 2024, has been leading an overhaul to focus on the core UA brand, including inventory management, reduced promotions, and job cuts.
Why It's Important?
The termination of the partnership with Steph Curry is a significant move for Under Armour as it navigates a critical stage in its turnaround strategy. The decision reflects the company's focus on restructuring and streamlining its operations amid economic pressures. For Curry, the split allows him to evolve the Curry Brand independently, potentially expanding its reach and influence in the sportswear market. Under Armour's restructuring efforts, including the Curry split, are part of a broader plan to stabilize its financial performance and adapt to changing market conditions. The company's ability to manage these transitions effectively will be crucial in maintaining its position in the competitive sportswear industry.
What's Next?
Under Armour has expanded its restructuring plans, incurring an additional $95 million in charges related to the Curry split. The company does not anticipate a significant impact on its consolidated financial results or profitability due to the separation of the Curry Brand. It estimates its global basketball revenue, including the Curry Brand, will be between $100 million and $120 million in fiscal year 2026. As Under Armour continues its restructuring, stakeholders will be watching closely to see how the company navigates these changes and whether it can successfully revitalize its brand and financial performance.
Beyond the Headlines
The split between Under Armour and Steph Curry highlights the evolving dynamics in athlete-brand partnerships. As athletes increasingly seek to establish their own brands, companies must adapt to these shifts while balancing their own strategic goals. The move also underscores the broader challenges faced by the sportswear industry, including economic pressures and changing consumer preferences. How Under Armour and Curry manage their respective paths post-split could influence future collaborations between athletes and brands.
