Dive Brief:
- Under Armour is parting ways with its most iconic athlete. The activewear brand announced Thursday that it was cutting ties with NBA star Steph Curry and would separate the Curry Brand from Under Armour.
- Instead, Under Armour will develop new UA Basketball products and focus on its namesake brand. Under Armour will release its last Curry-branded shoe in February 2026.
- The announcement is tied to a $95 million expansion of Under Armour’s restructuring program. That money will go toward the separation of the Curry Brand from Under Armour, contract terminations, asset impairments, and employee severance and benefits costs. The total estimated restructuring and related charges will now reach up to $255 million.
Dive Insight:
The latest step in Under Armour’s turnaround is the end of a decade-long brand ambassadorship.
Since 2013, Curry has repped Under Armour, with the two launching the Curry Brand five years ago. In 2023, Curry was named president of the Curry Brand and took on even more responsibilities at Under Armour across product development, marketing and other areas.
“For Under Armour, this moment is about discipline and focus on the core UA brand during a critical stage of our turnaround,” Under Armour CEO Kevin Plank said in a statement. “And for Stephen, it's the right moment to let what we created evolve on his terms. We'll always be grateful for what he's brought to the UA team."
Under Armour’s total global basketball business, including the Curry brand, will generate between $100 million and $120 million in fiscal 2026. The retailer doesn’t expect a meaningful impact on its finances from the separation.
In the short-term, the activewear brand raised its fiscal 2026 adjusted operating income outlook thanks to the expanded restructuring actions. Its actual operating results will be worse, with the company projecting an operating loss of $56 million to $71 million compared to a previous expectation for an operating income of between $19 million and $34 million.
While the Curry Brand is likely not a big moneymaker for Under Armour, the company is faced with replacing “the intangible benefits” of working with Curry, according to Needham analyst Tom Nikic.
“While the Curry brand is fairly small at this point (probably less than $100 million of revenue) and the separation will likely yield cost-savings benefits, Mr. Curry is viewed by consumers as one of the key faces of the brand,” Nikic wrote in emailed comments.
Needham analysts estimate that Curry was the main driver of Under Armour’s footwear business during the first two years of their partnership, when revenue in that category grew more than $600 million. If true, that means the Curry Brand was generating “a few hundred million dollars” in fiscal year 2017.
“That would suggest that Curry revenues are down at least 50% from peak, if not more,” Nikic said. “Between the lower gross margin for footwear relative to apparel, the operating overhead required to run a sub-brand, advertising for the brand, and the royalties owed to Mr. Curry, the sub-brand is probably minimally profitable at best (and potentially unprofitable).”
