The End of an Era: Stephen Curry and Under Armour Part Ways
In a surprising move, Stephen Curry and Under Armour have decided to go their separate ways after a successful 13-year partnership. But here's where it gets interesting: this split comes at a time when Under Armour is facing some significant challenges, including declining sales and a need for restructuring.
The iconic duo's final collaboration, the Curry 13 shoe, is set to release in February, marking the end of an era in sportswear fashion.
Curry, the NBA star known for his exceptional skills on the court, and Under Armour, the sportswear giant, announced their mutual decision to part ways on Thursday. This separation is part of Under Armour's broader restructuring efforts as it navigates through a challenging period.
According to the official statement, Under Armour will release the Curry 13 shoes as planned, but this will be the last sneaker collaboration between the two.
"For Under Armour, this is a moment of focus and discipline on our core brand as we work through a critical phase of our turnaround," said Kevin Plank, Under Armour's CEO. "And for Stephen, it's an opportunity to evolve his brand on his own terms."
A source close to the situation revealed to Business Insider that the Curry brand is now free to explore new partnerships and investment opportunities.
Under Armour has been facing tough times, with declining sales for the past eight quarters, executive turnover, and a costly restructuring plan estimated at $255 million. The separation from the Curry brand is now included in this figure.
Despite the collaboration with Curry expected to bring in at least $100 million in revenue for the current fiscal year, Under Armour assures that the split won't significantly impact its profitability.
Jefferies analysts, Randal Konik and Corey Tarlowe, commented on the situation, stating that Kevin Plank is "getting back to the basics" with this decision. They believe that parting ways with Curry makes sense, questioning his marketability and suggesting that the Curry shoes and apparel may not have resonated with a wide audience.
"With Curry gone and a new CFO on the way, we think UAA is positioning itself for an eventual turn," they added.
Under Armour's stock took a hit on Thursday, dropping by 2%. It has seen a nearly 50% decline in the past year.
Curry's journey with Under Armour began in 2013 when he chose the smaller, underdog brand over the industry giant, Nike. The Curry Brand made its debut in 2020, and by 2023, Curry had signed a long-term extension, becoming the brand's president while still under the Under Armour umbrella. As part of this deal, Curry received 8.8 million Under Armour shares, valued at approximately $75 million at the time, along with additional incentives.
And this is the part most people miss: while Curry and Under Armour are moving on, the impact of their collaboration will continue to shape the sportswear industry. The Curry brand has left a lasting impression, and its future partnerships will be eagerly anticipated.
What do you think about this split? Is it a strategic move for both parties, or do you see it as a missed opportunity? Feel free to share your thoughts and opinions in the comments below!
