Under Armour announced the separation of its 13‑year partnership with Stephen Curry, ending the Curry Brand and expanding its restructuring plan to $255 million in charges. The move signals a shift toward a disciplined focus on the core Under Armour brand.
The partnership, which began in 2013, had generated an estimated $100‑$120 million in revenue for the global basketball business in fiscal 2026, according to the company’s guidance. The final Curry 13 sneaker will launch in February 2026, after the brand’s last collaboration.
The restructuring follows a series of cost‑cutting and SKU‑reduction initiatives aimed at improving gross margin and operational efficiency. Under Armour’s FY2025 results show revenue of $1.1 billion in Q1, $1.33 billion in Q2, and $1.4 billion in Q3, all down year‑over‑year. Gross margin improved to 48.2 % in Q1, slipped to 47.3 % in Q2, and rebounded to 47.5 % in Q3. Earnings per share were $0.02, $0.04, and $0.00 respectively, with Q2 beating consensus by $0.02 and Q3 missing by $0.02.
Management explained that the restructuring will allow Under Armour to concentrate on its core product lines while giving the Curry Brand the flexibility to evolve independently. CEO Kevin Plank said the company is “encouraged to see signs of brand momentum in North America” and that the move “is about discipline and focus on the core UA brand during a critical stage of our turnaround.” The company has raised its FY2026 adjusted operating income outlook to $95 million–$110 million, reflecting confidence in the cost‑control gains and the expected lift from a leaner portfolio.
Investors reacted positively to the announcement, with analysts noting that the restructuring signals a commitment to long‑term profitability. The guidance for full‑year EPS of 3–5 cents, while below analysts’ 6‑cent expectation, is supported by the company’s focus on margin expansion and reduced promotional spend.
The separation of the Curry Brand is expected to have a limited impact on overall profitability, as the brand’s projected revenue is a small portion of Under Armour’s total sales. The company’s broader strategy of streamlining product lines and strengthening its premium positioning is intended to improve operating leverage and support a more resilient business model in a competitive athletic apparel market.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.