Stephen Curry and Under Armor are officially parting ways.
The NBA star, the Golden State Warriors and the sportswear company said in a statement Thursday that they have mutually agreed to end their 13-year partnership, separating Curry from Under Armor as the retailer undergoes a broader restructuring.
According to a press release, Under Armor will still release the Curry 13 in February, but it will be the last sneaker released as part of their collaboration.
“For Under Armour, this moment is about discipline and focus on the core UA brand at a critical stage in our improvement,” Under Armor CEO Kevin Plank the statement says. “And for Stephen, this is the right time to allow what we’ve created to evolve on his terms.”
A person with knowledge of the split told Business Insider that the Curry brand may be looking for new partners and investment.
Stephen Curry wears sneakers created in collaboration with Under Armour. Ezra Shaw/Getty Images
The brand has struggled with declining sales over the past eight quarters, executive turnover and restructuring plan which the company estimates will cost $255 million. This figure now includes costs associated with the separation from the Curry brand.
The Curry collaboration is expected to generate at least $100 million in revenue for Under Armor in the current fiscal year, but the company said in a press release that the separation will not have a “material impact” on the company's profitability.
On Thursday, Jefferies analysts led by Randal Konik and Corey Tarlow said Under Armor CEO Kevin Plank is “getting back to basics” following the Curry split.
“Parting with Curry makes a lot of sense. “He's a great athlete, but we always questioned his competitiveness and believed Curry's shoes and apparel never resonated with a wider audience,” the note said.
They added: “With Curry's departure and a new CFO on board, we think UAA is preparing for a possible turnaround.”
Under Armor shares fell 2% on Thursday. Over the past year it has fallen by almost 50%.
Curry first joined Under Armor in 2013, choosing to collaborate with a much smaller outsider brand instead of Nike. sneaker creation. The Curry brand then debuted in 2020 and by 2023 signed a long-term extension that brought Curry to the position of president while remaining under the Under Armor umbrella. As part of the deal, the 11-time All-Star received 8.8 million shares of Under Armor stock, worth about $75 million at the time, as well as additional awards and incentives.
