Under Armour cuts ties with Steph Curry in bold restructuring gamble
Under Armour is severing ties with basketball icon Steph Curry and spinning off his branded product line. The move is part of the sportswear giant's expanded restructuring plan, adding another $95 million in transformation costs.
The decision signifies a significant shift for the brand, which now anticipates an operating loss of up to $71 million for the fiscal year ending March 2026—reversing earlier profit projections.
The split from Curry could help Under Armour refine its brand identity. The company has long leveraged the athlete's popularity, but leadership now seems focused on a broader overhaul.
Chairman Kevin Plank is spearheading the restructuring effort. The program aims to simplify product lines, tighten distribution, and reduce costs. However, success hinges on management's ability to consistently implement these changes.
Under Armour's financial outlook has dimmed. Instead of the previously forecast profit, the company now expects an operating loss between $56 million and $71 million. Investors are closely monitoring the situation, as the stock's performance depends on whether the restructuring can stabilize the business.
The expanded plan includes deeper cuts and operational adjustments. With an additional $95 million earmarked for transformation, the company is gambling on a leaner structure to regain profitability.
The end of the Curry partnership heralds a new direction for Under Armour. The company's future now rests on its ability to streamline operations and control costs.
Investors face uncertainty, as the restructuring's success remains unproven. The next fiscal year will be a litmus test for whether the changes can reverse the company's financial downturn.
