Under Armour (UA) is executing the most radical step yet in its turnaround plan—the separation of the Curry Brand. This strategic shift allows the brand, launched with Stephen Curry in 2020, to operate independently, granting the NBA star greater control over its growth. This major move signals UA’s commitment to "discipline and focus" over high-profile partnerships.
Cuts fund core brand "Discipline"
The move is central to UA’s expanded restructuring, which now involves up to $255 million in charges for Fiscal 2025, including contract terminations. Founder and CEO Kevin Plank framed the decision: “For Under Armour, this moment is about discipline and focus on the core UA brand... And for Stephen, it's the right moment to let what we created evolve on his terms.” Despite the costs, UA expects efficiency benefits, raising its Fiscal 2026 adjusted operating income outlook to $95 million to $110 million.
Low revenue impact justifies split
While the overall North America revenue declines, the entire basketball segment, including Curry, only accounts for an estimated $100 million to $120 million in Fiscal 2026 revenue. This low contribution lessens the financial risk of the split. Curry stated, “Under Armour believed in me early... and gave me the space to build something much bigger... I'll always be grateful for that.” The separation is the boldest gambit yet to elevate the core UA brand and streamline operations amidst a predicted 4% to 5% full-year revenue decrease.
