Stephen Curry and Under Armour are officially breaking up.
The NBA star with the Golden State Warriors and the sportswear company said in a statement on Thursday that they have mutually agreed to end their 13-year partnership, separating Curry from Under Armour as the retailer undergoes a broader restructuring.
According to the press release, Under Armour will still release the Curry 13 shoes in February, but that will be the final sneaker produced under their collaboration.
“For Under Armour, this moment is about discipline and focus on the core UA brand during a critical stage of our turnaround,” Under Armour CEO Kevin Plank said in a statement. “And for Stephen, it’s the right moment to let what we created evolve on his terms.”
A person with knowledge of the separation told Business Insider that the Curry brand can look for new partners and investment.
The brand has been struggling with declining sales for the past eight quarters, executive turnover, and a restructuring plan that the company estimates to cost $255 million. That figure now includes costs associated with separating from the Curry brand.
The collaboration with Curry is expected to bring in at least $100 million in revenue over the current fiscal year for Under Armour, but the company said in the press release that the separation won’t have a “significant effect” on the company’s profitability.
On Thursday, Jefferies analysts, led by Randal Konik and Corey Tarlowe, said Under Armour CEO Kevin Plank was “getting back to the basics” with the Curry split.
“Parting ways with Curry makes so much sense. He’s a great athlete, but we always questioned his marketability and believed the Curry shoes and apparel products never resonated with a wide audience,” the note said.
They added, “With Curry gone and new CFO on the way, we think UAA is positioning itself for an eventual turn.”
Under Armour stock was down 2% on Thursday. It’s down nearly 50% in the past year.
Curry first joined Under Armour in 2013, after choosing the significantly smaller “underdog” brand over Nike to collaborate in creating sneakers. The Curry Brand then debuted in 2020, and by 2023, inked a long-term extension that made Curry its president while remaining under Under Armour’s umbrella. As part of that deal, the 11-time All-Star winner received 8.8 million Under Armour shares that were worth about $75 million at the time, alongside additional awards and incentives.
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