Under Armour revealed an update to its 2025 fiscal year restructuring plan that will see the company focus on its core products as its splits from the Curry Brand.
The move, announced on Thursday, is part of a larger strategy to boost financial and operational efficiency by the end of fiscal year 2026. The company initially revealed that this fiscal year it would absorb $160 million in pre-tax restructuring costs. After further consideration, an additional $95 million will be tacked on in a total of $255 million as it looks to concentrate on staples of its footwear and apparel lines.
Meanwhile, the separation from Stephen Curry’s namesake brand as a partner after more than a decade could be seen as a sudden move but will likely save Under Armour nearly $50 million as the restructuring plan comes into focus. Curry is regarded as the marquee name at Under Armour and when he signed with the company 13 years ago, the partnership included apparel, accessories and a signature basketball shoe line.
But in a hyper-competitive footwear landscape dominated by Nike, with Adidas and Puma also factoring in the basketball consumer marketplace, the Curry Brand has lost some of its momentum in recent years and was likely a driving factor in the split. Basketball sales represent around 2 percent of the company’s total revenue and while Curry, at 37, is still a superstar caliber talent, he is leaning toward the end of a Hall of Fame career.
In its second quarter, which ended on September 30, Under Armour saw its revenue dip 5 percent to $1.3 billion as North American revenue was sown 8 percent at $792 million. But sales abroad were up 2 percent to $551 million.
“We delivered results ahead of our prior outlook this quarter and are encouraged to see signs of brand momentum in North America – an important milestone in our turnaround,” Kevin Plank, founder and CEO of Under Armour said in September. “With our strategy, operating model, and go-to-market approach firmly in place, we’re staying disciplined and focused. The response from consumers and partners reflects this execution, driven by stronger product, sharper storytelling, and a renewed belief in the Under Armour brand.”
