Under Armor breaks up with Stephen Curry

under armor and Stephen Curry announced Thursday that they have mutually agreed to end their 13-year partnership, effective immediately.

The sudden announcement separates the Curry brand, which makes basketball shoes and apparel, from Under Armor, as the sportswear brand struggles to regain sales. As part of the split, Curry will maintain sole ownership of the Curry brand and will be free to find another retail partner. Under Armor will release the Curry 13, Under Armor’s last Curry branded shoe, in February.

“For Under Armor, now is a time for discipline and focus on our core UA brand at a critical stage in our business restructuring,” Under Armor CEO Kevin Plank said in a statement. “And this is the perfect time for Stephen to take what we’ve created and evolve it the way he wants. We will always be grateful for what he brings to the UA team.”

“My commitment to what the Curry brand stands for, what I stand for, and its mission will never change. It’s only gotten stronger,” Curry said in a statement. “We are excited about our future with a focus on aggressive growth, along with our continued commitment to continuing to show up for the next generation.”

The merger between Under Armor and Curry was announced in tandem with the expansion of the company’s restructuring plans. The company now expects to incur costs of $255 million, including the separation of the Curry brand, additional terminations, impairment charges and severance payments, an increase of $95 million from previously announced costs.

Under Armor’s basketball business, which includes the Curry brand, is expected to generate revenue of $100 million to $120 million during the current fiscal year, which ends early next year, the company said in a news release. The company said it does not expect the separation to have a “material impact” on Under Armor’s results or profitability.

Under Armor’s parting ways with Curry, one of the most successful and widely recognized basketball players of his generation, comes at a difficult time for the brand. The company has experienced a revolving door of top leadership, sales have declined for eight straight quarters, and Plank is trying to position the company as a premium brand at a time when consumers are spending less on new clothes and shoes.

Additionally, the competitive landscape has changed dramatically since Plank founded his business in 1996. These days, even industry leaders nike The company has struggled to maintain market share in the face of startups like On and Hoka that are attracting top athletes and attracting a new generation of customers. To reignite sales, Plank said he has been working to revise Under Armor’s assortment and more clearly redefine the brand with strategies that will begin appearing on shelves, in stores and on social channels this fall/winter season.

Under Armor stock has fallen about 40% this year. Nike and Adidas, both of which have partnerships with numerous top NBA players, did not respond to requests for comment.

Curry’s partnership with Under Armor has long been a focus for the brand and was likely a key part of its turnaround strategy. Considering Under Armor’s business situation, the sudden breakup raises questions about what led to the breakup.

Over the past nine years, Curry has been mentioned in nearly every quarterly earnings call Under Armor has held, according to a review of records dating back to 2016. However, there was no mention of Curry or the partnership in the company’s latest financial report, released last week.

During the conference call, Plank talked about the brand’s opportunities in football and hinted there could be more in basketball.

“A category like basketball is about $100 million globally for all of us, and we think that’s incredible as a $5 billion company that we can’t leverage this in bigger and better ways,” Plank said. “That means we’re undervalued compared to the potential we have and the opportunities we have to develop it. So we’re getting closer to positioning ourselves where we have the right to play, where we have the right to win, but I think we can improve a little bit more.”

In 2013, Curry shocked the sneaker world by signing with Under Armor instead of Nike. At the time, Under Armor was a much smaller brand, but Curry was drawn to the company’s “underdog mentality.”

Curry told CNBC Sports earlier this year that he hopes the Curry brand transcends his playing career and becomes a brand that other athletes endorse, similar to Nike’s Jordan Brand. The four-time NBA champion and two-time league MVP is 37 years old, nearing the end of his basketball career and starting to focus more on golf and other business endeavors outside of basketball.

The Curry brand was launched in 2020. In 2023, the brand signed a new long-term deal, installing Curry as president under the Under Armor banner. As part of that deal, the 11-time NBA All-Star was awarded 8.8 million shares of Under Armor common stock, worth $75 million at the time, among other awards and incentives.

Under Armor will continue to develop new products for UA Basketball even after parting ways with Curry, the statement said.

“This move allows two strong teams to bring out the best in each,” Plank said in a statement. “Under Armor is focused on product innovation and performance for athletes at all levels. The Curry brand now has the independence to decide its own future, which is good for Stephen and good for UA.”

— CNBC’s Jessica Golden contributed to this report