The athletic apparel company is undergoing a profound corporate transformation that extends well beyond typical restructuring measures. As management aggressively tightens spending, Under Armour has unexpectedly terminated its long-standing partnership with superstar athlete Stephen Curry. Can this struggling corporation achieve the pivotal turnaround it desperately needs?
Financial Performance Highlights Deep-Seated Challenges
This restructuring initiative unfolds against a backdrop of significant market difficulties. Recent quarterly results reveal substantial weaknesses across key business segments:
- Total revenue declined by 5% to $1.3 billion
- North American operations experienced an 8% contraction
- Footwear division suffered a dramatic 16% sales decrease
- The company posted a net loss of $19 million
Despite these disappointing figures, Under Armour has raised its adjusted operating income forecast to between $95 million and $110 million. However, under GAAP accounting standards, the company anticipates an operational loss ranging from $56 million to $71 million, alongside an expected full-year revenue decline of 4-5%.
Should investors sell immediately? Or is it worth buying Under Armour?
Strategic Restructuring Carries Substantial Price Tag
Under Armour is implementing severe cost-cutting measures while injecting an additional $95 million into its reorganization efforts. The comprehensive restructuring expenses now total up to $255 million, signaling the company’s commitment to fundamental operational changes. These measures include contract terminations, asset impairments, and severance payments. Management expects the majority of this challenging process to conclude by the end of 2026.
Stephen Curry Partnership Reaches Unexpected Conclusion
In the most surprising development, Under Armour and Stephen Curry are parting ways after more than a decade of collaboration. The jointly developed Curry Brand will become independent, with the final co-designed shoe scheduled for release in February 2026. Company representatives emphasize that this separation will not significantly impact financial results. The global basketball division—including the Curry Brand—is projected to generate between $100 million and $120 million in revenue during fiscal year 2026.
Market participants remain cautious about Under Armour’s turnaround narrative, with shares trading near their annual lows. The critical question remains whether this radical corporate overhaul can reverse the persistent downward trend that has concerned investors and analysts alike.
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