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Under Armour announced November 13 that it’s cutting ties with Golden State Warriors star Stephen Curry. The two have been engaged in partnership since Curry left Nike in 2013.
While his shoe company, Curry Brand, is moving on alone, Curry said the severance won’t affect how he operates.
“What Curry Brand stands for, what I stand for and my commitment to that mission will never change,” he said in a release. “It’s only growing stronger. I’m excited for a future that’s focused on aggressive growth with a continued commitment to keep showing up for the next generation.”
The exact reason for the breakup is still unclear. According to a review of transcripts starting in 2016, Curry has been mentioned in nearly all of Under Armour’s quarterly earnings calls in the last nine years. But he wasn’t mentioned at all in the most recent call last week.
Under Armour’s basketball business, along with Curry Brand, should earn the company from $100 million to $120 million in total revenue this fiscal year. It said it doesn’t expect the end of the partnership to have a “significant effect” on its finances.
But the sports apparel company overall may not be in as strong of a position. Its sales have been dropping for the past eight quarters, and it’s seen several changes in leadership. Under Armour is also undergoing reconstruction, which it expects to cost $255 million.
“For Under Armour, this moment is about discipline and focus on the core UA brand during a critical stage of our turnaround,” CEO Kevin Plank said in a statement. “And for Stephen, it’s the right moment to let what we created evolve on his terms. We’ll always be grateful for what he’s brought to the UA team.”
Under Armour is struggling to compete against newer players like On and Hoka. To battle an impending decline, Plank is working on a fresh strategy to redefine the brand, according to CNBC. He says the shift will be noticeable in stores and online soon.
The Curry 13, the last shoe made in collaboration with Under Armour, will be released in February. The athlete is now expected to have the option to partner with and wear other brands.
“Under Armour believed in me early in my career and gave me the space to build something much bigger and more impactful than a shoe,” Curry said in a news release. “I’ll always be grateful for that.”
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Ava Levinson
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