Under Armour said Tuesday that the company expects to take a 1% hit to revenues in its current fiscal year due to the ongoing exit from its brand partnership with Golden State Warriors guard Stephen Curry, part of a broader retrenchment at the apparel and shoe company that chief executive Kevin Plank said will focus Under Armour on “doing much less things much better.”
The Baltimore-based company said that sales for its fiscal 2027, which began April 1, would otherwise be flat apart from the Curry Brand winddown’s impact. Under Armour announced its exit from the basketball star’s signature brand in November, at which time it said it would continue to sell Curry products through October of this year.
The Curry partnership wind-down was the highest-profile example of a broad turnaround at Under Armour in recent months. Over its fiscal 2026, the company reduced the number of products it produces by 25% and restructured itself around 12 sports and activity categories.
“We’re looking at different ways that we can really consolidate our line, the offering that we have, and make it get more intentional,” Plank told financial analysts on Tuesday in discussing results for the most recent quarter, “so the consumer isn’t walking into an environment of, ‘Welcome to Under Armour. We sell a bunch of stuff, what would you like to buy?’ Versus, ‘Here [are] three great things that you couldn’t live without and that only Under Armour could make.’”
Wall Street was nonetheless underwhelmed by Under Armour’s quarterly results, as well as its tepid guidance for the current fiscal year. Shares fell as much as 19% in early trading Tuesday to $4.74. The company reported a loss of $43 million for the three months ended in March, as revenues declined 1% to $1.2 billion, dragged down by sales declines in North America, its core and largest market.
Under Armour recorded $128 million in charges related to its restructuring for the year ended in March.
For the current year, the company expects sales to continue to grow overseas, particularly in Europe and the Middle East, as well as in Asia-Pacific, while North America sales decline about 1%.
Plank, Under Armour’s founder and boomerang chief executive, said one category showing promise is running, as evidenced by signature athlete Sharon Lokedi’s repeat win at the Boston Marathon this year.
For Lokedi to have won back-to-back, Plank said, “it tells the consumer that in the largest market that we have to compete in from a footwear standpoint, that Under Armour can not only compete, but we can absolutely win.”