Wall Street is closely monitoring Under Armour Inc.’s financial performance, and the company seems to be moving in a positive direction. Under Armour’s recent decision to part ways with basketball star Stephen Curry is part of a larger restructuring plan aimed at refocusing on its core UA brand.
When Under Armour reported a net loss of $18.8 million on revenue of $1.33 billion for the second quarter, Williams Trading analyst Sam Poser expressed optimism about the company’s trajectory. Poser stated that retail checks align with management’s assessment of the business and believes that the cautious approach taken by retailers amid looming tariffs will benefit the Under Armour brand in the long run.
Poser also noted that consumer interest, especially among younger demographics, is increasing towards the Under Armour brand. However, he highlighted the need for more innovative marketing strategies to further enhance the brand’s appeal.
The decision to end the partnership with Stephen Curry was viewed as a proactive step by William Blair analyst Dylan Carden. He highlighted the company’s focus on offering a tighter assortment of goods at full price with better storytelling to re-engage customers and strengthen the brand’s identity.
Under Armour’s separation from Stephen Curry, scheduled for 2026, is part of a broader cost-saving initiative that could potentially save the company $45 million to $50 million. While Curry has been a key figure for the brand over the past 13 years, analysts acknowledge that the Curry brand’s impact has diminished in recent years.
Needham analyst Tom Nikic emphasized that the Curry brand, generating between $75 million to $100 million in revenue, is considerably smaller than its peak years. Despite Curry’s contributions to the brand, Under Armour is expected to continue selling his products in the near term, with the separation not likely to have a significant impact on the company’s profit and loss statement.
Analysts like Nikic and Jefferies analyst Randal Konik see Under Armour’s restructuring efforts as a positive step towards refocusing on core strengths and improving profitability. Konik particularly commended the decision to part ways with Curry, citing the need to return to the company’s roots and enhance brand equity.
Looking ahead, analysts recommend further streamlining of operations, including reducing factory/outlet footprint and limiting product flow to the off-price channel, to strengthen Under Armour’s position in the market.
Under Armour is facing some challenges in its footwear business, with Konik advising the brand to decrease its stock-keeping units in footwear to simplify its offerings. The strategy of “less is more” could help the brand focus on key products and improve overall sales. Additionally, Konik suggested that Under Armour should prioritize winning back gym participants over casual wearers to strengthen its core customer base.
Another area of concern for Under Armour is its distribution strategy, with Telsey Advisory Group’s Cristina Fernández recommending an exit from Kohl’s to clean up distribution channels and streamline operations. By shrinking its distribution network, Under Armour can focus on key retail partners and enhance brand visibility in the market.
The recent separation of Curry from Under Armour was seen as more of a headline and reputational risk than a financial one, according to Fernández. While the partnership helped Under Armour develop its shoe business, it may have not reached its full potential. The final shoe of the partnership, the Curry 13, is set to be released in February 2026, with additional collaborations available through October 2026.
On a positive note, Under Armour recently unveiled its UA Halo Collection for its footwear line, showcasing a commitment to environmentally friendly production options. The brand also gained consumer awareness after Sharon Lokedi, the second-place winner at the 2025 New York City Marathon, wore Under Armour’s Velociti Elite 3 shoes made to her specifications. These successes highlight Under Armour’s potential for growth and innovation in the competitive footwear market.
In conclusion, Under Armour faces challenges in its footwear business but has opportunities for growth and improvement. By focusing on key products, refining its distribution strategy, and capitalizing on successful partnerships and collaborations, Under Armour can strengthen its position in the market and attract a broader customer base.
