Under Armour, Inc. (NYSE: UA) shares saw a downturn on Friday, reacting to the company's disclosure of an enlarged restructuring initiative for fiscal year 2025 and the planned division of its Curry Brand in collaboration with Steph Curry.
The apparel giant has greenlit an extra $95 million in restructuring expenditures, pushing the total projected costs under its fiscal 2025 plan to an estimated $255 million. These charges encompass various elements including employee separation packages, contract terminations, asset value reductions, and other expenses related to the company's transformation efforts. A portion of these costs, up to $107 million, will be cash-based, with $34 million earmarked for severance and benefits, and $73 million dedicated to strategic transformation projects. The remaining $148 million consists of non-cash charges, primarily for contract exits, facility and software write-downs, and other asset-related adjustments.
Furthermore, Under Armour and basketball icon Steph Curry have formalized an agreement to establish the Curry Brand as an independent entity. Looking ahead to fiscal year 2026, Under Armour projects its comprehensive global basketball division, including the Curry Brand, to generate between $100 million and $120 million in revenue. The company maintains that this brand separation is not expected to materially affect its consolidated financial outcomes or overall profitability. While the Curry Brand will operate autonomously, Under Armour will continue to support its legacy by launching the Curry 13, the final collaborative shoe, in February 2026, with subsequent collections available until October 2026.
This strategic realignment demonstrates a commitment to optimizing operational efficiency and refining brand portfolios, positioning the company for long-term growth and market relevance in a competitive landscape.