Under Armour Stock: Symbolic Low Point
Under Armour is cutting costs and reshaping its business after a difficult year. The company’s revenue dropped 4.7% in the third quarter, falling to $1.33 billion. Its stock has also lost nearly half its value since January, now trading close to a 52-week low.
The sportswear brand has ended its decade-long partnership with basketball star Stephen Curry. The Curry Brand team, central to Under Armour’s basketball strategy, has been disbanded. No other company has been named as Curry’s new sponsor, and no official date for the split was announced.
A broader restructuring plan aims to save around $50 million. However, the changes come with severance costs of nearly $95 million. Analysts at Wall Street Zen downgraded the stock from Hold to Sell after weak quarterly results.
The company’s struggles reflect wider challenges in the sports apparel market. Nike’s recent slump in China has added pressure, affecting Under Armour’s performance. As a result, the brand is being removed from the S&P MidCap 400 Index and moved to the smaller S&P 600 due to its shrinking market value.
The next quarterly report will show whether Under Armour’s cost-cutting and restructuring can steady the business. Without Curry as its leading ambassador, the company faces a key test. Investors and analysts will be watching closely for signs of recovery.
