Under Armour Predicts $20M Hit From Curry Brand Exit, Refocuses Core Segments
UAA•Under Armour expects a $20 million second-quarter hit from discontinuing its Curry Brand partnership and will refocus on its core performance apparel and footwear segments. Management highlighted healthy end-consumer demand in its latest earnings call, citing elevated wholesale inventories as the principal drag on margins.
1. Curry Brand Exit and Financial Impact
Under Armour will exit its joint venture with Curry Brand in Q2, triggering a one-time $20 million impairment charge that will reduce royalty revenues and operating profit for the quarter.
2. Strategic Refocus on Core Segments
The company plans to streamline its product portfolio by cutting over 150 SKUs and prioritizing performance apparel and footwear, reallocating marketing spend toward direct-to-consumer and key wholesale partnerships.
3. Earnings Call Highlights Demand Strength
Management stated that end-consumer demand remains robust with global net revenues rising 8% in Q1, but elevated wholesale inventory days—up to 110 versus a targeted 85—are squeezing margins.
