When Under Armour first signed a deal with Steph Curry, it seemed like a slam dunk. The sports apparel company was looking to compete with Nike and Adidas in the basketball footwear market, and they locked up one of the hottest young stars in the game to spearhead that effort.
But the Steph Curry 2s sold horribly after becoming the laughing stock of the internet, and the greatly improved Steph Curry 3s haven’t helped regain ground like the company would have hoped. After the company announced the low sales figures for the 3’s on Friday, the company’s stock took a 4% drop, or $600 million worth of value. Via ESPN:
Under Armour lost nearly $600 million of its value as a company Friday, as its stock plummeted by more than 4 percent after the CEO of a major footwear retailer said the latest version of its Steph Curry shoe wasn’t doing as well as expected.
Foot Locker CEO Dick Johnson said the Curry 3 “started off a bit slower than the previous models,” causing a sell-off in the stock market.
While Curry’s products make up only about 5 percent ($200 million) of Under Armour’s total annual business, he is the company’s most prominent endorser.
That’s an incredible amount of company value lost. Still, Under Armour remains happy with their partnership with Curry and optimistic for the future.
We’re optimistic that they [Under Armour] are going to be able to continue to keep that [footwear business] with some momentum behind it and certainly expand their footwear offerings,” Johnson said.