NBA news: Under Armour the launch of the Curry Brand with NBA star Steph Curry. The 6x NBA All-Star and 2x NBA MVP has been a long time Under Armour athlete. According to CNBC, this is a bid to reach younger consumers and battle with Nike and its Jordan Brand.
The new line will feature shoes and clothes for a variety of sports including basketball and golf. Over time, the brand will be expanded to more sections which will include running and women’s.
“We wanted to make sure we did this as close as possible to the NBA season finally launching … and the fact that we’re launching in between Black Friday and the holidays we think is very opportune. This also gives Steph something to really engage in … he’ll be actively involved in the development of the product. And we’re so excited to see one of our athletes being so involved in the product,” Under Armour Chief Executive Patrik Frisk told CNBC.
Under Armour’s brand image has been hurt by massive discounts provided in department stores and at other off-price chains. The brand is usually connected with high-performance traits and for extreme activities.
In its latest reported quarter, Under Armour sales were about flat from a year earlier, at $1.43 billion, Covid-19 also affected the sales. In North America, income fell 5% to $963 million, while international sales grew by 18% to $433 million.
From 2018 to 2019, Under Armour’s revenue improved by 1% to $5.3 billion. In Nike’s latest fiscal year, the business was hurt by the onset of the Covid pandemic, and revenue dropped by 4% to $37.4 billion.
Looks like Steph Curry may be launching his SC30 Under Armour brand on Dec. 1 as he just posted this clip featuring the new SC30 logo to his instagram account.
“an Under Armour brand” pic.twitter.com/kEzqqfsnhj
— TheWarriorsTalk (@TheWarriorsTalk) November 23, 2020
NBA News: How will the launch of the Curry brand help Under Armour?
The launch of the Curry Brand could help Under Armour gain momentum against its rivals, especially with younger consumers, where it has lost ground.
Nike has secured its No. 1 spot as the preferred apparel franchise among teens for a decade. While Under Armour has been No. 1 on a list of brands “no longer worn” by male teens, according to a survey.
Nike has expanded its Jordan Brand, designed for former NBA star Michael Jordan, to bring in more than $3.5 billion yearly. Lately, Nike has shifted its focus on growing the Jordan Brand to reach more women.
“It’s a new way for us to think about how we financially can drive an initiative, and we think that’s also an exciting business model going forward,” said Patrik Frisk
As of Friday’s, Under Armour shares have dropped almost 23% this year. The company has a market cap of $7.6 billion. Whereas, Nike shares, which have a market value of $210.7 billion, have grown nearly 33% since January.
Hopefully, this new deal with Steph Curry will help them expand their market share more.