By CultureBanx Team
- Under Armour’s Curry Brand is poised to compete with Nike’s Jordan Brand
- Total revenue for Under Armour’s year ending September 30 was $4.51B
Curry Brand, a collaboration between Under Armour (UA -0.94%) and NBA star Steph Curry is on a mission to compete with Nike’s (NKE +0.37%) Jordan brand. Curry took an equity stake in the latest deal extension that could make the brand a sports and cultural staple. Nike’s Jordan Brand does over $3 billion in annual sales, compared to Under Armour’s total revenue for the year ending September 30 that was $4.51 billion. Since the company has been losing younger consumers attention and money, can the Curry Brand do for Under Armour, what the Jordan Brand has done for Nike?
Why This Matters: The company has been losing ground with the highly sought after Gen Z and millennial consumer group. A Piper Sandler survey found that Under Armour has been No. 1 on a list of brands “no longer worn” by male teens for a year. On the other hand the survey noted Nike has maintained its No. 1 spot as the favorite apparel brand among teens for a decade.
Under Armour has been No. 1 on a list of brands “no longer worn” by male teens for a year
Even Curry seems to be worried about the long-term viability of Under Armour. Two years ago, the company reportedly promised Curry his own sub-brand when he was concerned about sales of his Curry 3 shoes. Let’s hope the Curry Brand really takes off overseas, because in Under Armour’s most recent earnings report North America revenue fell 5%, but international sales increased 18%.
The Jordan Brand has experienced a commanding grip on the athletic apparel and footwear industry, thanks to notable athletes including Russell Westbrook, Jayson Tatum and Chris Paul. Not to mention it’s seven year, $75 million sneaker deal with basketball phenom Zion Williamson.
Keep in mind that Michael Jordan hasn’t played professionally since 2003 and his Brand still dominates the retro basketball shoe market with a 65% share in 2017 and Jordan’s cut is around $100 million, per market researcher NPD Group. So if Curry and Under Armour are able to make this new brand successful, it could prove to be very lucrative for both parties long after he retires from the NBA.
What’s Next: The new brand will invest a percentage of annual revenue in “under-resourced” communities. Additionally, it will expand to more categories including running and women’s. Curry Brand’s performance basketball and golf footwear will be available on December 11.
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