Under Armour (UA) and National Basketball Association star Steph Curry formed a brand to sell footwear, apparel and accessories for multiple sports including basketball and golf.
Curry, who plays for the Golden State Warriors, is one of the best players in the NBA and is a talented golfer.
The formation of the Curry Brand is likely an attempt to challenge Nike’s (NKE) Jordan Brand, named for Chicago Bulls basketball icon Michael Jordan, CNBC reports.
That brand generates $3.5 billion of sales annually, compared with Under Armour’s total revenue of $5.3 billion last year, according to CNBC.
The Curry Brand will begin offering basketball shoes Dec. 11. It will ultimately expand to running and women’s products, Under Armour said.
The Baltimore company has struggled over the past five years, with its stock plunging 84%.
Under Armour shares recently traded at $14.46, down 1.7%. The stock has slumped 24% year to date.
Morningstar analyst David Swartz was impressed with the company’s third-quarter earnings but remains wary of the stock.
“After a huge loss in the first half of 2020, no-moat Under Armour rebounded to a surprising profit in the third quarter, as athletic and athleisure apparel has outperformed most other clothing segments,” he wrote in a commentary Oct. 30.
“Based on the rebound in sales, we expect to increase our per-share fair-value estimate on Under Armour of $11.30 by a mid-single-digit percentage.” He hasn’t acted as of Monday.
In any case, “we view [the] shares as fully valued and remain concerned about the possible impact of virus-related restrictions in some areas,” Swartz said.
Under Armour closed at $12.23 on Oct. 30.