STEPHEN Curry saw his scoring drop with the entry of Kevin Durant to the Golden State Warriors this season. But it’s not the only thing that went down for the reigning back-to-back NBA MVP.
In a report by ESPN’s Darren Rovell, Under Armour CEO Kevin Plank bared that the Warriors star’s latest signature shoe the Curry 3 didn’t perform as expected in terms of sales.
“Our success in basketball hasn't been without its learning. As we launched the Curry 3 late last year, our expectations continued to run high. And while the 3 played very well on court for Stephen Curry and our athletes, a sluggish signature market and a warm consumer reception led to softer-than-expected results,” said Plank during the company's earnings call where Under Armour reported its first quarterly loss as a public company.
"This has created an inventory imbalance that we are working through. One that, yes, is baked into our full-year outlook which hasn't changed and, most importantly, yielded lessons we're applying ahead with the Curry 4 and beyond," he added.
Under Armour already lost close to $600 million of its value with Foot Locker CEO Dick Johnson admitting that the Curry 3 was performing slower in the market than previous models last November.
Price might have been a factor as Curry’s signature line has seen an increase from $120 in the 2015 debut, creeping up to $130 and $135 for the Curry 2 and 2.5, respectively, before the Curry 3 raised it to $140. Retailers have since slashed the price to $99.99 in response to the less-than-expected demand.
Curry’s playoff shoe, the 3Zero, also went back to $120 per pair.
Under Armour’s footwear sales was above target last quarter, up by 2 percent, but pales in comparison to the same period last year when shoe sales went up by 64 percent.
Earning reports for Under Armour as a whole also exceeded expectations as shares soared by more than seven percent in early trading.