UA stock drops as Curry 3 sits on shelves.
Stephen Curry is easily one of the most popular players in the NBA but the sales of his third signature sneaker, the Under Armour Curry 3, do not reflect his popularity.
According to ESPN's Darren Rovell, Under Armour lost nearly $600 million of its value after Foot Locker CEO Dick Johnson said the Curry 3, "started off a bit slower than the previous models." After those comments, UA stock dropped more than 4% although Johnson noted that the Curry 3 is still in its "early stages" having only been on sale for roughly one month.
"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.
“I think Under Armour is doing a great job investing in their footwear business,” Foot Locker Chairman and CEO Dick Johnson said on Friday in a presentation with analysts. “The 2.0 and 2.5 Curry shoes in the third quarter performed well. The 3.0 is fairly new into the business. It started off a bit slower than the two previous models.”
One reason for the lack of sales could be the fact that UA upped the price of the Curry 3 to $140 from $130 a year ago, or maybe because the Curry 3 is a functional basketball sneaker strictly designed for the court, not to be worn as a lifestyle shoe like many Air Jordans or other Nike Basketball sneakers.
The Curry 3 is certainly not the most aesthetically pleasing basketball sneaker on the market, especially for those consumers who are more interested in how the sneaker looks rather than how it performs.
Like the Curry 2, there will be a low-profile version of the Curry 3 which could lead to more sales for those who prefer a more everyday lifestyle look, but only time will tell.
The next Under Armour Curry 3 will be hitting retailers this Friday in a murdered out colorway appropriate for the Black Friday festivities.