Under Armour's CEO, Kevin Plank, to resign from his position
Sportswear retailer Under Armour has unveiled a multi-year leadership transition plan, with CEO Kevin Plank stepping down and moving into the role of President, focusing on key areas, while a new CEO takes over day-to-day operations. The change, effective from January 1, 2023, is aimed at ensuring continuity and clear communication with stakeholders throughout the process.
The new CEO will be Patrik Frisk, who has been with Under Armour since 2017, serving as President and Chief Operating Officer. Frisk joined the brand with a passion for its iconic status and its demonstration of the power of sport and premium experience. He will also join Under Armour's board of directors.
In his new role, Plank will focus on product elevation, amplifying the brand story, and stewarding the company's strong team culture. He will take on the position of executive chairman and brand chief.
The change was welcomed by Wall Street as a "net positive" for Under Armour, which has struggled financially in recent years, falling behind rivals Nike and Adidas. Shares of Under Armour were up in premarket trading following the announcement.
The leadership change comes amidst reports of issues within Under Armour's corporate culture. Last year, two executives were fired due to their corporate spending habits, and an expose by the Wall Street Journal on the company's culture was published. Additionally, a former executive filed a lawsuit over the summer claiming she was fired for reporting inappropriate conduct at Under Armour.
Despite these challenges, Under Armour's team of analysts believes that the appointment of Patrik Frisk as CEO could help take the company to a higher level. Frisk brings a wealth of retail experience to the role, having served in leadership positions throughout the industry, including as CEO of the Aldo Group and various positions at VF Corporation.
The change in leadership could also bring new ideas for Under Armour's ongoing transformation. Frisk believes that, with the right harnessing, sport and premium experience are capable of unlimited possibilities. The new CEO's vision, combined with Plank's focus on the brand's core values, could mark a fresh start for Under Armour in the competitive sportswear market.
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