Shares in Under Armour (UA) fell on Thursday following the announcement of a change in the company’s CEO. They lost more than 10% of their value in morning trading with the news that founder Kevin Plank is coming back while CEO Stephanie Linnartz will be leaving her role on 1 April.
Under Armour shares drop with CEO set to move on
Linnartz has been in the role for a little more than a year and has been making significant changes, such as introducing a rewards programme and making high-profile hiring decisions. Analysts are now undecided as to whether the return of Plank is a good thing and whether he will be back for the long term or as a short-term measure. Linnartz was working through a three-year plan for UA and was given the CEO role due to her experience in building digital sales and a loyalty programme at Marriott Hotels (MAR).
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A statement released by Plank said that Linnartz
strengthened the leadership team with executive hires in critical areas, including product, design, supply chain, consumer connectivity, and regional management.
The outgoing CEO said that it was an honour to work for UA and that she would be rooting for the company in the future. UA saw its profits rise in 2023 despite revenue remaining flat at $1.6bn in Q2. Gross profit in this quarter was reported at $752m, which represented 48% of its net revenue. However, it lowered its revenue expectations for 2024, mainly due to the challenges in North America that have seen sales fall there.
