Under Armor CEO Patrik Frisk to resign, interim boss to take over

Patrik Frisk, recently named CEO of Under Armor, speaks at the 2020 Under Armor Human Performance Summit on January 14, 2020 in Baltimore, Maryland.

Olivier Douliéry | AFP | fake images

Under Armor said its chairman and CEO, Patrik Frisk, will step down effective June 1 while the sportswear retailer searches for a replacement.

In the meantime, current COO Colin Browne will serve as president and chief executive officer, the company said Wednesday in a news release. Frisk is expected to remain with Under Armor as an advisor until September 1.

Frisk didn’t give a reason for his unexpected departure. He did not immediately respond to CNBC’s request for comment.

The former CEO of footwear holding company Aldo Group joined Under Armor in 2017 and took over as CEO from company founder Kevin Plank in January 2020.

Plank told CNBC in a phone interview Wednesday night that this will allow the company to start a new chapter of growth, particularly by bolstering its e-commerce operations.

“We think we’re on our front foot now,” he said. “And as we look to the future, we feel this is the right time for us to take a real growth perspective.” Plank later said, “We have the ability to be a much better digital company.”

Plank added that he is not currently being considered for the CEO position.

During his tenure, Frisk helped propel Under Armor through massive change, which also took place amid the Covid-19 pandemic.

Frisk worked to limit the number of discounts Under Armor does with third-party retailers in an attempt to boost profits. He also tried to make the brand look more premium next to peers like Nike and Lululemon.

But that has not come without challenges. Just earlier this month, Under Armor said that global supply chain hurdles were still hurting its business as fresh Covid lockdowns in China reduced demand. He offered a disappointing outlook for fiscal 2023, which runs from April 1 to March 31 of next year.

Under Armor said it will conduct internal and external searches for its new CEO.

“I am extremely proud of what we have accomplished as a team,” Frisk said in a statement issued Wednesday. “Together, we have done a tremendous amount of work to strengthen this iconic brand while significantly consolidating its operations.”

The stock fell more than 3% in extended trading. Under Armor shares are down 50% year to date.

Read Under Armor’s full press release here.

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