Under Armour Stock Slumps Following CEO, Board Shakeup

Under Armour (UA) shares fell more than 12% in intraday trading Thursday, a day after the company announced a change in corporate leadership.

As of April 1, Under Armour founder Kevin Plank will return to the company in the chief executive role, replacing Stephanie Linnartz, who will step down after just over a year leading the apparel company. Linnartz will stay with the company in an advisory role through the end of April.

Plank will be Under Armour’s third CEO since he originally left the post in 2019. Plank had remained on the company’s board as he was succeeded by Patrik Frisk, who resigned in May 2022.

Linnartz, a longtime executive with Marriott (MAR), was announced as Frisk’s replacement in December 2022, and assumed the role in February 2023. As Plank steps back into the role of CEO, his current role as chair of the board will be filled by Mohamed El-Erian, who has been on Under Armour’s board since 2018.

The apparel company did not provide an explanation for the changes, but thanked Linnartz for her contributions to Under Armour’s future.

“On behalf of the full team, I want to thank Stephanie for her contributions to Under Armour. We deeply appreciate her hard work and dedication,” Plank said. “During her tenure, she strengthened the leadership team with executive hires in critical areas, including product, design, supply chain, consumer connectivity, and regional management. Her prior experience leading major brands was instrumental in focusing our consumer strategy, including the launch of the U.S. loyalty program, UA Rewards. Her efforts have helped set us on the right path, and we wish her success in her future endeavors.”

Linnartz said in a statement that she was “honored to have served as Under Armour’s President & CEO,” and will continue to support the brand.

The sudden leadership change raised some concerns among analysts and investors. Wedbush analysts said it “brings a layer of inconsistency and uncertainty” adding, “we believe that this move will make the sentiment hurdle that the company needs to overcome even higher.”

Under Armour shares were down 12.6% at $7.08 as of about 12:25 p.m. ET Thursday. They’ve lost more than 18% of their value in 2024 so far.