Stephanie Linnertz is in even less time Solved many of Under Armor's problems better than expected.
Mr. Linnertz is a veteran executive who was previously number two in the industry. marriott internationalleft the global hotel chain last year to become CEO of . under armor. She took over her sportswear chain, which was in trouble, on February 27, 2023, and took over the company. said today, she plans to step down as CEO at the end of this month after just over a year on the job.she said Her company turnaround strategy would take three years to implement.
Kevin Plank, Under Armour's controversial founder and controlling shareholder, will reassume the role of CEO of the company starting April 1st. He will be the latest „boomerang“ CEO to return to his previous job (a group that includes Disney's Bob Iger and Starbucks' Howard Schultz). He becomes the company's fourth CEO in the last four years.he was the first „got off“ In January 2020, he resigned and became executive chairman, and continues to own 65% of the company's voting shares.
Under Armor has not disclosed the reason for the sudden CEO change, and a spokesperson declined to comment.in LinkedIn Post, Mr. Plank thanked Ms. Linnertz for her contributions to Under Armour, saying, „She has contributed in many important ways, including enhancing our leadership talents in product, design, supply chain, consumer loyalty, and regional management.'' He has helped move the company forward.“ “We still have a lot of work to do, but her leadership has put us on the right track for victory.”
Running Under Armor was always going to be a turnaround job, and Linnertz approached it with his eyes wide open. “I believe in taking calculated risks,” she told me last summer. wrote her profile for luck.
„She hit the ground running and launched a clearly articulated three-year strategy that sets us up for strategic growth,“ Plank said. luck, in an emailed comment at the time. “I couldn’t be more excited to welcome her to Under Armor and get to work with her every day.”
But the challenges Linnerts faced were steep. Since its early heyday, Under Armor has struggled to grow revenue and profits. The company's stock price has plummeted since its peak in 2015, and retail experts have called the company's brand identity confusing at best.
Meanwhile, Mr. Plank's politics and personal life continued to push his company into sometimes unflattering situations. heading. And, as I saw when I visited the company's headquarters in August, Planck remained an inescapable presence at the company long after he stepped down as CEO — where I learned that Planck was a grandmother of Many times I rejoiced at the story of how he started his company in his home's basement. 1996:
“The buildings and clothing lines are numbered either 96 (the year he founded Under Armor) or 37 (KP’s college football jersey number),” I said. I wrote it at that time. „In the hallway of our headquarters, a giant photo of the jersey is displayed next to an enlarged version of Plank's early Under Armor business card with #inspo phrases like 'HUMBLE & HUNGRY BEGINNINGS.' .”
Patrick T. Fallon—Bloomberg via Getty Images
Neil Saunders, an analyst at GlobalData Retail who covers Under Armor, said the continued visible presence of the charismatic founder could pose a problem for the new CEO. “Kevin Plank is still there even though someone else is CEO,” he says. „It's still a founder-led company…and most CEOs don't want backseat drivers.“
Linnertz hired several new senior executives and launched a rewards program to increase customer loyalty, but her strategy didn't bear immediate fruit. fell 6% From a year ago.
„She took over a brand that always had a lot of problems,“ Saunders says. „And a year is really not enough time to make a change.“
Investors initially welcomed Plank's return, and the company's stock rose in after-hours trading. before I slip again. Under Armor also announced that in conjunction with Mr. Plank's appointment as CEO, former PIMCO CEO Mohamed A. El-Erian will become non-executive chairman of the company's board of directors.
“As I reflect on the past year at Under Armor, one of the things I am most proud of is the great talent we have brought to our organization,” Linnertz said. wrote in email To Under Armor employees. She added that Plank's „leadership team and I wish you all the best in your future endeavors.“