Under Armour climbs after founder Kevin Plank steps down as CEO
- Under Armour announced Tuesday that CEO Kevin Plank will step down. Current chief operating officer Patrik Frisk will replace him in the top spot on January 1, 2020.
- Shares of Under Armour gained as much as 3% on the news.
- The leadership change comes during a time when the company is trying to reinvent itself as a leading sportswear brand.
- Watch Under Armour trade live on Markets Insider.
There will soon be a new leader at Under Armour. After 23 years leading the company he founded in his grandmother's basement, CEO Kevin Plank is stepping down.
Shares of the sportswear company gained as much as 3% in early trading Tuesday after the company announced that Patrik Frisk, the company's president and chief operating officer, will be its next CEO, replacing current chief and founder Plank.
Frisk will take over the position on January 1, 2020, at which time Plank will become executive chairman and brand chief, the company announced in a press release. Before joining Under Armour in 2017, Frisk held multiple leadership positions across his 30 years of experience in the apparel, footwear, and retail industry. He was most recently the CEO of the Aldo Group.
"I joined Under Armour to be part of an iconic brand that demonstrated the power of sport and premium experience, when properly harnessed, is capable of unlimited possibilities," Frisk said in a press release. "Today, I am even more resolute in this conviction."
He continued: "The opportunity that lies ahead of us is incredible. As our entire global team continues to lean hard into our transformation, I am honored to lead this great brand toward the realization of its full potential."
The leadership change comes amid a transformation for Under Armour where it is switching from offense to defense, looking to stay relevant in an ever-changing retail landscape. The company announced a turnaround in 2018 but has yet to realize consistent gains.
In its second quarter earnings release, shares slid 13% when the company reported flat sales in North America, a key region and one that is under Frisk 's leadership, CNBC reported.
Under Armour was up 12% year-to-date through Monday.
