Shares of apparel and footwear company Under Armour Inc UA UAA fell after hours Wednesday on the heels of an announcement the company’s CEO was stepping down.
What Happened: Under Armour announced Wednesday that CEO Patrik Frisk is stepping down from his role of CEO, president and as a member of the Board of Directors. The move will be effective June 1, 2022.
“It has been the greatest privilege of my career to serve Under Armour athletes, customers, shareholders, and teammates,” Frisk said.
Frisk will remain an advisor to Under Armour until Sep. 1, 2022.
“On behalf of the board, I want to thank Patrik for his valuable contributions to Under Armour over the past five years,” Under Armour chairman and founder Kevin Plank said. “During his tenure, we made significant strides in advancing enterprise-wdie operational excellence.”
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What’s Next: The Under Armour Board of Directors is launching a comprehensive search for a permanent successor to Frisk.
Chief Operating Officer Colin Browne will serve as interim president and CEO beginning June 1, 2022 and until a successor is named.
Browne was credited with helping boost the company’s direct-to-consumer model and digital transformation.
Plank said Under Armour is evolving and has a huge opportunity ahead.
UA Price Action: Under Armour shares are down 3% to $9.45 in after-hours trading on Wednesday. Shares closed down 7% to $9.71 on Wednesday versus a 52-week range of $9.07 to $22.99.
Under Armour shares have lost 46% of their value over the last five years.
Photo by DeltaSquad833 via Wikimedia.
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