Under Armour puts founder Kevin Plank back in charge as CEO Stephanie Linnartz exits
Dive Brief:
Under Armour on Wednesday announced a surprise CEO transition, with Stephanie Linnartz stepping down from the position after little more than a year in the role. Founder Kevin Plank will take the reins from her on April 1, according to a company press release.
Linnartz will remain as an adviser through April 30. In connection with Plank’s appointment, he will transition out of his role as executive chair of the board, while board member Mohamed El-Erian will become non-executive chair of the board.
"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 in a statement.
Dive Insight:
Just 13 months into her tenure at Under Armour, Linnartz is already out as CEO. The Marriott veteran took over in 2023 less than a year after former CEO Patrik Frisk was ousted (Frisk himself had only run the business for two years). Under Armour Chief Operating Officer Colin Browne ran the company in the interim.
Under Armour said the retailer entered into a separation and release agreement with Linnartz on Sunday, ensuring benefits including a $2.6 million cash payment, medical premiums for up to two years and rent at Linnartz’s current apartment through mid-2024.
Plank, who led Under Armour from its founding in 1996 through the end of 2019, has been out of the top spot for less than five years prior to his return. At the time of his departure, analysts praised the idea of bringing in some “new blood” at a retailer that had seen growth stagnate. Frisk, who replaced Plank in 2020, was groomed to take on the CEO role and came in with high expectations, but exited just two years later as Under Armour’s growth continued to lag rivals.
In taking back the top spot, Plank thanked Linnartz for her efforts and said in a statement that he looks forward to “seizing the opportunities ahead” for Under Armour.
"During her tenure, [Linnartz] strengthened the leadership team with executive hires in critical areas, including product, design, supply chain, consumer connectivity, and regional management,” Plank said in a statement. “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.”
Indeed, Linnartz was in the midst of overhauling Under Armour’s C-suite, which recently saw the exit of Browne, Chief Product Officer Lisa Collier and other roles. During her last earnings call, Linnartz highlighted that in addition to a new chief of product and head of the Americas, named in January, Under Armour over the months had also brought on a new: chief consumer officer, chief communications officer, chief design officer, chief supply chain officer, leader for the EMEA region and senior vice president of DTC in the Americas.
The business is also in the middle of a pivot to a more athleisure-focused offering and has brought on new designers, including John Varvatos, to improve its offering.
“The dramatic change of leadership at Under Armour, so soon after appointing Stephanie Linnartz as CEO, is emblematic of a brand that can’t quite decide which direction it wants to go in,” GlobalData Managing Director Neil Saunders said in emailed comments. “The reasons for Linnartz’s departure are not fully known. However, culturally, Under Armour is a very difficult company to lead. It still retains much of the DNA from its founding, and Kevin Plank has very distinct views about the brand and how the company should be run.”
Financially, Under Armour has continued to struggle in recent months, with revenue declining 6% in Q3 to $1.5 billion. In North America, the retailer’s largest region, revenue fell 12%.
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