As Under Armour shakes up its C-suite—again—David Bergman continues to offer ‘consistency in the CFO seat’

Good morning. Change has been a constant in the C-suite at Under Armour over the past few years, but not when it comes to the CFO role.

The Baltimore-based apparel and footwear retailer announced on March 13 that Kevin Plank, the founder and controlling shareholder, will become CEO—again—effective April 1. Plank will succeed Stephanie Linnartz, who joined the company as CEO in February 2023. Plank, who founded the company about 28 years ago, stepped down as CEO in 2020.

Linnartz’s departure was a surprise. As my colleague Maria Aspan writes: “Linnartz, a veteran executive who was previously No. 2 at Marriott International, left the global hotel chain last year to become CEO of Under Armour. She had said that her turnaround strategy for the company would take three years to execute.”

The challenges were many, Aspan adds: "Under Armour has struggled to grow revenue and profits since its early heyday. Its share price has plummeted since its 2015 peak, and retail experts call its brand identity muddled at best.”

Although Under Armour (NYSE: UA, UAA) has had some tumultuous years, including charges by the Securities and Exchange Commission in 2021, one constant has been David Bergman. He joined the firm nearly two decades ago and served in a variety of roles before becoming CFO in 2017.

Tom Nikic, analyst and SVP of equity research at Wedbush Securities, wrote in a note to investors following Under Armour’s latest CEO announcement: “The game of ‘musical chairs’ in the CEO seat that UAA has undergone in recent years (3 CEOs in the 4-year gap between Mr. Plank's two tenures) brings a layer of inconsistency and uncertainty to the story that investors don't really want to see.”

But what's Nikic's assessment of Bergman?

“Under Armour has had a lot of problems over the years, but I don't think Dave's been one of them,” he told me.

Since Bergman became CFO, the company's spending and inventory management has become more disciplined, and they're now in a net cash position after the company was “saddled with a lot of debt when he took the reins,” according to Nikic. “Given all the CEO/COO turnover, it's at least somewhat encouraging that there's been consistency in the CFO seat, which has likely been a function of his good relationship with Kevin Plank," he said.

But, Nikic added, there's only so much Bergman can do—the company needs better products, marketing, and execution. And Bergman's long tenure doesn't mean he's bulletproof.

“What I think all the CEO turnover has shown," Nikic added, "is that Kevin Plank is going to win any and all battles against other executives at the company. So if Dave ever runs afoul of Kevin, Kevin is going to get his way."

In February, Under Armour reported earnings for the period ended Dec. 31, with revenue down 6% to $1.5 billion, which aligned with the company’s outlook. In its fiscal year 2024 outlook, the company expects revenue to be down 3% to 4%, compared with a previous expectation of 2% to 4%.

"We remain encouraged by our evolving strategies to turn our inconsistencies into strengths,” Bergman said on the most recent earnings call. Managing the supply chain, tightening expenses, optimizing investments, focusing on cash management, and making prudent capital expenditures, all remain key priorities.

"Without question," Bergman said, "there is much work ahead of us."

Sheryl Estrada
sheryl.estrada@fortune.com

María Soledad Davila Calero curated the Leaderboard and Overheard sections of today’s newsletter.

This story was originally featured on Fortune.com