Struggling through its "most difficult year since going public, Under Armour has lost several top executives and reshuffled management in recent months," according to Lorraine Mirabella of the Baltimore SUN. Such turnover is to "be expected," but others "see the recent moves as a sign of instability as the Baltimore athletic apparel brand struggles with growing pains and massive shifts in the retail market." UA has "reported losses in two quarters this year and its first sale decline since it went public" in '05, all while its stock has "plunged." Besides a "restructuring announced in August, which included cutting 280 jobs, the company also is moving from a structure focused on specific products, such as shoes, to one organized into 11 categories." Some "recent management changes have to do with that ongoing transition," while others have to do with "realigning employment and job functions with a slower pace of growth." Among the big moves at UA are the addition of President Patrik Frisk, who started in July "just before the company announced its restructuring," as well Strategic Advisor Kip Fulks, who co-founded the company with Kevin Plank, "taking a sabbatical." UA CMO Andy Donkin and Senior VP and GM/Women’s & Youth Categories Pam Catlett also have "left the company." Motley Fool analyst Jason Moser said that the turnover "shows the company is taking steps to fix problems." He noted that some UA problems have been "self-inflicted damage," such as "taking on excessive debt to acquire several fitness app companies." Moser said that UA also "allowed inventory to build up to get products to consumers more quickly," leading to "deep discounting that hurt profit margins." He added that the executive shifts "may be an acknowledgment" that UA "needs to take the business in a different direction" (Baltimore SUN, 12/10).
