Under Armour Founder, Chair & CEO Kevin Plank will be stepping down from his CEO role at the end of the year, ending his run as one of corporate America's "longest-serving CEOs after 23 years" during a time when the "average tenure is five years," according to a front-page piece by Lorraine Mirabella of the BALTIMORE SUN. Plank said, "This is my day job. This is my full-time (job) and none of that will change. ... I think I'll be working differently, but I won't be working any less. Under Armour remains my priority." Loyola Univ. Maryland's Sellinger School of Business finance professor Karryl Leggio said of Plank's tenure, "It's amazing he's been CEO for this long." UA President & COO Patrik Frisk will take over Jan. 1 as CEO, and analysts "offered mixed reactions to the transition, with some applauding it as a logical succession plan that will bring continuity." Some outsiders have "worried Plank lost his focus as he invested in whiskey, horse racing, real estate and other projects" (BALTIMORE SUN, 10/23). Consulting company GlobalData Managing Dir of Retail Neil Saunders said of Plank focusing more on brand building, innovation and strategy, "In the long run, that is probably a helpful move as all of those things are where the company needs to make improvements" (USA TODAY, 10/23).
WHAT'S NEXT? NPD Group VP & Senior Sports Industry Advisor Matt Powell said of UA's future, "They've got to try to move away from gym wear to sportswear -- that's going to be the key to turning the U.S. business around." Meanwhile, B. Riley FBR Senior Research Analyst Susan Anderson said that Frisk's "immediate moves" as CEO "must center on five tasks: reinvigorating its merchandise; improving segmentation across channels; elevating the higher-end product; returning that product to quality; and heightening its focus on leisure wear." Anderson: "The product has been taken too much downstream. Also, there hasn't been as big a focus on leisure (or) streetwear as other brands, given that is where the trends are right now" (FOOTWEARNEWS.com, 10/22).
STAMP OF APPROVAL: WOMEN'S WEAR DAILY's Palmieri & Ell noted the equity research team at Jeffries was "perhaps the most positive" about Frisk moving into the CEO role. The team in a note wrote, "This move supports our thesis that the Under Armour brand is strong." It added that Frisk's success so far proves he is an "ideal candidate" and that "there is more growth ahead to be unlocked" (WWD.com, 10/22). At presstime, shares of Under Armour were trading at $20.82, down 2.64% from the close of business yesterday (THE DAILY).
