Under Armour Founder Kevin Plank To Step Down As CEO

Under Armour Inc UAA said Tuesday in a press release its founder and CEO Kevin Plank will resign and be replaced with current COO and President Patrik Frisk.

What Happened

Plank served as CEO and Chairman since creating Under Armour in 1996 from his grandmother's basement and will step down as CEO on Jan. 1, 2020. Frisk joined Under Armour in 2017 after nearly three decades of relevant experience, including CEO of The ALDO Group and various President and Vice President positions at VF Corp VFC.

Why It's Important

Frisk has been a "key architect" in Under Armour's transformation plan, according to CNBC's Courtney Reagan, which includes supply chain improvements and sourcing capabilities.

"Patrik is the right person to serve as Under Armour's next CEO," Plank said in the press release. "As my partner during the most transformative chapter in our history, he has been exceptional in his ability to translate our brand's vision into world-class execution by focusing on our long-term strategy and re-engineering our ecosystem through a strategic, operational and cultural transformation."

What's Next

Plank will continue holding a presence at the company and will transition to Executive Chairman and Brand Chief next year. Plank will also focus on product elevation, promoting the brand while working to maintain a strong team culture.

Shares traded higher by 2.5% to $20.61 at time of publication.

Related Links:

Under Armour CEO: 'We're Doing The Right Things In The Right Markets'

Shoe Expert: NBA Fallout In China Could Lead To Consumers Ditching Nike, Under Armour

Photo credit: Maryland GovPics - Under Armour Opening, via Wikimedia Commons