What happened
Shares of Under Armour (UAA 1.81%) (UA 1.73%) fell sharply on Thursday after the athletic apparel maker announced the imminent and unexpected departure of its chief executive officer.
So what
Patrik Frisk will step down from his roles as CEO and board member on June 1. Chief operating officer Colin Browne will take on interim CEO duties at that time until a permanent replacement is found. Frisk will stay on as an advisor to the company until Sept. 1.
Under Armour is looking to fill its CEO's seat. Image source: Getty Images.
Frisk joined Under Armour in 2017 and succeeded founder Kevin Plank as CEO on Jan. 1, 2020. He was tasked with restructuring the sports apparel brand's operations. Increased efficiency and profitability were key goals. Frisk made some significant progress in this regard; Under Armour's operating margin improved from 3% in 2017 to more than 9% in 2021.
However, supply chain disruptions and rising costs have weighed on profitability in recent quarters. Shares plunged earlier this month after Under Armour reported an unexpected loss for the period ending on March 31.
Now what
Browne is credited with spearheading Under Armour's digital and direct-to-consumer initiatives. He's also regarded as a supply chain expert. That expertise should prove valuable as Browne strives to help the struggling apparel maker overcome its coronavirus-related logistical challenges.
"There is a huge opportunity in front of us," Plank said. "I look forward to working closely with the board during the search process to find our next leader who will take us to new heights."
