Founder Plank back as Under Armour chief
Linnartz to step down after a little more than a year
Kevin Plank, who founded Baltimore-based Under Armour nearly three decades ago, will return as the sports apparel maker’s CEO after more than four years.
Plank will replace Stephanie Linnartz as both president and CEO on April 1, the brand said late Wednesday. Linnartz, former president of hotel chain Marriott International, has led the company for just over a year. She also will step down as a board member.
Under Armour did not give a reason for the abrupt management shake-up.
“While the abrupt departure of Linnartz after such a short tenure likely points to some difference with Plank on the forward vision of the company, we still see value in Under Armour’s stock,” Sharon Zackfia, a consumer analyst with William Blair, said in a report Wednesday evening. “Risks include Under Armour’s ability to maintain and evolve a strong brand image and product portfolio in an industry with intense competition, historically high turnover rates in senior management,” and majority voting control held by Plank.
Mohamed A. El-Erian, an independent director since 2018 and lead director since 2020, will become the board’s non-executive chair. Plank, now executive chair and brand chief, will move from executive chair and serve on the board as a director. Linnartz will remain as an adviser through April 30.
In a news release, Plank thanked Linnartz for her contributions and said she has helped “set us on the right path.”
“During her tenure, she strengthened the leadership team with executive hires in critical areas, including product, design, supply chain, consumer connectivity, and regional management,” Plank said. “Her prior experience leading major brands was instrumental in focusing our consumer strategy, including the launch of the U.S. loyalty program.”
Linnartz notified Under Armour employees of her upcoming departure in a
note Wednesday but did not mention future plans. She is Under Armour’s thirdever CEO, and the second since Plank stepped down as CEO in 2019. In that role, Plank had steered Under Armour from a basement startup selling sweat-wicking T-shirts in 1996 to a $5.2 billion global brand.
Linnartz had said shortly after joining the company that she envisioned a threeyear plan, Protect this House 3, to strengthen the brand in the United States, boost U.S. sales growth and elevate the design of footwear, women’s apparel and “sportstyle” products.
She said Wednesday that the brand has made progress on the turnaround, “strengthening our team, evolving our products and marketing, and increasing our focus on profitability.”
The sports apparel seller merged from a mixed holiday season at the end of last year and reported in February that sales and profit fell in the third quarter. The company was forced to revise estimates for the full year, saying revenue is expected to be down 3% to 4% instead of the previously expected 2% to 4% decline. Under Armour’s stock price has plummeted 65% in the past three years.
The brand had been navigating a highly promotional retail environment as demand for its footwear in the U.S. has weakened. Meanwhile, it had begun working to revamp its leadership team, regain a reputation as a premium brand and make a splash in “sportsstyle” categories.
Linnartz began setting her vision in motion with a management shuffle that began last summer. She replaced several members of the senior executive team, brought in a new chief consumer officer from Marriott, named a new chief technology officer from within the company, and created a new role of chief supply chain officer, among other moves.
About two-thirds of those who report to Linnartz across product, marketing, communications, operations and sales regions are new to their roles, Linnartz said in her note.
Zackfia said she was surprised by the announcement and raised concerns about whether Plank would seek to once again reshape the leadership team or change course on becoming more efficient.
“While nobody understands Under Armour’s DNA like Plank, his historical focus in the CEO role was on pushing revenue growth, which could put our thesis at risk that fiscal 2025 will mark a year of seeking and harvesting cost efficiencies, particularly in supply chain and marketing,” Zackfia said.
It’s possible that Plank could reset some key roles, but his heavy involvement as brand chief offers some assurance that key hires will stay in place, she said.
Linnartz came to Under Armour from Marriott, where she had spent 25 years with the lodging giant before becoming its president in 2021.
She had not previously led retail or apparel brands, though she had been a member of the board of home improvement retailer Home Depot.
When she was hired, analysts had said it was unusual to bring in someone from outside the industry, but they applauded her experience guiding a much larger, global brand, her viewpoint as a female executive and know-how in the digital space that’s critical to Under Armour’s growth.