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Under Armour Reveals Priorities With Key Move

  • Under Armour announced Marriott International’s president Stephanie Linnartz as its new CEO.
  • Patrik Frisk stepped down from the position in May after two years.
Under-Armour CEO Stephanie Linnartz 
Under Armour

Under Armour is taking a major step as it looks to build out its digital business.

The sports equipment and apparel giant announced Marriott International’s president Stephanie Linnartz as its new CEO on Wednesday, seven months after Patrik Frisk stepped down from the position after two years.

Under Armour founder and executive chairman Kevin Plank said the company is leaning into its priorities of “digitization, product, and brand,” but isn’t looking for a major change in direction.

Plank told CNBC that Linnartz was hired out of the role’s 60 candidates for her previous success in transforming Marriott’s digital presence

  • Linnartz helped grow Marriott’s Bonvoy loyalty program to 173 million.
  • She also developed partnerships with the Mercedes-AMG PETRONAS Formula 1 team, the NFL, and the NCAA.

“Digital is 36% of Under Armour’s direct-to-consumer business and remains its fastest-growing channel,” said Poonam Goyal, Bloomberg Intelligence analyst. “Her experience with premier sports leagues and team partnerships might prove to be an asset for Under Armour.”

Underwhelming Results

The news comes as Under Armour continues to struggle. 

The company reported net income of $86.9 million for the second quarter — a sharp decline from the $113.4 million it reported during the same period last year. The company’s stock has lost more than 50% of its value in 2022.

Under Armour ended the quarter with $1.1 billion in inventory, up 29% from the same period last year. The company also cut its full-year outlook.

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