Under Armour stock tumbles as Kevin Plank plans return as CEO

Shares of Baltimore-based Under Armour tumbled Thursday, as the market reacted to founder Kevin Plank’s plans to take over as CEO and replace Stephanie Linnartz after one year.

The athletic apparel maker said Wednesday after the stock market closed that Plank, who founded the brand nearly three decades ago, will return as president and CEO on April 1, more than four years after relinquishing the title. Plank’s return means the departure of Linnartz, who has led the company as both president and CEO for nearly 13 months.

Under Armour did not offer a reason for the management shake-up.

The surprise move sent shares tumbling around 13% Thursday morning. As of mid-morning, Under Armour’s stock hovered at $7.04 each, down 13.09%.

Linnartz, former president of hotel chain Marriott International whose appointment last February was seen as a coup for the struggling brand, notified Under Armour employees of her upcoming departure in a note Wednesday. She did not offer a reason or mention future plans.

One analyst, Sharon Zackfia, a consumer analyst with William Blair, said in a report Wednesday evening that the abrupt departure of Linnartz after such a short tenure “likely points to some difference with Plank on the forward vision of the company.”

Plank is Under Armour’s controlling shareholder with a majority of the voting stock.

Shortly after joining the company, Linnartz launched a three-year 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.

The company’s stock has languished, mostly under $10 a share, since mid-2022.

This story will be updated.