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After two years on the job, Patrik Frisk., CEO of Under Armour announced on Wednesday he will step down, effective June 1, with COO Colin Browne filling the role in the meantime, while the brand looks for a permanent replacement.
Frisk did not share any concrete reason for his unexpected departure and declined to comment when asked CNBCbut there’s no denying that the struggling athletic brand had a disappointing quarter — after a few disappointing years.
While the brand has seen periods of upswing, Under Armor stock has generally plummeted since 2015 52% only in the past year.
Related: Under Armor stock was up 27 percent today. This is why.
When the former CEO came on the scene in 2017, he began revamping operations and drafting a restructuring plan that was completed in March and cost the company a lot of money. $571 million† In recent years, the company has committed to “laying the groundwork,” said Browne, per Yahoo Finance† “We’re at that next iteration.”
The company is optimistic about the transition and looks forward to finding the next leader to bring the brand to “new heights†
Frisk will remain with the company until September 1 as a consultant to help with the transition, and he received a $7.1 million severance package.
“It has been the greatest privilege of my career to serve Under Armor athletes, clients, shareholders and teammates. I am immensely proud of what we have accomplished as a team,” Frisk said in a comment. statement† “Colin has a deep understanding of the Under Armor business and our industry. I am confident that his stewardship will enable a seamless transition.”
Related: The Under Armor CEO Was “Broken” After Year One This is what happened next.