Williams Trading Downgrades Under Armor Shares on CEO Transition by Investing.com

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On Thursday, Williams Trading changed its position regarding Under Armour , Inc. (NYSE: ), downgrading the stock from Buy to Hold and reducing the price target to $8, from $11 previously. The move follows the unexpected announcement of a leadership change at the sportswear company.

Under Armor revealed that Chairman and CEO Stephanie Linnartz will step down on April 1, 2024. Kevin Plank, the company’s founder and former CEO, is expected to return as Chairman and CEO on the same date.

Mohamed A. El-Erian will serve as non-executive chairman. As a result, Mr. Plank will relinquish his position as executive chairman, but will continue to serve on the board.

Linnartz, who took over as chairman and CEO on February 27, 2023, is stepping down after just over a year. The departure was described as a mutual decision between her and the Under Armor board, which was not initiated by Mr. Plank.

Under Ms. Linnartz’s leadership, the company strategically repositioned the Under Armor brand in the U.S. market and sought to strengthen its growing international presence. North American revenue for 2025 was expected to decline as brand repositioning strategies, including new product offerings and improved allocation and segmentation, began to take effect.

Analysts had previously estimated that a gradual approach would ultimately benefit Under Armour, giving the company room to make steady progress. The analyst expressed optimism that Mr. Plank’s return could breathe new life into the brand, given its historical influence and energy.

However, further details on Plank’s strategies for Under Armor are expected to be revealed during the company’s Q4 2024 earnings call scheduled for May 9, 2024. Until then, the market should remain attentive to the upcoming stages of the business.

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