Under Armour Inc (NYSE:UA) announced Patrik Frisk will become the company’s President and Chief Operating Officer (COO) effective July 10. In conjunction with Mr. Frisk’s appointment, the company also announced strategic executive changes to align its organizational structure to better leverage its digital business, support its move toward category management, and drive greater operational efficiency across the organization.
As President and COO of Under Armour, Mr. Frisk will have responsibility for the company’s go-to-market strategy and the successful execution of its long-term growth plan. He will report directly to Chairman and Chief Executive Officer Kevin Plank. The following executives will report to Mr. Frisk: Charlie Maurath, Chief Revenue Officer; Kevin Eskridge, Chief Product Officer; Andy Donkin, Chief Marketing Officer; Colin Browne, Chief Supply Chain officer; and, Kevin Haley, President of Strategy.
“Patrik’s global experience in brand building, including a proven and disciplined record of driving growth, while enhancing profitability and efficiency, will be instrumental as we work to transform our business model to deliver long-term value for our consumers, customers and shareholders,” said Plank. “The opportunity to leverage our strengths – innovative product, brand strength, premium sports marketing assets and unparalleled consumer connections – within an increasingly more digital ecosystem has never been greater.”
Mr. Frisk has nearly 30 years’ experience in the apparel, footwear and retail industry. Most recently, he was CEO of The ALDO Group, a global footwear and accessories company. Previous to that, he spent 10 years with VF Corporation where he served as the Coalition President of Outdoor Americas with responsibility for The North Face®, Timberland®, JanSport®, lucy® and SmartWool® brands. Before that, he was President of the Timberland® brand and prior to that, was President of Outdoor & Action Sports (EMEA) where he had responsibility for The North Face®, Vans®, JanSport® and Reef® brands. Previous to that, he was Vice President and General Manager of The North Face®. Before VF Corporation, he ran his own retail business in Scandinavia and held senior positions with Peak Performance and W.L. Gore & Associates.
Additional Management Changes
Paul Fipps has been named Chief Technology Officer with responsibility for overseeing all aspects of engineering that support Under Armour’s web and mobile applications, as well as its information technology and real estate functions. Additionally, he will lead Under Armour’s Connected Fitness business with Chief Digital Officer and head of Connected Fitness Michael Lee reporting to Mr. Fipps directly. This realignment integrates the company’s digital ecosystem including its single view of the consumer data and additional SAP capabilities to fuel product creation and personalization, increase speed to market and accelerate consumer value. He will report directly to Mr. Plank. Most recently, he served as the company’s Chief Information Officer and Executive Vice President of Global Operations after joining Under Armour in 2014 as Senior Vice President of Global Operations. Prior to joining the company, he served as Chief Information Officer and Corporate Vice President of Business Services at The Charmer Sunbelt Group.
Colin Browne has been named Chief Supply Chain Officer with responsibility for all global operations related to product sourcing and logistics. Mr. Browne joined Under Armour in 2016 as President of Global Sourcing. Prior to that, he was Vice President and Managing Director of Supply Chain at VF Corporation (VF), where he led all aspects of the company’s sourcing and product supply organization in Asia. Before VF, Mr. Browne was the Executive Vice President of Footwear and Accessories at Li & Fung, CEO of Pentland Brands in Asia, and held senior leadership positions at Reebok and Bally.
Additionally, in May, Kevin Eskridge was named Chief Product Officer. Mr. Eskridge has oversight of the company’s category management model, as well as its product, merchandising, design and innovation functions. He has been with the company since 2009, and has served in various leadership roles, including establishing the company business in China as Managing Director, its Outdoor business, and most recently served as Senior Vice President, Global Merchandising.
In addition to Mr. Frisk and Mr. Fipps, continuing to report to Mr. Plank will be the following executives: Kip Fulks, Strategic Advisor; Kerry Chandler, Chief Human Resources Officer; John Stanton, Senior Vice President, General Counsel and Corporate Secretary; and, David Bergman, Chief Financial Officer (Acting).
“Today’s leadership appointments and the streamlining of our organizational structure are transformative steps focused on a sharper, consumer-led approach and go-to-market strategy through our category management lens,” continued Plank. “With the stated goals of accelerating our innovation agenda, optimizing our product assortment and creating a merchandising center of excellence, this underscores our work toward evolving from a great brand with good operations – to a great brand with great operations.”
Shares of Under Armour closed yesterday at $19.92, up $0.27 or 1.37%. UA has a 1-year high of $42.94 and a 1-year low of $17.05. The stock’s 50-day moving average is $19.05 and its 200-day moving average is $20.51.
On the ratings front, Under Armour has been the subject of a number of recent research reports. In a report released yesterday, Oppenheimer analyst Anna Andreeva reiterated a Hold rating on UA. Separately, on June 20, Jefferies Co.’s Randal Konik maintained a Buy rating on the stock and has a price target of $28.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Anna Andreeva and Randal Konik have a yearly average return of 3% and a loss of -1.9% respectively. Andreeva has a success rate of 47% and is ranked #1441 out of 4596 analysts, while Konik has a success rate of 46% and is ranked #4058.
Sentiment on the street is mostly neutral on UA stock. Out of 13 analysts who cover the stock, 8 suggest a Hold rating , 3 suggest a Sell and 2 recommend to Buy the stock. The 12-month average price target assigned to the stock is $19.18, which represents a slight downside potential from current levels.
Under Armour, Inc. engages in the developing, marketing and distributing of branded performance apparel, footwear and accessories for men, women and youth. It operates through the following geographical segments: North America, Latin America, Europe, the Middle East, and Africa.