Under armour Inc on Wednesday named veteran hotelier Stephanie Linnartz As its chief executive officer, bets her experience in e-commerce and branding strategy will help revive sales in skin producer.
Linnartz, who will join Baltimore-based Under Armor on February 27, will take over the company at a time when the company is grappling with uncertain demand for clothing and decades-high discretionary items. century. inflationary curb consumer spending.
Under Armor cut its annual guidance last month, pressured by promotions and a stronger dollar. Its shares have more than halved this year.
The company, whose product lines are backed by actors Dwayne Johnson and Stephen Curry of the National Basketball Association, also faces stiff competition from Nike Inc., which has been addressing inventory issues recently, reported positive quarterly results on Tuesday.
Designate an outsider like CEO echoed a similar move by Nike nearly three years ago when the athletic shoe maker appointed former eBay Inc CEO John Donahoe to task him with ramping up its online strategy.
Morningstar analyst David Swartz said: “It’s a bit unusual for Under Armor to pick someone out of the industry.
“It is clear that the company is interested in her background in developing Marriott’s membership programs and digital strategy,” he said, adding that these are areas where the company followed by Nike and Adidas AG.
Linnartz is currently the president of Marriott International Inc and has been with the hotel chain operator in various roles for the past 25 years.
She succeeds Patrik Frisk, who stepped down in June after two years on the job. Interim Chief Executive Officer Colin Browne will continue his responsibilities as chief executive officer, Under Armor said in a statement.
Shares of Under Armor fell 2% after market trading.
Linnartz will receive a base salary of $1.3 million per year and a single sign-on cash bonus of $375,000.