(Reuters) -Under Armour Inc on Wednesday named Stephanie Linnartz as its chief executive officer, months after Patrik Frisk stepped down from the role, sending shares of the apparel company marginally down in extended trading.
Linnartz currently serves as the president of Marriott International Inc and has been with the hotel chain operator in various roles for the last 25 years.
Joining Under Armour on Feb. 27, Linnartz will take the helm at a time when the company is grappling with weakening demand for sporting goods as decades-high inflation makes consumers cut corners.
In November, the company cut its annual revenue and profit forecasts and said it expects gross margins to fall about 550 basis points (bps) to 600 bps in the third quarter due to more promotions and a stronger dollar.
Former CEO Frisk, who joined Under Armour in 2017 and was named as CEO in 2020, had helped the company “dramatically improve” the health of its businesses during his time by focusing on building inventory.
The company said Linnartz will receive a base salary of $1.3 million per year and a one-time sign-on cash bonus of $375,000.
Meanwhile, Under Armour interim CEO Colin Browne will resume his responsibilities as chief operating officer.
(Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Anil D’Silva and Shinjini Ganguli)
