Under Armour's new CEO will take over at a tricky time for the brand. Here are some of the biggest challenges he'll face.
- Kevin Plank is stepping down as CEO of Under Armour on January 1. Plank, who founded Under Armour in 1996, will be replaced by Patrik Frisk, who is currently COO of the company.
- Frisk will face some challenges, as Under Armour has struggled in recent years. In its most recent earnings results, the company missed revenue forecasts and said it expects sales to decline in North America throughout 2019.
- These are some of the biggest challenges Frisk will face when he takes over.
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Under Armour has a new CEO.On Tuesday, the brand's founder and longtime leader, Kevin Plank, stepped down from his role as CEO after 23 years. Plank will hand over his duties to Patrik Frisk officially on January 1. Advertisement
Frisk, who joined Under Armour as its COO in 2017, previously served as CEO of Aldo Group and has nearly 30 years of experience in the
Frisk will take the helm at a tricky time for Under Armour. Revenue growth has dropped from double-digit to single-digit figures as sales in its core North American market have continued to fall.Read more: Under Armour CEO Kevin Plank explains how he's getting the company back on the front foot after a bumpy 3 years
Here are the biggest challenges Frisk faces:
- Winning back customers in its core North American market, which accounts for 68% of its sales, and boosting revenues there.
- Addressing what analysts have dubbed its "identity crisis" and showing shoppers exactly what its place in the market is.
- Forging a distinct position for the brand as the market becomes increasingly crowded with other options for athletic wear.
- Communicating innovation at the brand and making sure it gets noticed for the work it gets done. (Plank told Fortune's Phil Wahba on Tuesday that he didn't feel the brand got enough credit for its HOVR smart shoe, which is connected to an app and gives the wearer real-time data on their fitness performance).
- Bringing women into the brand with new products and marketing and finally shedding its longtime masculine image.
- If management does choose to steer away from the athleisure trend, making sure it's winning over customers with performance wear and being the best in the market.
- Encouraging customers to pay full price after pulling back from discount retailers.
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