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Struggling Under Armour turns to new CEO from Marriott as it strives to boost digital sales and compete with Nike

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Under ArmourUnder Armour announces new CEO

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  • Under Armour on Wednesday named Stephanie Linnartz CEO.
  • In recent years, the company’s lost ground against rivals Nike and Adidas
  • Linnartz, whose strengths include technology and loyalty programs, starts work on February 27.

Under Armour late Wednesday named a veteran hotel executive the company’s next CEO. 

Stephanie Linnartz will start work on February 27 and try to make up lost digital ground with Nike and others. Linnartz, who most recently served as the president of Marriott International, also will be charged with rebuilding the company’s relationships with consumers.

Under Armour has underperformed its corporate rivals of late.  Over its last two fiscal years, Under Armour’s revenue is up nearly 8% to $5.6 billion, while Nike’s revenue increased nearly 25% in its last two fiscal years to $46.7 billion.

In a securities filing, the company noted Linnartz’ accomplishments in corporate leadership, including in digital and technology, suggesting that, like Nike and others, Under Armour wants to ramp up sales on its apps and website and more fully connect with consumers online. 

New Under Armour CEO Stephanie LinnartzNew Under Armour CEO Stephanie Linnartz

Courtesy Under Armour

In a news release, Under Armour Executive Chair Kevin Plank credited Linnartz with leading Marriott’s “multi-billion dollar digital transformation, driving scale through continuous brand innovation across the portfolio.”

Plank also noted Linnartz’ success at building loyalty programs, an area where rival Nike is finding a new pocket of growth. At Marriott, Linnartz oversaw the company’s Marriott Bonvoy membership program.

Before serving as president of Marriott, Linnartz served as Marriott Group’s president of consumer operations, technology and emerging businesses. She’s also on the board of Home Depot. 

Colin Browne, who’s serving as interim CEO, will return to his former role as chief operating officer. 

Linnartz will earn an annual base salary of $1.3 million and be eligible for a bonus equal to 165% of her salary, according to a securities filing. She’ll also get stock worth $8 million and a $375,000 hiring bonus. 

Under Armour announced Linnartz’ hiring after the market close. Shares were down slightly in after-hours trading. 

Read the original article on Business Insider
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