Under Armor, CEO Frisk has resigned

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Patrick Frisk will resign from his role as acting president and chief executive officer on June 1 under Armor Inc.

Shares of the Baltimore-based company fell 3.1% in extended trading.

The garment maker has named Colin Brown, its chief operating officer, as its interim CEO, while it is looking for a permanent replacement. Brown joined Under Armor in 2016 and replaced Frisk as operating chief in 2020.

Frisk, who joined in 2017 and was named CEO in 2020, will remain an advisor to the company until September 1.

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Sean Siegel, an analyst at BMO Capital Markets, says Frisk has helped Armor “dramatically improve” the health of his business over the past few years by focusing on inventory.

However, Under Armor forecast full-year profits below expectations earlier this month and posted a surprising loss for the fourth quarter, as it struggles with supply chain disruptions and lockdowns in China.

The company’s stock has fallen more than 50% this year, down from a more than 34% fall in rival Nike. In March, Nike said transportation delays would be a cause for concern after losing third-quarter revenue and profit estimates. (Reporting by Ananya Maryam Rajesh in Bangalore; Editing by Amy Karen Daniel and Maju Samuel)

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