Shares of Under Armour (UA,UAA) are trading lower as the company announced that previous CEO Kevin Plank, who stepped down in 2019, will once again take up the mantle of chief executive. He will replace current CEO Stephanie Linnartz, ending her three-year turnaround plan. Questions around what Plank can do to turn around what is perceived by some to be, in part, the mess he made, now arise.
Morningstar Equity Analyst David Swartz joins Yahoo Finance to discuss the change in leadership, the challenges the company faces in the market, and what Plank needs to do to turn things around for the sports apparel brand.
Swartz elaborates on what the top priority for Plank should be: "I think the number one top priority has to be to try to build the brand into something a little bit stronger than it is today. That could be done through differentiation of product by channel. Right now, Under Armour does not do a very good job at all of differentiating its products so that the stuff that Under Armour sells at Kohl's (KSS) is not that much different than what it sells at a store like Dick's Sporting Goods (DKS). And Under Armour needs to have stronger products, especially in footwear."
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Editor's note: This article was written by Nicholas Jacobino