(CercleFinance.com) – Under Armor shares fell by more than 8% this Thursday on the New York Stock Exchange, the American specialist in sporting goods being penalized by the announcement of the departure of its general manager, Patrik Frisk.
Frisk, who joined the Baltimore group in 2017 before taking over as chief executive two years later, will step down on June 1.
In a reaction note, analysts at Wedbush Securities refer to a totally ‘unexpected’ departure.
“Frankly, we are a little surprised,” the broker said in a note.
‘Since joining Under Armor in 2017 (…), Mr. Frisk had enabled the group to improve its operating margin, which had increased from 3% in the 2017 financial year to almost 10% before the recent inflationary tensions do not appear, which seems quite impressive to us’, judges the broker.
Wedbush says, in any case, that he does not believe in the thesis of a voluntary departure, since Frisk will be called upon to receive compensation corresponding to two years of salary, in addition to his bonus, which corresponds to a total of some seven millions of dollars.
In its press release published last night, Under Armor indicates that it has started looking for its successor, internally and externally, appointing in the meantime Colin Browne, the current operational director, to replace him on an interim basis.
Note that Morgan Stanley lowered its recommendation from ‘overweight’ to ‘weight in line’ on the stock and lowered its price target from 14 to 11 dollars following this change, believing that the departure of Frisk compromised the chances of a business recovery.
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