Under Armour's Kevin Plank scored a big payday as investors celebrated his departure as CEO, a spot he has held since founding the company in 1996.
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He will transition to the role of executive chairman as president and COO Patrik Frisk takes over as CEO.
Plank, who owns 33.8 million Under Armour shares, or 14.79 percent of the company, saw his wealth increase on paper by about $89 million as shares spiked following the announcement. His stake in Under Armour is worth about $710 million.
Under Armour’s market capitalization peaked at $22.45 billion on Sept. 17, 2015. It was down about 60 percent to $9.2 billion as of Tuesday, according to Dow Jones Market Data Group.
“Our multi-year, transition approach has ensured purposeful leadership continuity,” Plank said in a statement. “Patrik is the right person to serve as Under Armour's next CEO."
The company suffered through an inventory backlog in the second half of 2017, which ultimately led to a restructuring plan that resulted in approximately $200 million of charges and a reduction of its global workforce by about 400 employees as consumers shifted their preferences toward active lifestyle brands like Lululemon. Rival Nike is also a competitor.
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Under Armour will report its third-quarter results on Monday, Nov. 4. Wall Street analysts surveyed by Refinitiv were expecting earnings of 18 cents a share on revenue of $1.4 billion.
Shares were up more than 12 percent this year, including Tuesday’s gain, by comparison, Nike shares have advanced over 29 percent during the same time frame.