An Unexpected CEO Change Adds Uncertainty, but No-Moat Under Armour’s Shares Are Inexpensive

No-moat Under Armour announced Patrik Frisk will resign from his CEO and director positions as of June 1. Frisk replaced cofounder and controlling shareholder Kevin Plank as CEO in January 2020. While no specific reason was given for the resignation, Plank’s comments in the press release suggest the company is looking for new growth opportunities after years of expense optimization efforts. Frisk will be replaced as CEO on an interim basis by chief operating officer Colin Browne, a former executive at narrow-moat VF Corporation. Under Armour will conduct an external search for a permanent CEO, but the timing is unknown.